Discounted Cash Flow (DCF) Analysis Levered


Microsoft Corporation

Microsoft Corporation (MSFT)

$208.9
0.2 (+0.10%)

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
Revenue 77,849.0086,832.7793,579.6891,155.9796,570.63110,360.92125,844.55143,022.34156,223.30170,642.71186,393.03
Revenue (%)
Operating Cash Flow 28,835.2732,232.3329,084.5633,326.6239,507.0543,879.5052,187.7460,670.0859,817.9065,339.0971,369.89
Operating Cash Flow (%)
Capital Expenditure -4,258.34-5,487.83-5,942.31-8,340.77-8,131.25-11,632.04-13,930.99-15,446.41-13,294.60-14,521.69-15,862.05
Capital Expenditure (%)
Free Cash Flow 24,576.9326,744.4923,142.2624,985.8531,375.8032,247.4638,256.7445,223.6646,523.3050,817.4055,507.84

Weighted Average Cost Of Capital

Weighted Average Cost Of Capital

Share price $ 208.9
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 12.259
Total Debt 72,823.00
Total Equity 1,604,978.70
Total Capital 1,673,512.70
Debt Weighting 4.10
Equity Weighting 95.90
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
Revenue 77,849.0086,832.7793,579.6891,155.9796,570.63110,360.92125,844.55143,022.34156,223.30170,642.71186,393.03
Operating Cash Flow 28,835.2732,232.3329,084.5633,326.6239,507.0543,879.5052,187.7460,670.0859,817.9065,339.0971,369.89
Capital Expenditure -4,258.34-5,487.83-5,942.31-8,340.77-8,131.25-11,632.04-13,930.99-15,446.41-13,294.60-14,521.69-15,862.05
Free Cash Flow 24,576.9326,744.4923,142.2624,985.8531,375.8032,247.4638,256.7445,223.6646,523.3050,817.4055,507.84
WACC
PV LFCF 41,564.6440,562.0139,583.56
SUM PV LFCF 195,125.81

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.93
Free cash flow (t + 1) 61,058.41
Terminal Value 769,967.37
Present Value of Terminal Value 438,268.04

Intrinsic Value

Enterprise Value 648,420.86
Net Debt 59,247.00
Equity Value 589,173.86
Shares Outstanding 7,683.00
Equity Value Per Share 71.62