DCF Tool

GOOGL

Alphabet Inc – All Other Telecommunications
Larry Page and Sergey Brin founded Google in September 1998. Since then, the company has grown to more than 130,000 employees worldwide, with a wide range of popular products and platforms like Search, Maps, Ads, Gmail, Android, Chrome, Google Cloud and YouTube. In October 2015, Alphabet became the parent holding company of Google.
Analysis Results
Intrinsic Value $1,037.67
Latest Price $104.89
Relative Value 90% undervalued
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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 38.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 38.0%, 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 62.2 60.3
2024 85.8 80.6
2025 118 108
2026 163 144
2027 225 192
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 6760 billion. This corresponds to a present value of 5600 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 585 billion. Adding in the terminal value gives a total present value of 6180 billion.

There are presently 5.96 billion outstanding shares, so the intrinsic value per share is 1037.67.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 164,795,000,000
Current Cash 113,762,000,000
Current Liabilities 69,300,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -18,267,000,000
Change in NCWC -2,507,000,000
EBIT 74,483,000,000
Tax Provision 11,356,000,000
Depreciation and Amortization 15,928,000,000
Capital Expenditure -31,485,000,000
Unlevered Free Cash Flow 44,560,698,239
Current Assets 188,143,000,000
Current Cash 139,649,000,000
Current Liabilities 64,254,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -15,760,000,000
Change in NCWC 3,472,000,000
EBIT 79,048,000,000
Tax Provision 14,701,000,000
Depreciation and Amortization 12,441,000,000
Capital Expenditure -24,640,000,000
Unlevered Free Cash Flow 57,513,401,437
Current Assets 174,296,000,000
Current Cash 136,694,000,000
Current Liabilities 56,834,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -19,232,000,000
Change in NCWC -6,914,000,000
EBIT 41,625,000,000
Tax Provision 7,813,000,000
Depreciation and Amortization 13,697,000,000
Capital Expenditure -22,281,000,000
Unlevered Free Cash Flow 19,363,218,855
Current Assets 152,578,000,000
Current Cash 119,675,000,000
Current Liabilities 45,221,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -12,318,000,000
Change in NCWC -4,234,000,000
EBIT 36,318,000,000
Tax Provision 5,282,000,000
Depreciation and Amortization 11,781,000,000
Capital Expenditure -23,548,000,000
Unlevered Free Cash Flow 15,475,822,056
Current Assets 135,676,000,000
Current Cash 109,140,000,000
Current Liabilities 34,620,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -8,084,000,000
Change in NCWC -6,338,000,000
EBIT 31,272,000,000
Tax Provision 4,177,000,000
Depreciation and Amortization 9,035,000,000
Capital Expenditure -25,139,000,000
Unlevered Free Cash Flow 5,088,610,145
Current Assets 124,308,000,000
Current Cash 101,871,000,000
Current Liabilities 24,183,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,746,000,000
Change in NCWC -4,065,000,000
EBIT 28,726,000,000
Tax Provision 14,531,000,000
Depreciation and Amortization 6,915,000,000
Capital Expenditure -13,184,000,000
Unlevered Free Cash Flow 3,041,817,747
Current Assets 105,408,000,000
Current Cash 86,333,000,000
Current Liabilities 16,756,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,319,000,000
Change in NCWC 1,356,000,000
EBIT 23,514,000,000
Tax Provision 4,672,000,000
Depreciation and Amortization 6,144,000,000
Capital Expenditure -10,212,000,000
Unlevered Free Cash Flow 16,253,039,006
Current Assets 90,114,000,000
Current Cash 73,066,000,000
Current Liabilities 19,310,000,000
Current Debt 3,225,000,000
Non-Cash Working Capital (NCWC) 963,000,000
Change in NCWC -531,000,000
EBIT 19,133,000,000
Tax Provision 3,303,000,000
Depreciation and Amortization 5,063,000,000
Capital Expenditure -9,915,000,000
Unlevered Free Cash Flow 10,534,067,019
Current Assets 80,685,000,000
Current Cash 64,395,000,000
Current Liabilities 16,805,000,000
Current Debt 2,009,000,000
Non-Cash Working Capital (NCWC) 1,494,000,000
Change in NCWC 224,000,000
EBIT 16,496,000,000
Tax Provision 3,331,000,000
Depreciation and Amortization 4,979,000,000
Capital Expenditure -10,959,000,000
Unlevered Free Cash Flow 7,556,259,574
Current Assets 72,886,000,000
Current Cash 58,717,000,000
Current Liabilities 15,908,000,000
Current Debt 3,009,000,000
Non-Cash Working Capital (NCWC) 1,270,000,000
Change in NCWC 692,000,000
EBIT 13,966,000,000
Tax Provision 2,282,000,000
Depreciation and Amortization 3,939,000,000
Capital Expenditure -7,358,000,000
Unlevered Free Cash Flow 9,040,434,050
Current Assets 60,454,000,000
Current Cash 48,088,000,000
Current Liabilities 14,337,000,000
Current Debt 2,549,000,000
Non-Cash Working Capital (NCWC) 578,000,000
Change in NCWC 141,000,000
EBIT 12,760,000,000
Tax Provision 2,598,000,000
Depreciation and Amortization 2,962,000,000
Capital Expenditure -3,273,000,000
Unlevered Free Cash Flow 10,113,496,190

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