Complete GDDY Stock Valuation Analysis
Comprehensive intrinsic value analysis using 6 different methodologies
GDDY DCF Analysis
GDDY (GoDaddy Inc.) discounted cash flow analysis with multiple scenarios, growth assumptions, and terminal value calculations
Financial Projections
| Metrics | 2022 (Historical) | 2023 (Historical) | 2024 (Historical) | 2025 (Projected) | 2026 (Projected) | 2027 (Projected) | 2028 (Projected) | 2029 (Projected) |
|---|---|---|---|---|---|---|---|---|
| Revenue | $4.1B | $4.3B | $4.6B | $4.9B | $5.2B | $5.5B | $5.8B | $6.1B |
| Revenue Growth % | - | 4.0% | 7.5% | 7.1% | 6.4% | 5.8% | 5.2% | 4.7% |
| EBIT | $498.8M | $547.4M | $893.5M | $728.4M | $780.4M | $831.1M | $880.2M | $927.5M |
| EBIT Margin % | 12.2% | 12.9% | 19.5% | 14.9% | 15.0% | 15.1% | 15.2% | 15.3% |
| Tax Rate % | 1.0% | 0.0% | 22.4% | 10.5% | 12.0% | 13.4% | 14.9% | 16.3% |
| NOPAT | $493.8M | $547.4M | $693.3M | $651.7M | $686.9M | $719.5M | $749.3M | $776.1M |
| NOPAT Margin % | 12.1% | 12.9% | 15.2% | 13.3% | 13.2% | 13.0% | 12.9% | 12.8% |
| Capex | $60.1M | $77.4M | $26.6M | $127.0M | $128.4M | $129.1M | $129.0M | $128.3M |
| Capex / Revenue % | 1.5% | 1.8% | 0.6% | 2.6% | 2.5% | 2.3% | 2.2% | 2.1% |
| Depreciation | $194.6M | $171.3M | $135.3M | $191.8M | $204.1M | $215.9M | $227.2M | $237.8M |
| D&A / Revenue % | 4.8% | 4.0% | 3.0% | 3.9% | 3.9% | 3.9% | 3.9% | 3.9% |
| Change in NWC | $-330.3M | $-550.0M | $680.6M | $-197.8M | $-168.4M | $-142.5M | $-120.0M | $-100.5M |
| NWC Change / Revenue % | -8.1% | -12.9% | 14.9% | -4.0% | -3.2% | -2.6% | -2.1% | -1.7% |
| Unlevered FCF | $958.6M | $1.2B | $121.4M | $914.2M | $931.0M | $948.9M | $967.4M | $986.1M |
| UFCF % Chg. | - | 24.3% | -89.8% | 653.1% | 1.8% | 1.9% | 2.0% | 1.9% |
| FCF / Revenue % | 23.4% | 28.0% | 2.7% | 18.7% | 17.9% | 17.2% | 16.7% | 16.2% |
| Discount Factor | - | - | - | 0.924 | 0.853 | 0.788 | 0.728 | 0.673 |
| Present Value of FCF | - | - | - | $844.5M | $794.4M | $747.9M | $704.4M | $663.2M |
| Sum of PV of UFCF | - | - | - | $844.5M | $1.6B | $2.4B | $3.1B | $3.8B |
WACC Calculation
Weighted Average Cost of Capital used for discounting cash flows.
| WACC Calculation | Value |
|---|---|
| Cost of Debt | 4.8% |
| Tax Rate | 10.5% |
| After Tax Cost of Debt | 4.3% |
| Risk Free Rate | 4.34% |
| Market Risk Premium | 4.3% |
| Beta | 1.05 |
| Cost of Equity | 8.9% |
| Total Debt | $3.9B |
| Market Cap | $23.3B |
| Total Capital | $27.2B |
| Debt Weighting | 14.3% |
| Equity Weighting | 85.7% |
| WACC | 8.3% |
Terminal Value
Choose between perpetuity growth or exit multiple methods.
| Terminal Value Calculation | Value |
|---|---|
| Terminal Growth Rate | 2.5% |
| Final Year FCF | $986.1M |
| Terminal Value | $17.6B |
| PV of Terminal Value | $11.8B |
| Cumulative PV of UFCF | $3.8B |
| Net Debt | $2.8B |
| Equity Value | $12.8B |
| Shares Outstanding | 145.3M |
| Implied Share Price | $88 |
| Current Share Price | $163 |
| Implied Upside/(Downside) | -46.2% |
Valuation Summary
$87.99
Implied Price
$163.45
Current Price
-46.2%
Upside/Downside
8.3%
WACC
GDDY Peer Valuation Analysis
Relative valuation based on comparable company trading multiples
Peer Valuation Analysis
Fair Value Range Analysis
Based on median multiples from 9 peer companies in Technology
P/E Ratio
$163.45
+0.0%
Peer Median: 31.4x
EV/EBITDA
$136.09
-16.7%
Peer Median: 23.1x
P/S Ratio
$207.96
+27.2%
Peer Median: 6.4x
Interpretation: Each multiple provides a different perspective on fair value. Consider which multiple is most relevant for GDDY's business model and current situation.
