Discounted Cash Flow (DCF) Analysis Levered

Alphabet Inc. (GOOG)

$ 2836.53
17.76 0.63%

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 90,272110,855136,819161,857182,527217,797.29259,882.96310,100.99370,022.82441,523.53
Revenue (%)
Operating Cash Flow 36,03637,09147,97154,52065,12477,450.1092,416.04110,273.89131,582.47157,008.58
Operating Cash Flow (%)
Capital Expenditure -10,212-13,184-25,139-23,548-22,281-29,766.36-35,518.21-42,381.51-50,571.02-60,343.02
Capital Expenditure (%)
Free Cash Flow 25,82423,90722,83230,97242,84347,683.7556,897.8367,892.3981,011.4596,665.56

Weighted Average Cost Of Capital

Share price $ 2,836.53
Beta 1.004
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 10.455
Total Debt 15,626
Total Equity 1,931,094.28
Total Capital 1,946,720.28
Debt Weighting 0.80
Equity Weighting 99.20
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 90,272110,855136,819161,857182,527217,797.29259,882.96310,100.99370,022.82441,523.53
Operating Cash Flow 36,03637,09147,97154,52065,12477,450.1092,416.04110,273.89131,582.47157,008.58
Capital Expenditure -10,212-13,184-25,139-23,548-22,281-29,766.36-35,518.21-42,381.51-50,571.02-60,343.02
Free Cash Flow 25,82423,90722,83230,97242,84347,683.7556,897.8367,892.3981,011.4596,665.56
WACC
PV LFCF 43,191.8046,682.8750,456.1254,534.3558,942.21
SUM PV LFCF 253,807.35

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.40
Free cash flow (t + 1) 100,532.18
Terminal Value 1,570,815.32
Present Value of Terminal Value 957,810.87

Intrinsic Value

Enterprise Value 1,211,618.22
Net Debt -10,839
Equity Value 1,222,457.22
Shares Outstanding 680.79
Equity Value Per Share 1,795.63