| Intrinsic Valuation of: HOOD | |||||||||||
| Free Cash Flow Average and Growth over past 5Y | Key Statistics | ||||||||||
| Year | FCF | FCF (FCF/Revenue) | |||||||||
| 2020 | - | - | EPS (FY) | 2 | Market Cap | $83B | |||||
| 2021 | - | - (-) | P/E Ratio | 53 | Total Asset | $26B | |||||
| 2022 | $-968M | - (-) | Net Income | $1B | Total Debt | $0 | |||||
| 2023 | $-909M | 6.1% (-25.5%) | EBITDA | $1B | Total Liab | $18B | |||||
| 2024 | $1B | 227.6% (192.9%) | Opr Margin | 0.36 | Debt/Equity | - | |||||
| 2025 | $-207M | -117.8% (-111.3%) | PreTax Margin | 35.78 | BV/Share | 10 | |||||
| 5Y Average FCF | $-231M | 38.6% (18.7%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 2.5% | Historical US Bond Yield: | 4.4% | ||||||||
| Discount Rate (WACC): | 7.4% | Current US Bond Yield: | 3.5% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (25.0%) | ||||||||||
| 2026 | $-289M | MBG Intrinsic Value | $15 | ||||||||
| 2027 | $-361M | ||||||||||
| 2028 | $-451M | ||||||||||
| 2029 | $-564M | ||||||||||
| 2030 | $-705M | ||||||||||
| 2031 | $-881M | ||||||||||
| Terminal Value | $-18B | Net Worth/Share | $10 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $-14B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $4B | $-13 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $0 | WACC | 7.3% | -11 | -12 | -13 | -15 | -18 | |||
| Equity Value | $-10B | 7.4% | -10 | -12 | -13 | -15 | -18 | ||||
| Shares Outstanding | 767,046,976 | 7.4% | -10 | -12 | -13 | -15 | -17 | ||||
| 7.9% | -9 | -10 | -11 | -13 | -14 | ||||||
| DCF Intrinsic Value | $-13 | 8.4% | -8 | -9 | -10 | -11 | -12 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||