Discounted Cash Flow (DCF) Analysis Levered

Facebook, Inc. (FB)

$ 345.96
2.75 0.80%

Free Cash Flow

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 27,63840,65355,83870,69785,965114,473.35152,435.86202,987.78270,304.09359,944.35
Revenue (%)
Operating Cash Flow 16,10824,21629,27436,31438,74761,063.5281,313.85108,279.76144,188.30192,005.10
Operating Cash Flow (%)
Capital Expenditure -4,491-6,733-13,915-15,102-15,115-22,133.68-29,473.82-39,248.14-52,263.90-69,596.05
Capital Expenditure (%)
Free Cash Flow 11,61717,48315,35921,21223,63238,929.8451,840.0469,031.6291,924.40122,409.05

Weighted Average Cost Of Capital

Share price $ 345.96
Beta 1.295
Diluted Shares Outstanding 2,882
Cost of Debt
Tax Rate 12.16
After-tax Cost of Debt 4.39%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.771
Total Debt 10,654
Total Equity 997,056.72
Total Capital 1,007,710.72
Debt Weighting 1.06
Equity Weighting 98.94
Wacc

Build Up Free Cash Flow

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 27,63840,65355,83870,69785,965114,473.35152,435.86202,987.78270,304.09359,944.35
Operating Cash Flow 16,10824,21629,27436,31438,74761,063.5281,313.85108,279.76144,188.30192,005.10
Capital Expenditure -4,491-6,733-13,915-15,102-15,115-22,133.68-29,473.82-39,248.14-52,263.90-69,596.05
Free Cash Flow 11,61717,48315,35921,21223,63238,929.8451,840.0469,031.6291,924.40122,409.05
WACC
PV LFCF 19,019.6122,476.9526,562.7731,391.3037,097.54
SUM PV LFCF 248,039.06

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.68
Free cash flow (t + 1) 127,305.42
Terminal Value 1,466,652.26
Present Value of Terminal Value 807,407.85

Intrinsic Value

Enterprise Value 1,055,446.91
Net Debt -6,922
Equity Value 1,062,368.91
Shares Outstanding 2,882
Equity Value Per Share 368.62