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    DCF Guide Example2020

    Uploaded by

    jam man
    The document presents cash flow projections for two scenarios and calculates the present value for each. It then shows Apple's unlevered free cash flows from 2017 to 2022 and calculates the present value. Finally, it derives Apple's enterprise value and equity value based on the cash flows, growth rates, and discount rates.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    DCF Guide Example2020

    Uploaded by

    jam man
    55 views6 pages
    The document presents cash flow projections for two scenarios and calculates the present value for each. It then shows Apple's unlevered free cash flows from 2017 to 2022 and calculates the present value. Finally, it derives Apple's enterprise value and equity value based on the cash flows, growth rates, and discount rates.

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    DCF-guide-example2020

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    © © All Rights Reserved

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    The document presents cash flow projections for two scenarios and calculates the present value for each. It then shows Apple's unlevered free cash flows from 2017 to 2022 and calculates the present value. Finally, it derives Apple's enterprise value and equity value based on the cash flows, growth rates, and discount rates.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    55 views6 pages

    DCF Guide Example2020

    Uploaded by

    jam man
    The document presents cash flow projections for two scenarios and calculates the present value for each. It then shows Apple's unlevered free cash flows from 2017 to 2022 and calculates the present value. Finally, it derives Apple's enterprise value and equity value based on the cash flows, growth rates, and discount rates.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 6

    When cash flows are the same in each period

    Cash flows 1,000.0


    t (periods) 5
    r (discount rate) 25%
    Present value 2,689.3

    When cash flows are not the same in each period


    Period (t) 1 2 3 4
    Cash flows 1,000.0 1,245.0 1,258.0 1,568.0
    Discount rate (r) 25% 25% 25% 25%
    Present value 800.0 796.8 644.1 642.3

    Sum of present values 3,504.1

    Apple Unlevered Free Cash Flows


    Period (t) 2017A 2018P 2019P

    EBITDA 74,467 78,190 82,099


    EBIT 67,343 70,710 74,245
    Tax rate 26% 26% 26%

    EBIT (1-t) 49,834 52,325 54,941


    D&A 7,124 7,480 7,854
    NWC (1,032) (929) (836)
    Capital expenditures (9,836) (10,278) (10,741)
    Unlevered free cash flows (UFCF) 46,089 48,598 51,219

    Discount rate (r) 10% 10%


    PV of UFCFs 44,180 42,329

    Stage 1: Sum of present values 203,010

    Terminal value - growth in perpetuity approach Terminal value - EBITDA multi


    Long term growth rate 4% EBITDA multiple
    2022 FCF x (1+g) 62,220 Terminal value in 2022
    Terminal value in 2022 1,037,004 Stage 2: PV of TV
    Stage 2: PV of TV 643,898

    Enterprise value (stage 1 + 2) 846,908

    Net debt

    Data as of: 9/24/2016


    Commercial paper 8,105
    Current portion of long term debt 3,500
    Long term debt 75,427
    Gross debt 87,032

    Cash and equivalents 20,484


    Short term marketable securities 46,671 Equity value
    Long term marketable securities 170,430
    Nonoperating assets 237,585

    Net debt (150,553.0)

    Present value 0.0

    When cash flows are not the same in each period


    Period (t) 1 2 3
    Cash flows 1,000.0 1,245.0 1,258.0
    Discount rate ( 25% 25% 25%
    Present value 800.0 796.8 644.1

    Sum of present 3,504.1

    Apple Unlevered Free Cash Flows


    Period (t) 2017A 2018P
    5 Present val
    1,895.0
    25% When cash flows are not
    621.0 Period (t)
    Cash flows
    Discount rat
    Present val

    2020P 2021P 2022P Sum of pres

    86,204 90,515 95,040 Apple Unlevered Free Ca


    77,957 81,855 85,948 Period (t)
    26% 26% 26%

    57,689 60,573 63,602


    8,247 8,659 9,092
    (753) (677) (610)
    (11,224) (11,729) (12,257)
    53,959 56,826 59,827

    10% 10% 10%


    40,540 38,813 37,148

    rminal value - EBITDA multiple approach


    ITDA multiple 9.0x
    rminal value in 2022 855,363
    age 2: PV of TV 531,113
    approach approach
    #DIV/0! #DIV/0!

    Present val 0.0

    When cash flows are not the same in each period


    Period (t) 1 2 3 4 5
    Cash flows 1,000.0 1,245.0 1,258.0 1,568.0 1,895.0
    Discount rat 25% 25% 25% 25% 25%
    Present val 800.0 796.8 644.1 642.3 621.0

    Sum of pres 3,504.1

    2017A 2018P 2019P 2020P

    4 5
    1,568.0 1,895.0
    25% 25%
    642.3 621.0

    2019P 2020P 2021P 2022P


    0.0

    When cash flows are not the same in each period


    1 2 3 4 5
    1,000.0 1,245.0 1,258.0 1,568.0 1,895.0
    25% 25% 25% 25% 25%
    800.0 796.8 644.1 642.3 621.0

    3,504.1

    Apple Unlevered Free Cash Flows


    2017A 2018P 2019P 2020P 2021P 2022P

    Present val 0.0

    When cash flows are not the same in each period


    Period (t) 1 2 3 4 5
    Cash flows 1,000.0 1,245.0 1,258.0 1,568.0 1,895.0
    Discount rat 25% 25% 25% 25% 25%
    Present val 800.0 796.8 644.1 642.3 621.0

    Sum of pres 3,504.1

    Apple Unlevered Free Cash Flows


    Period (t) 2017A 2018P 2019P 2020P 2021P 2022P
    2021P 2022P

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