DCF Tool

BIDU

Baidu Inc – All Other Telecommunications
Founded in 2000, Baidu's mission is to make the complicated world simpler through technology. Baidu is a leading AI company with strong Internet foundation.
Analysis Results
Intrinsic Value $105.92
Latest Price $126.08
Relative Value 19% overvalued
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Cash Flow (Billions)
Analysis Parameters
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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 5.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 5.4%, 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)
2023 1.31 1.23
2024 1.38 1.22
2025 1.46 1.2
2026 1.54 1.19
2027 1.62 1.17
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 35.4 billion. This corresponds to a present value of 24.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.01 billion. Adding in the terminal value gives a total present value of 30.0 billion.

There are presently 284.0 million outstanding shares, so the intrinsic value per share is 105.92.

Financial Statements

The following data was to determine the past cash flows.

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

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