Discounted Cash Flow (DCF) Analysis Levered
Microsoft Corp (MSFT)
$231.6
4.87 (+2.15%)
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 | 77,849.00 | 86,833.00 | 93,580.00 | 85,320.00 | 89,950.00 | 110,360.00 | 125,843.00 | 143,015.00 | 156,555.63 | 171,378.28 | 187,604.33 | 205,366.66 | 224,810.73 |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | |||||||||||||
Operating Cash Flow | 28,833.00 | 32,231.00 | 29,080.00 | 33,325.00 | 39,507.00 | 43,884.00 | 52,185.00 | 60,675.00 | 61,031.01 | 66,809.41 | 73,134.91 | 80,059.30 | 87,639.30 |
Operating Cash Flow (%) | |||||||||||||
Capital Expenditure | -4,257.00 | -5,485.00 | -5,944.00 | -8,343.00 | -8,129.00 | -11,632.00 | -13,925.00 | -15,441.00 | -13,572.34 | -14,857.36 | -16,264.05 | -17,803.93 | -19,489.60 |
Capital Expenditure (%) | |||||||||||||
Free Cash Flow | 24,576.00 | 26,746.00 | 23,136.00 | 24,982.00 | 31,378.00 | 32,252.00 | 38,260.00 | 45,234.00 | 47,458.67 | 51,952.05 | 56,870.86 | 62,255.37 | 68,149.70 |
Weighted Average Cost Of Capital
Share price | $ 231.6 |
---|---|
Beta | 0.855 |
Diluted Shares Outstanding | 7,683.00 |
Cost of Debt | |
Tax Rate | 16.51 |
After-tax Cost of Debt | 4.17% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 9.267 |
Total Debt | 63,327.00 |
Total Equity | 1,779,382.80 |
Total Capital | 1,842,709.80 |
Debt Weighting | 3.44 |
Equity Weighting | 96.56 |
Wacc |
Build Up Free Cash Flow
Year A/P | 2013 Actual | 2014 Actual | 2015 Actual | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected |
Revenue | 77,849.00 | 86,833.00 | 93,580.00 | 85,320.00 | 89,950.00 | 110,360.00 | 125,843.00 | 143,015.00 | 156,555.63 | 171,378.28 | 187,604.33 | 205,366.66 | 224,810.73 |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 28,833.00 | 32,231.00 | 29,080.00 | 33,325.00 | 39,507.00 | 43,884.00 | 52,185.00 | 60,675.00 | 61,031.01 | 66,809.41 | 73,134.91 | 80,059.30 | 87,639.30 |
Capital Expenditure | -4,257.00 | -5,485.00 | -5,944.00 | -8,343.00 | -8,129.00 | -11,632.00 | -13,925.00 | -15,441.00 | -13,572.34 | -14,857.36 | -16,264.05 | -17,803.93 | -19,489.60 |
Free Cash Flow | 24,576.00 | 26,746.00 | 23,136.00 | 24,982.00 | 31,378.00 | 32,252.00 | 38,260.00 | 45,234.00 | 47,458.67 | 51,952.05 | 56,870.86 | 62,255.37 | 68,149.70 |
WACC | |||||||||||||
PV LFCF | 43,504.15 | 43,654.88 | 43,806.13 | 43,957.91 | 44,110.22 | ||||||||
SUM PV LFCF | 219,033.29 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 9.09 |
Free cash flow (t + 1) | 70,875.69 |
Terminal Value | 1,392,449.62 |
Present Value of Terminal Value | 901,269.73 |
Intrinsic Value
Enterprise Value | 1,120,303.02 |
---|---|
Net Debt | 49,751.00 |
Equity Value | 1,070,552.02 |
Shares Outstanding | 7,683.00 |
Equity Value Per Share | 139.34 |