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 | 59,825 | 66,001 | 74,989 | 90,272 | 110,855 | 136,819 | 161,857 | 182,527 | 214,238.47 | 251,459.35 | 295,146.84 | 346,424.40 | 406,610.71 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||||||
| Operating Cash Flow | 18,659 | 22,376 | 26,572 | 36,036 | 37,091 | 47,971 | 54,520 | 65,124 | 74,536.12 | 87,485.71 | 102,685.10 | 120,525.18 | 141,464.71 |
| 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 | 11,301 | 11,417 | 16,657 | 25,824 | 23,907 | 22,832 | 30,972 | 42,843 | 44,955.02 | 52,765.32 | 61,932.54 | 72,692.43 | 85,321.71 |
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 | 59,825 | 66,001 | 74,989 | 90,272 | 110,855 | 136,819 | 161,857 | 182,527 | 214,238.47 | 251,459.35 | 295,146.84 | 346,424.40 | 406,610.71 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 18,659 | 22,376 | 26,572 | 36,036 | 37,091 | 47,971 | 54,520 | 65,124 | 74,536.12 | 87,485.71 | 102,685.10 | 120,525.18 | 141,464.71 |
| 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 | 11,301 | 11,417 | 16,657 | 25,824 | 23,907 | 22,832 | 30,972 | 42,843 | 44,955.02 | 52,765.32 | 61,932.54 | 72,692.43 | 85,321.71 |
| WACC | |||||||||||||
| PV LFCF | 40,764.44 | 43,386.54 | 46,177.31 | 49,147.59 | 52,308.92 | ||||||||
| 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 |