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DCF Template

The document provides financial projections and data for Apple Inc. (AAPL) for the years 2015 to 2022, including cash flow, income statement, and balance sheet information. It outlines key metrics such as free cash flow, revenue, net income, and market capitalization, along with a discounted cash flow valuation. The fair value of equity is calculated based on the projections, indicating whether the stock is overvalued or undervalued.

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juliano7597
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23 views9 pages

DCF Template

The document provides financial projections and data for Apple Inc. (AAPL) for the years 2015 to 2022, including cash flow, income statement, and balance sheet information. It outlines key metrics such as free cash flow, revenue, net income, and market capitalization, along with a discounted cash flow valuation. The fair value of equity is calculated based on the projections, indicating whether the stock is overvalued or undervalued.

Uploaded by

juliano7597
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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First Year of Projections 2019

Company Ticker Symbol AAPL


Personal Required Rate of Return 8.4%
Shares Outstanding 4,601 best from recent company filing
Perpetual Growth Rate 2.50% generally somewhere between 2% - 3%
Market Cap $953

Cash Flow Statement Data 2015 2016 2017


Total Cash Flow From Operating Activities 81,266 66,231 $64,225
Capital Expenditures -11,247 -12,734 -$12,451
Free Cash Flow $70,019 $53,497 $51,774

Income Statement Data 2015 2016 2017


Revenue 233,715 215,639 229,234
Interest Expense 733 1,456 2,323
Income Before Tax 72,515 61,372 64,089
Income Tax Expense 19,121 15,685 15,738
Net Income 53,394 45,687 48,351
Net Profit Margins 22.85% 21.19% 21.09%

FCF to Profit Margins (%) 131.14% 117.09% 107.08%

Balance Sheet Data 2015 2016 2017


Short/Current Long Term Debt 2,513 3,500 6,496
Long Term Debt 53,329 75,427 97,207
Cash & Equivalents & Short Term Invest
Net Borrowings

Instructions
0 https://finance.yahoo.com/ Search individual stock and go to Financials
1 Fill in Step 1 - Key Data based on Income Statement, Balance Sheet and Cash Flow Statement
2 Pay attention to the consistency of number you plugged in, it should be in thousands/millions all across the sheets
3 Capital expenditures are negative, perpetual growth rate is between 2%-3% and shares ous can be from the latest compan
4 If you are not sure about personal required rate of return, use CAPM https://youtu.be/-fCYZjNA7Ps
5 In Step 2, use revenues/net income/free cash flow data for DCF projections, if you are not sure where to start, try free cash
6 Terminal Growth rate is the same as Perpetual growth rate from Step 1
7 Go to Results -DCF Calculation to cross check if the numbers match Step 1 and Step 2
8 Fair value of Equity should give you the fair value from your DCF analysis
9 If the stock price is higher than the fair value of your DCF analysis, then it is overvalued, vice versa.
10 Feel free to apply margin of safety to your estimated fair value, buy low and sell high
mpany filing
e between 2% - 3%

2018
$77,434
-$13,313 enter negtive numbers
$64,121

2018
265,595
3,240
72,903
13,372
59,531
22.41%

107.71%

2018 Most Recent Balance Sheet


8,784 10,505
93,735 90,201
80,092
20,614

/millions all across the sheets


es ous can be from the latest company filing
s://youtu.be/-fCYZjNA7Ps
e not sure where to start, try free cash flow

ed, vice versa.


Free Cash Flow Projections
How Many Years to Forecast? 4
Do You Have Any Projections You Want to Use? Yes
How Many Years Do You Have? (Whole # between 0 - 10) 4
How do we want to project FCF - start with Revenue, Net
Income or FCF? Free Cash Flow

Full Free Cash Flow Numbers Year


2019 Free Cash Flow Number 57,818 1
2020 Free Cash Flow Number 60,597 2
2021 Free Cash Flow Number 62,415 3
2022 Free Cash Flow Number 64,287 4

Terminal Growth Rate (%) 2.50% from Step 1


Reference Data
2015 Free Cash Flow 70,019
2016 Free Cash Flow 53,497
2017 Free Cash Flow 51,774
2018 Free Cash Flow 64,121

2019 Free Cash Flow 57,818


2020 Free Cash Flow 60,597
Growth Rate (%) 2021 Free Cash Flow 62,415
2022 Free Cash Flow 64,287

2015 Net Profit Margins 22.85%


2016 Net Profit Margins 21.19%
2017 Net Profit Margins 21.09%
from Step 1 2018 Net Profit Margins 22.41%
Average Net Profit Margins 21.88%
2015 FCF to Profit Margins (%) 131.14%
2016 FCF to Profit Margins (%) 117.09%
2017 FCF to Profit Margins (%) 107.08%
2018 FCF to Profit Margins (%) 107.71%
Average FCF to Profit Margins 115.76%
Discounted Free Cash Flow Valuation 1
2017A 2018A 2019E
Free Cash Flow $51,774 $64,121 $57,818
Discount Factor 1.08
PV of Future Cash Flow $53,337
Required Return 8.40%
Perpetual Growth 2.50%
Today’s Company Value $1,009,341 988,727 Today's Equity Value (after debt)
Shares Out 4,601 4,601
Fair Value of Company $219 $215 Fair Value of Equity
2 3 4 4 4 4 4 4
2020E 2021E 2022E
$60,597 $62,415 $64,287
1.18 1.27 1.38
$51,570 $49,001 $46,560

Value (after debt)


4 4
Terminal Value
1,116,858 ###
1.38
$808,874

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