DCF Tool

BIDU

Baidu Inc
baidu was founded in 2000 by internet pioneer robin li, creator of visionary search technology hyperlink analysis, with the mission of providing people with the best way to find information and connect users with services. over the past decade we have strived to fulfill this mission by listening carefully to our users’ needs and wants. to provide intelligent, relevant search results for the tens of billions of queries that are entered into our search platform every day, we focus on powering the best technology optimized for up-to-date local tastes and preferences. our deep understanding of chinese language and culture is central to our success and this kind of knowledge allows us to tailor our search technology for our users’ needs. we provide our users with many channels to find and share information. in addition to our core web search product, we power many popular community-based products, such as baidu postbar, the world’s first and largest chinese-language query-based searchable o
Analysis Results
Intrinsic Value $530.89
Latest Price $97.54
Relative Value 82% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 22.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 22.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 3.21 3.03
2025 3.94 3.51
2026 4.85 4.07
2027 5.96 4.71
2028 7.32 5.46
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 185 billion. This corresponds to a present value of 131 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 20.8 billion. Adding in the terminal value gives a total present value of 151 billion.

There are presently 285.0 million outstanding shares, so the intrinsic value per share is 530.89.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 32,522,811,383
Current Cash 27,387,920,566
Current Liabilities 10,798,468,884
Current Debt 2,696,403,853
Non-Cash Working Capital (NCWC) -2,967,174,214
Change in NCWC -34,174,214
EBIT 2,550,495,777
Tax Provision 515,410,039
Depreciation and Amortization 2,105,709,201
Capital Expenditure -1,595,384,050
Unlevered Free Cash Flow 2,657,301,564
Current Assets 30,860,000,000
Current Cash 25,227,000,000
Current Liabilities 11,546,000,000
Current Debt 2,980,000,000
Non-Cash Working Capital (NCWC) -2,933,000,000
Change in NCWC 1,241,000,000
EBIT 2,030,000,000
Tax Provision 374,000,000
Depreciation and Amortization 1,007,000,000
Capital Expenditure -1,217,000,000
Unlevered Free Cash Flow 2,543,114,597
Current Assets 33,474,000,000
Current Cash 28,261,000,000
Current Liabilities 11,689,000,000
Current Debt 2,302,000,000
Non-Cash Working Capital (NCWC) -4,174,000,000
Change in NCWC 736,000,000
EBIT 1,505,000,000
Tax Provision 500,000,000
Depreciation and Amortization 997,000,000
Capital Expenditure -1,764,000,000
Unlevered Free Cash Flow 1,028,997,043
Current Assets 28,099,000,000
Current Cash 24,856,000,000
Current Liabilities 10,481,000,000
Current Debt 2,328,000,000
Non-Cash Working Capital (NCWC) -4,910,000,000
Change in NCWC -656,000,000
EBIT 1,853,000,000
Tax Provision 623,000,000
Depreciation and Amortization 968,000,000
Capital Expenditure -817,000,000
Unlevered Free Cash Flow 1,021,800,791
Current Assets 23,782,000,000
Current Cash 21,025,000,000
Current Liabilities 8,243,000,000
Current Debt 1,232,000,000
Non-Cash Working Capital (NCWC) -4,254,000,000
Change in NCWC 259,000,000
EBIT 726,000,000
Tax Provision 279,000,000
Depreciation and Amortization 2,753,000,000
Capital Expenditure -2,746,000,000
Unlevered Free Cash Flow 992,000,000
Current Assets 22,557,000,000
Current Cash 20,255,000,000
Current Liabilities 8,269,000,000
Current Debt 1,454,000,000
Non-Cash Working Capital (NCWC) -4,513,000,000
Change in NCWC 1,933,000,000
EBIT 2,248,000,000
Tax Provision 690,000,000
Depreciation and Amortization 2,355,000,000
Capital Expenditure -3,253,000,000
Unlevered Free Cash Flow 2,892,682,939
Current Assets 23,235,000,000
Current Cash 18,262,000,000
Current Liabilities 12,611,000,000
Current Debt 1,192,000,000
Non-Cash Working Capital (NCWC) -6,446,000,000
Change in NCWC -3,618,588,000
EBIT 2,400,000,000
Tax Provision 460,000,000
Depreciation and Amortization 1,806,000,000
Capital Expenditure -2,145,000,000
Unlevered Free Cash Flow -1,895,202,678
Current Assets 14,368,267,000
Current Cash 12,939,871,000
Current Liabilities 6,640,076,000
Current Debt 2,384,268,000
Non-Cash Working Capital (NCWC) -2,827,412,000
Change in NCWC -561,609,000
EBIT 1,299,633,000
Tax Provision 419,645,000
Depreciation and Amortization 1,199,418,000
Capital Expenditure -1,513,691,000
Unlevered Free Cash Flow 162,771,514
Current Assets 12,077,195,000
Current Cash 10,486,458,000
Current Liabilities 4,029,578,000
Current Debt 173,038,000
Non-Cash Working Capital (NCWC) -2,265,803,000
Change in NCWC -689,040,000
EBIT 1,802,375,000
Tax Provision 845,098,000
Depreciation and Amortization 904,769,000
Capital Expenditure -1,195,329,000
Unlevered Free Cash Flow 562,480,684
Current Assets 10,611,586,000
Current Cash 9,294,840,000
Current Liabilities 3,267,062,000
Current Debt 373,553,000
Non-Cash Working Capital (NCWC) -1,576,763,000
Change in NCWC -578,744,000
EBIT 2,059,249,000
Tax Provision 359,599,000
Depreciation and Amortization 640,218,000
Capital Expenditure -1,030,720,000
Unlevered Free Cash Flow 772,581,707
Current Assets 7,107,908,000
Current Cash 6,347,615,000
Current Liabilities 1,822,493,000
Current Debt 64,181,000
Non-Cash Working Capital (NCWC) -998,019,000
Change in NCWC -381,045,000
EBIT 1,847,781,000
Tax Provision 302,118,000
Depreciation and Amortization 438,077,000
Capital Expenditure -457,781,000
Unlevered Free Cash Flow 1,169,685,976
Current Assets 5,565,575,000
Current Cash 5,214,179,000
Current Liabilities 1,322,053,000
Current Debt 353,683,000
Non-Cash Working Capital (NCWC) -616,974,000
Change in NCWC -212,170,000
EBIT 1,726,632,000
Tax Provision 252,670,000
Depreciation and Amortization 243,229,000
Capital Expenditure -411,933,000
Unlevered Free Cash Flow 1,118,604,238

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.