See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$391.53||$580.57||$885.20||$1,150.97||$1,335.13|
|Source||Analyst x6||Analyst x8||Analyst x5||Analyst x1||Extrapolated @ (16%, capped from 38.7%)|
Discounted (@ 9.96%)
Present value of next 5 years cash flows:
Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $1,335 × (1 + 2.47%) ÷ (9.96% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$14,473 = $3,119 + $11,354
Value = Total value / Shares Outstanding ($14,473 / 221)Discount to Share Price
Value per share:
Current discount (share price of $102.72): -57.01%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 9.96% = 2.47% + (0.995 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($22,526,537,903).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.995 = 0.995 (1 + (1- 35%) (0%))
Levered Beta used in calculation = 0.995
Mr. Gaofei Wang has been the Chief Executive Officer of Weibo Corporation since February 2014. Mr. Wang served as Senior Vice President of SINA Corp since May 2013. He served as Vice President at SINA Corp and served as its General Manager of SINA Mobile from November 2006 to November 2012. He actively involved in the product and business development. He served as General Manager of Weibo since December 2012. Mr. Wang served as General Manager of Sina's Wireless Industry Department. He has been an Independent Director of Jiayuan.com International Ltd. since October 30, 2014. Mr. Wang joined SINA in August 2000 and worked in the Research and Development center until 2004 when he joined SINA Mobile. He holds a B.S. in Computer Science from Peking University and Executive M.B.A. from Guanghua School of Management of Peking University.
Average tenure and age of the Weibo management team in years:
Average tenure and age of the Weibo board of directors in years:
Weibo Corporation operates as a social media platform for people to create, distribute, and discover Chinese-language content. It operates through two segments, Advertising and Marketing Services, and Other Services. The company offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; discovery products to help users discover content on its platform; and notifications to notify users on Weibo account activities through SMS or push notification on their device. It also provides third-party online games, including role playing, card, strategy, and real life simulation games, as well as various services and functions to VIP members; and develops mobile apps comprising Weibo Headlines that aggregates news and information from Weibo and other online sources, as well as Weibo Weather, a weather app. In addition, the company offers advertising and marketing solutions, such as social display ads; and promoted feeds, accounts, and trends to enable its customers to promote their brands and conduct marketing activities. Further, it provides products that allow its platform partners to link their Websites and mobile apps to its platform, enabling their users to share content to Weibo; application programming interfaces, which allow third-party developers to build apps to serve individual and organization users; Weibo Credit that allows its users to purchase in-game virtual items and other fee-based services on Weibo. The company was formerly known as T.CN Corporation and changed its name to Weibo Corporation in 2012. The company was founded in 2009 and is headquartered in Beijing, China. Weibo Corporation is a subsidiary of SINA Corporation.
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NasdaqGS||WB||SPONSORED ADR||Nasdaq Global Select||US||USD||17. Apr 2014|
|DB||2WBA||SPONSORED ADR||Deutsche Boerse AG||DE||EUR||17. Apr 2014|
|BMV||WB N||SPONSORED ADR||Bolsa Mexicana de Valores||MX||MXN||17. Apr 2014|
|Industry:||Internet Software and Services|