DCF Tool

WB

Weibo Corp – All Other Telecommunications
Weibo is a leading social media for people to create, share and discover content online. Weibo combines the means of public self-expression in real time with a powerful platform for social interaction, content aggregation and content distribution. Any user can create and post a feed and attach multi-media and long-form content. User relationships on Weibo may be asymmetric; any user can follow any other user and add comments to a feed while reposting. This simple, asymmetric and distributed nature of Weibo allows an original feed to become a live viral conversation stream.
Analysis Results
Intrinsic Value $328.11
Latest Price $19.13
Relative Value 94% 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 26.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 26.6%, 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)
2022 0.731 0.694
2023 0.925 0.834
2024 1.17 1.0
2025 1.48 1.21
2026 1.88 1.45
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 56.3 billion. This corresponds to a present value of 41.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.19 billion. Adding in the terminal value gives a total present value of 46.5 billion.

There are presently 142.0 million outstanding shares, so the intrinsic value per share is 328.11.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,802,780,000
Current Cash 3,134,765,000
Current Liabilities 2,159,019,000
Current Debt 896,541,000
Non-Cash Working Capital (NCWC) 405,537,000
Change in NCWC 26,240,000
EBIT 711,629,000
Tax Provision 138,841,000
Depreciation and Amortization 61,232,000
Capital Expenditure -35,094,000
Unlevered Free Cash Flow 584,598,878
Current Assets 4,834,559,000
Current Cash 3,496,892,000
Current Liabilities 958,370,000
Current Debt 0
Non-Cash Working Capital (NCWC) 379,297,000
Change in NCWC -51,806,000
EBIT 517,232,000
Tax Provision 61,316,000
Depreciation and Amortization 36,081,000
Capital Expenditure -34,828,000
Unlevered Free Cash Flow 382,312,145
Current Assets 3,636,178,000
Current Cash 2,404,220,000
Current Liabilities 800,855,000
Current Debt 0
Non-Cash Working Capital (NCWC) 431,103,000
Change in NCWC 417,714,000
EBIT 584,386,000
Tax Provision 109,564,000
Depreciation and Amortization 29,565,000
Capital Expenditure -21,746,000
Unlevered Free Cash Flow 903,630,841
Current Assets 2,469,098,000
Current Cash 1,825,865,000
Current Liabilities 629,844,000
Current Debt 0
Non-Cash Working Capital (NCWC) 13,389,000
Change in NCWC 242,576,000
EBIT 619,875,000
Tax Provision 96,222,000
Depreciation and Amortization 19,847,000
Capital Expenditure -28,350,000
Unlevered Free Cash Flow 764,770,567
Current Assets 2,048,372,000
Current Cash 1,792,683,000
Current Liabilities 484,876,000
Current Debt 0
Non-Cash Working Capital (NCWC) -229,187,000
Change in NCWC -152,367,000
EBIT 408,584,000
Tax Provision 66,746,000
Depreciation and Amortization 15,328,000
Capital Expenditure -20,454,000
Unlevered Free Cash Flow 185,709,488
Current Assets 597,237,000
Current Cash 395,954,000
Current Liabilities 278,103,000
Current Debt 0
Non-Cash Working Capital (NCWC) -76,820,000
Change in NCWC -30,570,000
EBIT 140,850,000
Tax Provision 4,316,000
Depreciation and Amortization 13,982,000
Capital Expenditure -13,253,000
Unlevered Free Cash Flow 105,481,553
Current Assets 498,404,000
Current Cash 335,879,000
Current Liabilities 208,775,000
Current Debt 0
Non-Cash Working Capital (NCWC) -46,250,000
Change in NCWC -69,992,000
EBIT 37,497,000
Tax Provision 2,591,000
Depreciation and Amortization 20,950,000
Capital Expenditure -10,858,000
Unlevered Free Cash Flow -25,044,509

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