Operating Data Microsoft C

Year A / P	2012 Actual	2013 Actual	2014 Actual	2015 Actual	2016 Actual	2017 Projected	2018 Projected	2019 Projected	2020 Projected	2021 Projected
Revenue	77,849	86,833	93,580	85,320	89,950	93,548	97,290	101,182	105,229	109,438
Revenue (%)
EBITDA	31,236	33,629	25,245	27,616	34,149	32,929	34,246	35,616	37,041	38,522
EBITDA (%)
EBIT	27,481	28,417	19,288	20,994	25,371	26,381	27,436	28,533	29,675	30,861
EBIT (%)
Depreciation	3,755	5,212	5,957	6,622	8,778	6,548	6,810	7,083	7,366	7,661
Depreciation (%)

Year A / P	2012 Actual	2013 Actual	2014 Actual	2015 Actual	2016 Actual
Revenue	77,849	86,833	93,580	85,320	89,950
Revenue (%)
EBITDA	31,236	33,629	25,245	27,616	34,149
EBITDA (%)
EBIT	27,481	28,417	19,288	20,994	25,371
EBIT (%)
Depreciation	3,755	5,212	5,957	6,622	8,778
Depreciation (%)

Year A / P	2017 Projected	2018 Projected	2019 Projected	2020 Projected	2021 Projected
Revenue	93,548	97,290	101,182	105,229	109,438
Revenue (%)
EBITDA	32,929	34,246	35,616	37,041	38,522
EBITDA (%)
EBIT	26,381	27,436	28,533	29,675	30,861
EBIT (%)
Depreciation	6,548	6,810	7,083	7,366	7,661
Depreciation (%)

Balance Sheet Data Microsoft C

Year A / P	2012 Actual	2013 Actual	2014 Actual	2015 Actual	2016 Actual	2017 Projected	2018 Projected	2019 Projected	2020 Projected	2021 Projected
Cash	77,022	85,709	96,526	113,240	132,981	108,703	113,051	117,573	122,276	127,167
Cash (%)
AccountReceivable	17,486	19,544	17,908	18,277	19,792	20,113	20,917	21,754	22,624	23,529
AccountReceivable (%)
Inventories	1,938	2,660	2,902	2,251	2,181	2,526	2,627	2,732	2,841	2,955
Inventories (%)
AccountsPayable	4,828	7,432	6,591	6,898	7,390	7,110	7,394	7,690	7,997	8,317
AccountsPayable (%)
AccruedLiabilities	4,117	4,797	5,096	5,264	5,819	5,426	5,643	5,869	6,103	6,347
AccruedLiabilities (%)
CapitalExpenditure	-4,257	-5,485	-5,944	-8,343	-8,129	-6,923	-7,199	-7,487	-7,787	-8,098
CapitalExpenditure (%)

Year A / P	2012 Actual	2013 Actual	2014 Actual	2015 Actual	2016 Actual
Cash	77,022	85,709	96,526	113,240	132,981
Cash (%)
AccountReceivable	17,486	19,544	17,908	18,277	19,792
AccountReceivable (%)
Inventories	1,938	2,660	2,902	2,251	2,181
Inventories (%)
AccountsPayable	4,828	7,432	6,591	6,898	7,390
AccountsPayable (%)
AccruedLiabilities	4,117	4,797	5,096	5,264	5,819
AccruedLiabilities (%)
CapitalExpenditure	-4,257	-5,485	-5,944	-8,343	-8,129
CapitalExpenditure (%)

Year A / P	2017 Projected	2018 Projected	2019 Projected	2020 Projected	2021 Projected
Cash	108,703	113,051	117,573	122,276	127,167
Cash (%)
AccountReceivable	20,113	20,917	21,754	22,624	23,529
AccountReceivable (%)
Inventories	2,526	2,627	2,732	2,841	2,955
Inventories (%)
AccountsPayable	7,110	7,394	7,690	7,997	8,317
AccountsPayable (%)
AccruedLiabilities	5,426	5,643	5,869	6,103	6,347
AccruedLiabilities (%)
CapitalExpenditure	-6,923	-7,199	-7,487	-7,787	-8,098
CapitalExpenditure (%)

Weighted Average Cost Of Capital Microsoft C

Share Price	$ 105
Diluted Shares Outstanding	8254
Cost of Debt
Tax Rate	8.4
After-tax Cost of Debt	4.0
Risk Free Rate
Market Risk Premium
Cost of Equity	11.11
Total Debt	76,073.00
Total Equity	822,360.00
Total Capital	898,433.00
Debt Weighting	8.47
Equity Weighting	91.53
Wacc

Build Up Free Cash Microsoft C

Year A / P	2012 Actual	2013 Actual	2014 Actual	2015 Actual	2016 Actual	2017 Projected	2018 Projected	2019 Projected	2020 Projected	2021 Projected
Revenue	77,849	86,833	93,580	85,320	89,950	93,548	97,290	101,182	105,229	109,438
EBITDA	31,236	33,629	25,245	27,616	34,149	32,929	34,246	35,616	37,041	38,522
EBIT	27,481	28,417	19,288	20,994	25,371	26,381	27,436	28,533	29,675	30,861
TaxesRate	19.2	20.7	34.1	15.0	8.4	19.5	19.5	19.5	19.5	19.5
EBIAT	22209.7	22547.7	12707.5	17855.2	23239.3	21246.6	22096.4	22980.3	23899.5	24855.5
Depreciation	3,755	5,212	5,957	6,622	8,778	6,548	6,810	7,083	7,366	7,661
AccountReceivable	-	-2,058	1,636	-369	-1,515	-321	-805	-837	-870	-905
Inventories	-	-722	-242	651	70	-345	-101	-105	-109	-114
AccountsPayable	-	2,604	-841	307	492	-280	284	296	308	320
AccruedLiabilities	-	680	299	168	555	-393	217	226	235	244
CapitalExpenditure	-4,257	-5,485	-5,944	-8,343	-8,129	-6,923	-7,199	-7,487	-7,787	-8,098
UFCF	25,965	29,492	19,976	27,633	31,405	25,249	28,780	29,931	31,128	32,373
WACC
PV UFCF						22,829	23,527	22,123	20,803	19,562
SUM PV UFCF										108,845

