Discounted Cash Flow (DCF) Analysis Levered

Alphabet Inc

Alphabet Inc (GOOGL)

$1458.66
19.6 (+1.36%)

Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
Revenue 55,519.0066,001.0074,989.0090,272.00110,855.00136,819.00161,857.00193,527.31231,394.51276,671.12330,806.94395,535.43
Revenue (%)
Operating Cash Flow 18,659.0023,024.0026,572.0036,036.0037,091.0047,971.0054,520.0068,025.1981,335.5897,250.39116,279.23139,031.41
Operating Cash Flow (%)
Capital Expenditure -7,358.00-11,014.00-9,950.00-10,212.00-13,184.00-25,139.00-23,548.00-27,463.57-32,837.33-39,262.56-46,945.00-56,130.66
Capital Expenditure (%)
Free Cash Flow 11,301.0012,010.0016,622.0025,824.0023,907.0022,832.0030,972.0040,561.6248,498.2557,987.8369,334.2282,900.74

Weighted Average Cost Of Capital

Share price $ 1,458.66
Beta 1.108
Diluted Shares Outstanding 698.56
Cost of Debt
Tax Rate 13.33
After-tax Cost of Debt 4.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.278
Total Debt 4,554.00
Total Equity 1,018,955.69
Total Capital 1,023,509.69
Debt Weighting 0.44
Equity Weighting 99.56
Wacc

Build Up Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
Revenue 55,519.0066,001.0074,989.0090,272.00110,855.00136,819.00161,857.00193,527.31231,394.51276,671.12330,806.94395,535.43
Operating Cash Flow 18,659.0023,024.0026,572.0036,036.0037,091.0047,971.0054,520.0068,025.1981,335.5897,250.39116,279.23139,031.41
Capital Expenditure -7,358.00-11,014.00-9,950.00-10,212.00-13,184.00-25,139.00-23,548.00-27,463.57-32,837.33-39,262.56-46,945.00-56,130.66
Free Cash Flow 11,301.0012,010.0016,622.0025,824.0023,907.0022,832.0030,972.0040,561.6248,498.2557,987.8369,334.2282,900.74
WACC
PV LFCF 36,459.8839,185.5642,115.0045,263.4448,647.25
SUM PV LFCF 211,671.14

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.25
Free cash flow (t + 1) 86,216.77
Terminal Value 1,189,196.89
Present Value of Terminal Value 697,836.47

Intrinsic Value

Enterprise Value 909,507.62
Net Debt -13,944.00
Equity Value 923,451.62
Shares Outstanding 698.56
Equity Value Per Share 1,321.94