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Discounted Cash Flow (DCF) Analysis Unlevered


Oracle Corporation

Oracle Corporation (ORCL)

Technology

Operating Data

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 37,180.0038,276.8138,227.0537,049.6637,794.3639,385.5039,507.5939,918.4740,333.6240,753.0941,176.93
Revenue (%)
EBITDA 17,627.0417,526.9516,839.0215,416.3615,930.3217,235.0917,268.7717,592.0717,775.0317,959.8918,146.67
EBITDA (%)
EBIT 14,697.2514,617.9113,979.6312,908.1013,477.4714,450.5414,349.1614,701.9714,854.8715,009.3615,165.46
EBIT (%)
Depreciation 2,929.782,909.042,859.382,508.262,452.852,784.552,919.612,890.102,920.152,950.522,981.21
Depreciation (%)

Balance Sheet Data

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
Total Cash 32,216.4738,820.3454,366.5156,126.5366,079.6567,262.5537,828.5252,644.4853,191.9853,745.1854,304.13
Total Cash (%)
Account Receivables 6,049.196,086.015,619.385,383.325,298.775,135.875,132.045,784.195,844.345,905.125,966.54
Account Receivables (%)
Inventories 241.67187.56313.46211.18---251.49254.10256.74259.41
Inventories (%)
Accounts Payable 420.13470.80806.59503.88597.15527.77580.76582.81588.87595.00601.18
Accounts Payable (%)
Capital Expenditure -650.65-581.81-1,391.46-1,189.29-2,022.00-1,736.90-1,659.32-1,373.20-1,387.48-1,401.91-1,416.49
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 54.54
Diluted Shares Outstanding 3,634.00
Cost of Debt
Tax Rate 9.66
After-tax Cost of Debt -0.43
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.10
Total Debt 51,673.00
Total Equity 198,198.36
Total Capital 249,871.36
Debt Weighting 20.68
Equity Weighting 79.32
Wacc

Build Up Free Cash

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 37,180.0038,276.8138,227.0537,049.6637,794.3639,385.5039,507.5939,918.4740,333.6240,753.0941,176.93
EBITDA 17,627.0417,526.9516,839.0215,416.3615,930.3217,235.0917,268.7717,592.0717,775.0317,959.8918,146.67
EBIT 14,697.2514,617.9113,979.6312,908.1013,477.4714,450.5414,349.1614,701.9714,854.8715,009.3615,165.46
Tax Rate 21.39%20.06%22.57%22.21%19.08%71.13%9.66%26.58%26.58%26.58%26.58%
EBIAT 11,553.2811,685.5810,825.1210,041.5110,906.594,172.0912,963.1310,793.6210,905.8711,019.2911,133.89
Depreciation 2,929.782,909.042,859.382,508.262,452.852,784.552,919.612,890.102,920.152,950.522,981.21
Accounts Receivable --36.83466.64236.0684.55162.903.83-652.15-60.16-60.78-61.41
Inventories -54.11-125.91102.28211.18----2.62-2.64-2.67
Accounts Payable -50.67335.79-302.7293.28-69.3953.002.056.066.126.19
Capital Expenditure --68.84809.66-202.17832.70-285.10-77.58-286.1214.2814.4314.58
UFCF 14,483.0714,593.7415,170.6812,383.2314,581.166,765.0615,861.9912,747.4913,783.6013,926.9514,071.79
WACC
PV UFCF 10,585.0910,429.609,602.768,841.47
SUM PV UFCF 89,235.82

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.74
Free cash flow (t + 1) 14,634.66
Terminal Value 254,959.20
Present Value of Terminal Value 160,193.87

Intrinsic Value

Enterprise Value 249,429.69
Net Debt 13,844.48
Equity Value 235,585.21
Shares Outstanding 3,634.00
Equity Value Per Share 64.83