Multiple Comparison
| Multiple | GDDY Current | Peer Median | Peer Average | Premium/Discount | Assessment |
|---|---|---|---|---|---|
| P/E Ratio | 31.4x | 31.4x | 29.8x | 0.0% | Fair Value |
| EV/EBITDA | 31.1x | 23.1x | 22.2x | 34.5% | Overvalued |
| P/S Ratio | 5.0x | 6.4x | 7.4x | -21.4% | Undervalued |
Peer Companies
Click any company to view their valuation
| Company | Market Cap | P/E Ratio | EV/EBITDA | P/S Ratio |
|---|---|---|---|---|
| $73.34B | 0.0x | 0.0x | 20.2x | |
| $49.67B | 0.0x | 122.8x | 25.9x | |
| $69.47B | 0.0x | 799.6x | 39.2x | |
| $23.29B | 31.4x | 31.1x | 5.0x | |
| $24.75B | 31.8x | 23.1x | 15.7x | |
| $16.61B | 621.9x | 276.6x | 6.4x | |
| $19.98B | 0.0x | 94.6x | 4.4x | |
| $19.90B | 0.0x | 0.0x | 9.9x | |
| $11.42B | 26.1x | 12.3x | 2.8x |
GDDY Graham Number
Benjamin Graham's conservative valuation formula for defensive investors
Input Data
| EPS (TTM) | $5.20 | Latest 10-K |
| Book Value per Share | $4.76 | Latest 10-K Balance Sheet |
| Graham Constant | 22.5 | Benjamin Graham's formula |
Graham Number Result
$23.61
Intrinsic Value
$163.45
Current Price
-85.6%
Upside/Downside
Confidence: High
Conservative value investing approach
Calculation Breakdown
Formula:
√(22.5 × EPS × BVPS)
Step 1: Multiply constant by EPS
22.5 × 5.20 = 117.00
Step 2: Multiply by Book Value per Share
117.00 × 4.76 = 557.35
Step 3: Take square root
√557.35 = 23.61
Graham Number Result:
$23.61
GDDY Graham Intrinsic Value
Growth-adjusted intrinsic value with two formula variants
Formula Selection
V = EPS × (8.5 + 2g)
Graham's original P/E shortcut for growth, no interest-rate adjustment
V = [EPS × (8.5 + 2g) × 4.4] / Y
Graham's 1974 refinement: adds rate-environment sensitivity
Active Formula: Base-Growth
5.20 × (8.5 + 2 × 66.4%)
Input Data & Growth Assumptions
Current EPS (TTM)$5.20
Latest 10-K • 2024-12-31T00:00:00
Historical 3Y66.4%
Financial statements
Historical 5Y53.0%
Financial statements
Custom
%
Enter a positive growth rate estimate (0-50%)
Graham Intrinsic Value Result
$734.35
Intrinsic Value
$163.45
Current Price
+349.3%
Upside/Downside
Base Formula
Growth: 66.4%
GDDY Peter Lynch Fair Value
Growth-based valuation using PEG ratio analysis for growth stocks
Fair Value Calculation
EPS (TTM)$5.20
Latest 10-K • 2024-12-31T00:00:00
Historical 3Y66.4%
3-year earnings growth
Historical 5Y53.0%
5-year earnings growth
66.4%
1%50%
Fair Value Formula: EPS × Growth Rate
$5.20 × 66.4% = $345.08
$345.08
Fair Value
$163.45
Current Price
+111.1%
Upside/Downside
PEG Analysis
31.4x
Current P/E
66.4%
Growth Rate
0.47
PEG Ratio (P/E ÷ Growth Rate)
Significantly Undervalued
PEG Ratio Interpretation:
• PEG < 1.0: Undervalued (growth exceeds P/E)
• PEG = 1.0: Fairly valued (ideal Lynch ratio)
• PEG > 1.5: Overvalued (paying premium for growth)
Peter Lynch's Rule:
"The P/E ratio of any company that's fairly priced will equal its growth rate." A stock with 15% growth should trade at a P/E of 15 (PEG = 1.0).
GDDY Earnings Power Value (EPV)
Normalized earnings-based valuation for sustainable earning power assessment
Earnings Normalization
| Earnings Component | Amount ($B) | Description |
|---|---|---|
| Reported Earnings | 0.9 | Base earnings from financial statements |
| Normalized Earnings | 0.9 | Final normalized earning power |
One-time Items: Remove non-recurring gains/losses
Cyclical Adjustment: Normalize for economic cycle position
EPV Result
$77.54
EPV per Share
$163.45
Current Price
-52.6%
Upside/Downside
8.3%
WACC: 8.3% (calculated from market data)
Confidence: High
Normalized earnings approach
EPV Calculation Breakdown
Enterprise Value Calculation
| Normalized Earnings | $0.9B |
| Cost of Capital | 8.3% |
| Enterprise Value | $11.3B |
Per Share Value
| Enterprise Value | $11.3B |
| Shares Outstanding | 0.1B |
| EPV per Share | $77.54 |
WACC Components
| Cost of Equity | 9.1% |
| After-Tax Cost of Debt | 3.5% |
| Equity Weight | 86.0% |
| Debt Weight | 14.0% |
| WACC | 8.3% |