Discounted Cash Flow (DCF) Analysis Levered

Alphabet Inc. (GOOG)

$ 2356.74
2.49 (+0.11%)

Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 59,82566,00174,98990,272110,855136,819161,857182,527214,238.47251,459.35295,146.84346,424.40406,610.71
Revenue (%)
Operating Cash Flow 18,65922,37626,57236,03637,09147,97154,52065,12474,536.1287,485.71102,685.10120,525.18141,464.71
Operating Cash Flow (%)
Capital Expenditure -7,358-10,959-9,915-10,212-13,184-25,139-23,548-22,281-29,581.10-34,720.39-40,752.56-47,832.74-56,143
Capital Expenditure (%)
Free Cash Flow 11,30111,41716,65725,82423,90722,83230,97242,84344,955.0252,765.3261,932.5472,692.4385,321.71

Weighted Average Cost Of Capital

Share price $ 2,356.74
Beta 0.996
Diluted Shares Outstanding 680.79
Cost of Debt
Tax Rate 16.25
After-tax Cost of Debt 4.19%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.385
Total Debt 26,772
Total Equity 1,604,455.84
Total Capital 1,631,227.84
Debt Weighting 1.64
Equity Weighting 98.36
Wacc

Build Up Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 59,82566,00174,98990,272110,855136,819161,857182,527214,238.47251,459.35295,146.84346,424.40406,610.71
Operating Cash Flow 18,65922,37626,57236,03637,09147,97154,52065,12474,536.1287,485.71102,685.10120,525.18141,464.71
Capital Expenditure -7,358-10,959-9,915-10,212-13,184-25,139-23,548-22,281-29,581.10-34,720.39-40,752.56-47,832.74-56,143
Free Cash Flow 11,30111,41716,65725,82423,90722,83230,97242,84344,955.0252,765.3261,932.5472,692.4385,321.71
WACC
PV LFCF 40,764.4443,386.5446,177.3149,147.5952,308.92
SUM PV LFCF 231,784.79

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.28
Free cash flow (t + 1) 88,734.58
Terminal Value 1,412,971.01
Present Value of Terminal Value 866,262.40

Intrinsic Value

Enterprise Value 1,098,047.19
Net Debt 307
Equity Value 1,097,740.19
Shares Outstanding 680.79
Equity Value Per Share 1,612.44