Apple DCF
Need help/sanity check on my practice DCF model for Apple. I just inputted a 10% WACC and 3% growth rate for the sake of time. Even if I assume JUST 3% revenue growth on the IS (last FY I used historically was 2017 $230M Revenue and $61M EBIT), my Perpetuity TV ($2.3B) is still 2x larger than my Exit Multiple TV ($1.1B). Both arrived at $718/share and $230/share respectively, so I clearly got into trouble with the Perpetuity method since the Exit Multiple method is closer to Apple's current share ($168/share as of Dec 7 2018).
Sorry, but I'm going to provide more numbers: I calculated UFCF $155B in my fifth and final year (t) which generates $159B in year (t+1). My stage 1 FCF (2018-2022) equals $560M, so I obtained a $2.8B Enterprise value (with 5.3 million diluted shares). Net debt is -$65B, so Equity value is $2.9B which is too high.
Need assistance! Will provide more data if needed. Thanks in advance!
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