Using an unlevered Free Cash Flow to Firm (FCFF) model, we project GoDaddy Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 5.7% to 4.5% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 6, DPO 24, DIO 60). At a 8.7% WACC with mid-year discounting, the terminal value (75% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 14.4x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $149.34 per share, suggesting GDDY is undervalued by 82.7% at the current price of $81.74.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 1,208 | 1,279 | 1,351 | 1,395 | 1,458 | 1,495 |
| (−) Net Interest | 184 | 195 | 206 | 213 | 222 | 228 |
| (+) D&A | 88 | 61 | 73 | 83 | 104 | 107 |
| EBITDA | 1,481 | 1,535 | 1,630 | 1,691 | 1,785 | 1,829 |
| (−) Tax | 0 | 0 | 0 | 0 | 0 | — |
| (−) CapEx | 115 | 122 | 129 | 133 | 139 | — |
| (−) ΔWC | 260 | 16 | 16 | 10 | 14 | — |
| Free Cash Flow (FCF) | 1,106 | 1,397 | 1,485 | 1,548 | 1,632 | — |
| Peers' EBITDA Multiple | 14.4x | |||||
| Terminal Value | 26,270 | |||||
| WACC / Discount Rate | 8.66% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 1,061 | 1,233 | 1,206 | 1,157 | 1,123 | 17,340 |
| Enterprise Value | 23,120 | |||||
| Projection Period | 5,780 | 25.0% | ||||
| Terminal Value | 17,340 | 75.0% | ||||
| (−) Current Net Debt | 2,782 | |||||
| Equity Value | 20,338 | |||||
| (÷) Outstanding Shares | 136M | |||||
| Fair Price | $149 | +82.7% | ||||
| WACC \ EV/EBITDA Exit Multiple | 10.4x | 12.4x | 14.4x | 16.4x | 18.4x |
|---|---|---|---|---|---|
| 6.7% | $125 | $144 | $164 | $183 | $203 |
| 7.7% | $119 | $138 | $156 | $175 | $194 |
| 8.7% | $114 | $132 | $149 | $167 | $185 |
| 9.7% | $109 | $126 | $143 | $160 | $177 |
| 10.7% | $104 | $120 | $136 | $153 | $169 |
Current price: $81.74. Green = undervalued, Red = overvalued.
Based on default parameters
This is an unlevered Free Cash Flow to Firm (FCFF) model with a 5-year projection period. Revenue, expenses, D&A, and working capital are projected using the same line-by-line approach as the Growth Exit models. The key difference is the terminal value methodology: instead of assuming perpetual cash flow growth, the terminal value is calculated by applying the industry peer median EV/EBITDA multiple to the projected Year 6 EBITDA.
Using a peer exit multiple anchors the terminal value to how the market currently prices comparable companies, rather than relying on a theoretical perpetual growth assumption. This approach captures relative valuation dynamics and is particularly useful when a company is expected to converge toward industry-average profitability over time. The sensitivity matrix shows how fair value changes across different WACC and EV/EBITDA multiple scenarios.