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Major Indexes

Discounted Cash Flow (DCF) Analysis Levered


NetEase Inc.

NetEase Inc. (NTES)

$372.25
-29.51 (-7.35%)

Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 1,516.021,890.933,512.975,497.108,176.939,718.2914,278.1120,977.3930,819.9945,280.7366,526.44
Revenue (%)
Operating Cash Flow 863.22948.111,244.292,230.171,797.291,941.715,354.297,866.5211,557.5016,980.2724,947.42
Operating Cash Flow (%)
Capital Expenditure -35.47-88.87-133.49-163.81-380.23-559.77-576.84-847.49-1,245.13-1,829.34-2,687.67
Capital Expenditure (%)
Free Cash Flow 827.75859.241,110.802,066.361,417.061,381.944,777.457,019.0410,312.3715,150.9322,259.75

Weighted Average Cost Of Capital

Share price $ 372.25
Diluted Shares Outstanding 468.21
Cost of Debt
Tax Rate 28.62
After-tax Cost of Debt -1.38
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.88
Total Debt -
Total Equity 174,290.79
Total Capital 174,290.79
Debt Weighting 0.00
Equity Weighting 100.00
Wacc

Build Up Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 1,516.021,890.933,512.975,497.108,176.939,718.2914,278.1120,977.3930,819.9945,280.7366,526.44
Operating Cash Flow 863.22948.111,244.292,230.171,797.291,941.715,354.297,866.5211,557.5016,980.2724,947.42
Capital Expenditure -35.47-88.87-133.49-163.81-380.23-559.77-576.84-847.49-1,245.13-1,829.34-2,687.67
Free Cash Flow 827.75859.241,110.802,066.361,417.061,381.944,777.457,019.0410,312.3715,150.9322,259.75
WACC
PV LFCF 4,029.965,437.927,337.809,901.4513,360.77
SUM PV LFCF 31,756.70

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.88
Free cash flow (t + 1) 19,974.36
Terminal Value 409,310.67
Present Value of Terminal Value 267,493.05

Intrinsic Value

Enterprise Value 294,964.58
Net Debt -7,928.18
Equity Value 302,892.75
Shares Outstanding 468.21
Equity Value Per Share 746.90