Discounted Cash Flow (DCF) Analysis Levered

Free Cash Flow Alphabet In

Year A / P	2012 Actual	2013 Actual	2014 Actual	2015 Actual	2016 Actual	2017 Projected	2018 Projected	2019 Projected	2020 Projected	2021 Projected
Revenue	59,825	66,001	74,989	90,272	110,855	129,479	151,231	176,638	206,313	240,974
Revenue (%)
OperatingCashFlow	18,659	22,376	26,024	36,036	37,091	44,800	52,326	61,117	71,384	83,377
OperatingCashFlow (%)
CapitalExpenditure	-7,358	-10,959	-9,915	-10,212	-13,184	-16,962	-19,811	-23,140	-27,027	-31,568
CapitalExpenditure (%)
FreeCashFlow	11,301	11,417	16,109	25,824	23,907	27,838	32,515	37,977	44,357	51,809

Year A / P	2012 Actual	2013 Actual	2014 Actual	2015 Actual	2016 Actual
Revenue	59,825	66,001	74,989	90,272	110,855
Revenue (%)
OperatingCashFlow	18,659	22,376	26,024	36,036	37,091
OperatingCashFlow (%)
CapitalExpenditure	-7,358	-10,959	-9,915	-10,212	-13,184
CapitalExpenditure (%)
FreeCashFlow	11,301	11,417	16,109	25,824	23,907

Year A / P	2017 Projected	2018 Projected	2019 Projected	2020 Projected	2021 Projected
Revenue	129,479	151,231	176,638	206,313	240,974
Revenue (%)
OperatingCashFlow	44,800	52,326	61,117	71,384	83,377
OperatingCashFlow (%)
CapitalExpenditure	-16,962	-19,811	-23,140	-27,027	-31,568
CapitalExpenditure (%)
FreeCashFlow	27,838	32,515	37,977	44,357	51,809

Weighted Average Cost Of Capital Alphabet In

Share Price	$ 1029.8
Diluted Shares Outstanding	693
Cost of Debt
Tax Rate	53.4
After-tax Cost of Debt	3.8
Risk Free Rate
Market Risk Premium
Cost of Equity	11.08
Total Debt	3,969.00
Total Equity	724,979.20
Total Capital	728,948.20
Debt Weighting	0.54
Equity Weighting	99.46
Wacc

Build Up Free Cash Flow Alphabet In

Year A / P	2012 Actual	2013 Actual	2014 Actual	2015 Actual	2016 Actual	2017 Projected	2018 Projected	2019 Projected	2020 Projected	2021 Projected
Revenue	59,825	66,001	74,989	90,272	110,855	129,479	151,231	176,638	206,313	240,974
OperatingCashFlow	18,659	22,376	26,024	36,036	37,091	44,800	52,326	61,117	71,384	83,377
CapitalExpenditure	-7,358	-10,959	-9,915	-10,212	-13,184	-16,962	-19,811	-23,140	-27,027	-31,568
FreeCashFlowFreeCashFlow	11,301	11,417	16,109	25,824	23,907	27,838	32,515	37,977	44,357	51,809
WACC
PV LFCF						25,057	26,342	27,694	29,114	30,608
SUM PV LFCF										138,815

Year A / P	2012 Actual	2013 Actual	2014 Actual	2015 Actual	2016 Actual
Revenue	59,825	66,001	74,989	90,272	110,855
OperatingCashFlow	18,659	22,376	26,024	36,036	37,091
CapitalExpenditure	-7,358	-10,959	-9,915	-10,212	-13,184
FreeCashFlowFreeCashFlow	11,301	11,417	16,109	25,824	23,907
WACC
PV LFCF
SUM PV LFCF

Year A / P	2017 Projected	2018 Projected	2019 Projected	2020 Projected	2021 Projected
Revenue	129,479	151,231	176,638	206,313	240,974
OperatingCashFlow	44,800	52,326	61,117	71,384	83,377
CapitalExpenditure	-16,962	-19,811	-23,140	-27,027	-31,568
FreeCashFlowFreeCashFlow	27,838	32,515	37,977	44,357	51,809
WACC
PV LFCF	25,057	26,342	27,694	29,114	30,608
SUM PV LFCF					138,815

Terminal Value Alphabet In

Growth in perpetuity method:
Long term growth rate
WACC (%)	11.1
Free cash flow (t+1)	53,881.70
Terminal Value	758,897.20
Present Value of Terminal Value	448,345.34

Intrinsic Value Alphabet In

Enterprise Value	587,160
Net Debt	-97,902
Equity Value	685,062
Shares Outstanding	704
Equity Value Per Share	973

Results Levered DCF Alphabet In

${Wacc}/{Long \space Term \space Growth}$	-4 (%)	-3 (%)	-2 (%)	-1 (%)	0 (%)	1 (%)	2 (%)	3 (%)	4 (%)
9.1 (%)	685 Sell	718 Sell	757 Sell	803 Sell	859 Sell	930 Sell	1,020 Sell	1,140 Buy	1,307 Buy
9.6 (%)	665 Sell	694 Sell	729 Sell	771 Sell	821 Sell	883 Sell	961 Sell	1,062 Buy	1,200 Buy
10.1 (%)	646 Sell	673 Sell	705 Sell	742 Sell	787 Sell	841 Sell	909 Sell	996 Sell	1,112 Buy
10.6 (%)	629 Sell	653 Sell	682 Sell	716 Sell	756 Sell	804 Sell	864 Sell	939 Sell	1,037 Buy
11.1 (%)	613 Sell	635 Sell	661 Sell	692 Sell	728 Sell	771 Sell	824 Sell	889 Sell	973 Sell
11.6 (%)	598 Sell	619 Sell	643 Sell	670 Sell	703 Sell	741 Sell	788 Sell	845 Sell	918 Sell
12.1 (%)	584 Sell	603 Sell	625 Sell	650 Sell	680 Sell	715 Sell	756 Sell	807 Sell	870 Sell
12.6 (%)	571 Sell	589 Sell	609 Sell	632 Sell	659 Sell	690 Sell	727 Sell	772 Sell	828 Sell
13.1 (%)	559 Sell	576 Sell	594 Sell	615 Sell	640 Sell	668 Sell	702 Sell	742 Sell	791 Sell

${Wacc}/{Long \space Term \space Growth}$	-4 (%)	-3 (%)	-2 (%)	-1 (%)	0 (%)
9.1 (%)	685 Sell	718 Sell	757 Sell	803 Sell	859 Sell
9.6 (%)	665 Sell	694 Sell	729 Sell	771 Sell	821 Sell
10.1 (%)	646 Sell	673 Sell	705 Sell	742 Sell	787 Sell
10.6 (%)	629 Sell	653 Sell	682 Sell	716 Sell	756 Sell
11.1 (%)	613 Sell	635 Sell	661 Sell	692 Sell	728 Sell

${Wacc}/{Long \space Term \space Growth}$	1 (%)	2 (%)	3 (%)	4 (%)
11.6 (%)	741 Sell	788 Sell	845 Sell	918 Sell
12.1 (%)	715 Sell	756 Sell	807 Sell	870 Sell
12.6 (%)	690 Sell	727 Sell	772 Sell	828 Sell
13.1 (%)	668 Sell	702 Sell	742 Sell	791 Sell

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