Discounted Cash Flow (DCF) Analysis Levered

Alphabet Inc. (GOOG)

$2036.86
5.5 (+0.27%)

Free Cash Flow

Year
A/P
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 74,989.0090,272.00110,855.00136,819.00161,857.00182,527.00218,183.15260,804.62311,752.08372,651.99445,448.53
Revenue (%)
Operating Cash Flow 26,572.0036,036.0037,091.0047,971.0054,520.0065,124.0077,541.4692,688.97110,795.51132,439.10158,310.72
Operating Cash Flow (%)
Capital Expenditure -9,915.00-10,212.00-13,184.00-25,139.00-23,548.00-22,281.00-29,657.25-35,450.71-42,375.91-50,653.93-60,549.03
Capital Expenditure (%)
Free Cash Flow 16,657.0025,824.0023,907.0022,832.0030,972.0042,843.0047,884.2157,238.2668,419.5981,785.1797,761.68

Weighted Average Cost Of Capital

Share price $ 2,036.86
Beta 1.023
Diluted Shares Outstanding 346.08
Cost of Debt
Tax Rate 16.25
After-tax Cost of Debt 4.19%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.601
Total Debt 13,932.00
Total Equity 704,924.66
Total Capital 718,856.66
Debt Weighting 1.94
Equity Weighting 98.06
Wacc

Build Up Free Cash Flow

Year
A/P
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 74,989.0090,272.00110,855.00136,819.00161,857.00182,527.00218,183.15260,804.62311,752.08372,651.99445,448.53
Operating Cash Flow 26,572.0036,036.0037,091.0047,971.0054,520.0065,124.0077,541.4692,688.97110,795.51132,439.10158,310.72
Capital Expenditure -9,915.00-10,212.00-13,184.00-25,139.00-23,548.00-22,281.00-29,657.25-35,450.71-42,375.91-50,653.93-60,549.03
Free Cash Flow 16,657.0025,824.0023,907.0022,832.0030,972.0042,843.0047,884.2157,238.2668,419.5981,785.1797,761.68
WACC
PV LFCF 47,884.2151,808.7156,054.8560,648.9965,619.66
SUM PV LFCF 255,264.68

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.48
Free cash flow (t + 1) 101,672.15
Terminal Value 1,569,014.62
Present Value of Terminal Value 953,254.06

Intrinsic Value

Enterprise Value 1,208,518.74
Net Debt -12,533.00
Equity Value 1,221,051.74
Shares Outstanding 346.08
Equity Value Per Share 3,528.19