Discounted Cash Flow (DCF) Analysis Levered
Facebook Inc. (FB)
Technology
Free Cash Flow
Year A/P | 2013 Actual | 2014 Actual | 2015 Actual | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Projected | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected |
| Revenue | 7,872.00 | 12,466.10 | 17,928.74 | 27,638.95 | 40,654.13 | 55,838.45 | 82,730.25 | 122,573.14 | 181,604.37 | 269,065.03 | 398,646.75 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||||
| Operating Cash Flow | 4,221.75 | 7,326.33 | 10,319.78 | 16,107.98 | 24,217.67 | 29,276.10 | 46,916.33 | 69,511.23 | 102,987.84 | 152,586.78 | 226,072.57 |
| Operating Cash Flow (%) | |||||||||||
| Capital Expenditure | -1,361.86 | -1,831.27 | -2,522.57 | -4,491.33 | -6,732.32 | -13,914.94 | -14,312.33 | -21,205.15 | -31,417.56 | -46,548.25 | -68,965.89 |
| Capital Expenditure (%) | |||||||||||
| Free Cash Flow | 2,859.90 | 5,495.06 | 7,797.21 | 11,616.65 | 17,485.34 | 15,361.16 | 32,603.99 | 48,306.07 | 71,570.28 | 106,038.53 | 157,106.68 |
Weighted Average Cost Of Capital
| Share price | $ 183.89 |
|---|---|
| Diluted Shares Outstanding | 2,921.00 |
| Cost of Debt | |
| Tax Rate | 12.81 |
| After-tax Cost of Debt | -0.59 |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.60 |
| Total Debt | - |
| Total Equity | 537,142.69 |
| Total Capital | 537,142.69 |
| Debt Weighting | 0.00 |
| Equity Weighting | 100.00 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2013 Actual | 2014 Actual | 2015 Actual | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Projected | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected |
| Revenue | 7,872.00 | 12,466.10 | 17,928.74 | 27,638.95 | 40,654.13 | 55,838.45 | 82,730.25 | 122,573.14 | 181,604.37 | 269,065.03 | 398,646.75 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 4,221.75 | 7,326.33 | 10,319.78 | 16,107.98 | 24,217.67 | 29,276.10 | 46,916.33 | 69,511.23 | 102,987.84 | 152,586.78 | 226,072.57 |
| Capital Expenditure | -1,361.86 | -1,831.27 | -2,522.57 | -4,491.33 | -6,732.32 | -13,914.94 | -14,312.33 | -21,205.15 | -31,417.56 | -46,548.25 | -68,965.89 |
| Free Cash Flow | 2,859.90 | 5,495.06 | 7,797.21 | 11,616.65 | 17,485.34 | 15,361.16 | 32,603.99 | 48,306.07 | 71,570.28 | 106,038.53 | 157,106.68 |
| WACC | |||||||||||
| PV LFCF | 27,142.49 | 36,691.89 | 49,601.01 | 67,051.87 | 90,642.39 | ||||||
| SUM PV LFCF | 212,521.26 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 9.60 |
| Free cash flow (t + 1) | 168,506.34 |
| Terminal Value | 3,009,041.77 |
| Present Value of Terminal Value | 1,902,722.47 |
Intrinsic Value
| Enterprise Value | 2,127,409.30 |
|---|---|
| Net Debt | -41,113.85 |
| Equity Value | 2,168,523.15 |
| Shares Outstanding | 2,921.00 |
| Equity Value Per Share | 718.45 |
Results Levered DCF
| Wacc / Long-term Growth | -4 (%) | -3 (%) | -2 (%) | -1 (%) | 0 (%) | 1 (%) | 2 (%) | 3 (%) | 4 (%) |
|---|---|---|---|---|---|---|---|---|---|
| 11.60 (%) | 395.45 Buy | 428.08 Buy | 467.51 Buy | 516.11 Buy | 577.50 Buy | 657.49 Buy | 766.06 Buy | 921.82 Buy | 1,164.12 Buy |
| 11.10 (%) | 375.91 Buy | 405.24 Buy | 440.37 Buy | 483.23 Buy | 536.66 Buy | 605.15 Buy | 696.09 Buy | 822.70 Buy | 1,011.07 Buy |
| 10.60 (%) | 358.11 Buy | 384.57 Buy | 416.01 Buy | 454.01 Buy | 500.85 Buy | 560.01 Buy | 637.09 Buy | 741.71 Buy | 891.82 Buy |
| 10.10 (%) | 341.83 Buy | 365.78 Buy | 394.05 Buy | 427.91 Buy | 469.21 Buy | 520.72 Buy | 586.73 Buy | 674.38 Buy | 796.41 Buy |
| 9.60 (%) | 326.90 Buy | 348.66 Buy | 374.16 Buy | 404.47 Buy | 441.11 Buy | 486.25 Buy | 543.29 Buy | 617.60 Buy | 718.45 Buy |
| 9.10 (%) | 313.18 Buy | 333.00 Buy | 356.09 Buy | 383.34 Buy | 415.99 Buy | 455.81 Buy | 505.47 Buy | 569.12 Buy | 653.63 Buy |
| 8.60 (%) | 300.53 Buy | 318.64 Buy | 339.61 Buy | 364.20 Buy | 393.44 Buy | 428.76 Buy | 472.30 Buy | 527.30 Buy | 598.96 Buy |
| 8.10 (%) | 288.85 Buy | 305.43 Buy | 324.54 Buy | 346.81 Buy | 373.10 Buy | 404.59 Buy | 443.00 Buy | 490.89 Buy | 552.28 Buy |
| 7.60 (%) | 278.03 Buy | 293.26 Buy | 310.72 Buy | 330.95 Buy | 354.68 Buy | 382.88 Buy | 416.95 Buy | 458.95 Buy | 512.00 Buy |