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 | 74,989.00 | 90,272.00 | 110,855.00 | 136,819.00 | 161,857.00 | 182,527.00 | 218,183.15 | 260,804.62 | 311,752.08 | 372,651.99 | 445,448.53 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||||
| Operating Cash Flow | 26,572.00 | 36,036.00 | 37,091.00 | 47,971.00 | 54,520.00 | 65,124.00 | 77,541.46 | 92,688.97 | 110,795.51 | 132,439.10 | 158,310.72 |
| 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 | 16,657.00 | 25,824.00 | 23,907.00 | 22,832.00 | 30,972.00 | 42,843.00 | 47,884.21 | 57,238.26 | 68,419.59 | 81,785.17 | 97,761.68 |
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 | 74,989.00 | 90,272.00 | 110,855.00 | 136,819.00 | 161,857.00 | 182,527.00 | 218,183.15 | 260,804.62 | 311,752.08 | 372,651.99 | 445,448.53 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 26,572.00 | 36,036.00 | 37,091.00 | 47,971.00 | 54,520.00 | 65,124.00 | 77,541.46 | 92,688.97 | 110,795.51 | 132,439.10 | 158,310.72 |
| 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 | 16,657.00 | 25,824.00 | 23,907.00 | 22,832.00 | 30,972.00 | 42,843.00 | 47,884.21 | 57,238.26 | 68,419.59 | 81,785.17 | 97,761.68 |
| WACC | |||||||||||
| PV LFCF | 47,884.21 | 51,808.71 | 56,054.85 | 60,648.99 | 65,619.66 | ||||||
| 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 |