Discounted Cash Flow (DCF) Analysis Levered

Microsoft Corporation (MSFT)

Technology

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
Revenue	77,849.00	86,832.77	93,579.68	91,155.97	96,570.63	110,360.92	125,844.55	136,528.76	148,120.05	160,695.44	174,338.48
Revenue (%)
Operating Cash Flow	28,835.27	32,501.51	29,664.76	33,326.62	39,507.05	43,879.50	52,187.74	51,662.48	56,048.63	60,807.16	65,969.68
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	-11,181.71	-12,131.03	-13,160.96	-14,278.32
Capital Expenditure (%)
Free Cash Flow	24,576.93	27,013.68	23,722.45	24,985.85	31,375.80	32,247.46	38,256.74	40,480.78	43,917.59	47,646.20	51,691.36

Weighted Average Cost Of Capital

Share price	$ 151.04
Diluted Shares Outstanding	7,673.00
Cost of Debt
Tax Rate	10.18
After-tax Cost of Debt	-0.46
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.14
Total Debt	72,850.00
Total Equity	1,158,929.92
Total Capital	1,231,779.92
Debt Weighting	5.91
Equity Weighting	94.09
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
Revenue	77,849.00	86,832.77	93,579.68	91,155.97	96,570.63	110,360.92	125,844.55	136,528.76	148,120.05	160,695.44	174,338.48
Operating Cash Flow	28,835.27	32,501.51	29,664.76	33,326.62	39,507.05	43,879.50	52,187.74	51,662.48	56,048.63	60,807.16	65,969.68
Capital Expenditure	-4,258.34	-5,487.83	-5,942.31	-8,340.77	-8,131.25	-11,632.04	-13,930.99	-11,181.71	-12,131.03	-13,160.96	-14,278.32
Free Cash Flow	24,576.93	27,013.68	23,722.45	24,985.85	31,375.80	32,247.46	38,256.74	40,480.78	43,917.59	47,646.20	51,691.36
WACC
PV LFCF								32,450.41	31,520.69	30,617.60	29,740.38
SUM PV LFCF											193,094.73

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.69
Free cash flow (t + 1)	53,868.12
Terminal Value	700,495.68
Present Value of Terminal Value	403,026.87

Intrinsic Value

Enterprise Value	599,661.86
Net Debt	-60,973.10
Equity Value	660,634.96
Shares Outstanding	7,673.00
Equity Value Per Share	85.53

Financial Modeling Prep is a new concept that informs you about stock markets information (news, currencies and stock prices). We always strive to give you the best and most updated information. We also gives you free financial modeling methodology through our academy. Most investment banking firms follow our guidelines to get discounted cash flow statement of companies to see if they are undervalued, overvalued or simply at par value. You can find all financial models and valuation techniques that is used in corporate finance to get companies intrinsic valuation. Most private equity firm use financial modeling for decision making when it comes to hold, buy or sell a particular stock.

You can support our API by donating via Paypal !