Year A / P	2012 Actual	2013 Actual	2014 Actual	2015 Actual	2016 Actual
Revenue	77,849	86,833	93,580	85,320	89,950
EBITDA	31,236	33,629	25,245	27,616	34,149
EBIT	27,481	28,417	19,288	20,994	25,371
TaxesRate	19.2	20.7	34.1	15.0	8.4
EBIAT	22209.7	22547.7	12707.5	17855.2	23239.3
Depreciation	3,755	5,212	5,957	6,622	8,778
AccountReceivable	-	-2,058	1,636	-369	-1,515
Inventories	-	-722	-242	651	70
AccountsPayable	-	2,604	-841	307	492
AccruedLiabilities	-	680	299	168	555
CapitalExpenditure	-4,257	-5,485	-5,944	-8,343	-8,129
UFCF	25,965	29,492	19,976	27,633	31,405
WACC
PV UFCF
SUM PV UFCF

Year A / P	2017 Projected	2018 Projected	2019 Projected	2020 Projected	2021 Projected
Revenue	93,548	97,290	101,182	105,229	109,438
EBITDA	32,929	34,246	35,616	37,041	38,522
EBIT	26,381	27,436	28,533	29,675	30,861
TaxesRate	19.5	19.5	19.5	19.5	19.5
EBIAT	21246.6	22096.4	22980.3	23899.5	24855.5
Depreciation	6,548	6,810	7,083	7,366	7,661
AccountReceivable	-321	-805	-837	-870	-905
Inventories	-345	-101	-105	-109	-114
AccountsPayable	-280	284	296	308	320
AccruedLiabilities	-393	217	226	235	244
CapitalExpenditure	-6,923	-7,199	-7,487	-7,787	-8,098
UFCF	25,249	28,780	29,931	31,128	32,373
WACC
PV UFCF	22,829	23,527	22,123	20,803	19,562
SUM PV UFCF					108,845

Terminal Value Microsoft C

Growth in perpetuity method:
Long term growth rate
WACC (%)	10.6
Free cash flow (t+1)	33,667.95
Terminal Value	510,120.51
Present Value of Terminal Value	308,245.79

Intrinsic Value Microsoft C

Enterprise Value	417,091
Net Debt	-56,908
Equity Value	473,999
Shares Outstanding	7,832
Equity Value Per Share	61

Results Unlevered DCF Microsoft C

${Wacc}/{Long \space Term \space Growth}$	-4 (%)	-3 (%)	-2 (%)	-1 (%)	0 (%)	1 (%)	2 (%)	3 (%)	4 (%)
8.6 (%)	42 Sell	44 Sell	46 Sell	49 Sell	53 Sell	58 Sell	63 Sell	71 Sell	83 Sell
9.1 (%)	41 Sell	43 Sell	45 Sell	47 Sell	51 Sell	55 Sell	60 Sell	66 Sell	76 Sell
9.6 (%)	40 Sell	41 Sell	43 Sell	46 Sell	48 Sell	52 Sell	56 Sell	62 Sell	70 Sell
10.1 (%)	39 Sell	40 Sell	42 Sell	44 Sell	46 Sell	50 Sell	53 Sell	58 Sell	65 Sell
10.6 (%)	38 Sell	39 Sell	41 Sell	42 Sell	45 Sell	47 Sell	51 Sell	55 Sell	61 Sell
11.1 (%)	37 Sell	38 Sell	39 Sell	41 Sell	43 Sell	46 Sell	49 Sell	52 Sell	57 Sell
11.6 (%)	36 Sell	37 Sell	38 Sell	40 Sell	42 Sell	44 Sell	47 Sell	50 Sell	54 Sell
12.1 (%)	35 Sell	36 Sell	37 Sell	39 Sell	40 Sell	42 Sell	45 Sell	48 Sell	51 Sell
12.6 (%)	34 Sell	35 Sell	36 Sell	38 Sell	39 Sell	41 Sell	43 Sell	46 Sell	49 Sell

${Wacc}/{Long \space Term \space Growth}$	-4 (%)	-3 (%)	-2 (%)	-1 (%)	0 (%)
8.6 (%)	42 Sell	44 Sell	46 Sell	49 Sell	53 Sell
9.1 (%)	41 Sell	43 Sell	45 Sell	47 Sell	51 Sell
9.6 (%)	40 Sell	41 Sell	43 Sell	46 Sell	48 Sell
10.1 (%)	39 Sell	40 Sell	42 Sell	44 Sell	46 Sell
10.6 (%)	38 Sell	39 Sell	41 Sell	42 Sell	45 Sell

${Wacc}/{Long \space Term \space Growth}$	1 (%)	2 (%)	3 (%)	4 (%)
11.1 (%)	46 Sell	49 Sell	52 Sell	57 Sell
11.6 (%)	44 Sell	47 Sell	50 Sell	54 Sell
12.1 (%)	42 Sell	45 Sell	48 Sell	51 Sell
12.6 (%)	41 Sell	43 Sell	46 Sell	49 Sell

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Discounted Cash Flow (DCF) Analysis Unlevered

Microsoft Corpo (MSFT)