MSFT model

	B	C	D	E	F	G	H	I	J	K	L	M	N	O	P	Q	R
1	Cells highlighted in yellow are inputs
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3	Inputs					Output
4	Discount Rate	3%				Calculated Value per Share			$ 240
5	Tax Rate	20%
6	FCF Multiplier for Terminal Value	20
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8			Actuals					Forecast
9			2016	2017	2018	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028	2029	2030
10	YoY Revenue Growth			6%	14%	14%	14%	10%	12%	11%	10%	8%	7%	6%	5%	4%	3%
11	Revenue		91	97	110	126	143	157	175	194	213	230	247	262	275	287	297
12	EBIT Margin		29%	30%	32%	34%	37%	34%	34%	34%	34%	34%	34%	34%	34%	35%	35%
13	EBIT $		26	29	35	43	53	53	59	66	73	79	85	90	95	99	102
14	Tax Rate		0%	0%	57%	10%	17%	20%	20%	20%	20%	20%	20%	20%	20%	20%	20%
15	Taxes Paid				20	4	9	11	12	13	15	16	17	18	19	20	20
16	Net Income		21	26	17	39	44	42	47	53	58	63	68	72	76	79	82
17	Depreciation & Amortization				10.3	11.7	12.8	12	14	15	16	16	16	15	14	13	12
18	Cap Ex			8	12	14	15	15	17	17	16	15	13	12	10	11	12
19	Cap Ex as % of 3 yr rev growth		0%	17%	25%	28%	30%	30%	30%	30%	30%	30%	30%	30%	30%
20	FCFF		21	17	15	37	41	39	45	52	58	64	70	75	80	81	82
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22	Discount Rate								3%	3%	3%	3%	3%	3%	3%	3%	3%
23	Discount Factor								97%	94%	92%	89%	86%	84%	81%	79%	77%
24	PV of FCF								44	49	53	57	61	63	65	64	63
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27	Terminal Value	1631
28	PV of Terminal Value	1250
29	PV of 10yr FCF	518
30	Sum of PVs	1768
31	Minus Debt	60
32	Plus Cash	136.5
33	Value of Equity	1844
34	Shares Outstanding	7.683
35	Calculated Value / Share	$ 240
36	Current Price	$ 218
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