DCF Studio

    GDDY · NYQ · Technology

    GoDaddy Inc.

    Also onShortfallConsensus DriftCrosscheck

    Implied value per share

    USD 89.70

    Market price

    USD 116.61

    Implied upside

    -23.1%

    10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2025-12-31

    AdjustedReported capital expenditure averages 1.09% of revenue against depreciation and amortisation of 3.52%. A business cannot depreciate more than it invests indefinitely. Capex has been set to 3.52% of revenue so the forecast is not handed free growth. The accounts do not separate depreciation from amortisation, so the combined charge is used - if a large part of it is amortisation of an acquisition, the reported capex is probably right and this substitution is not. Override it if the reported figure is right.

    Value Per Share

    Perpetuity growth
    USD 89.70-23.1%
    Exit multiple
    USD 100.28-14.0%
    Market price
    USD 116.61

    Same forecast, different terminal treatment. Percentages vs price.

    Forecast Cashflows

    Reporting currency (USD). Outflows negative.

    0bn1bn1bnFY26FY27FY28FY29FY30FY31FY32FY33FY34FY35
    Nominal FCFFDiscounted to todayUSD
    LineFY26FY27FY28FY29FY30FY31FY32FY33FY34FY35CAGR
    RevenueUSD 5.3bnUSD 5.5bnUSD 5.8bnUSD 6.0bnUSD 6.3bnUSD 6.5bnUSD 6.7bnUSD 6.9bnUSD 7.1bnUSD 7.3bn+3.7%
    EBITUSD 932.1mUSD 978.0mUSD 1.0bnUSD 1.1bnUSD 1.1bnUSD 1.2bnUSD 1.2bnUSD 1.2bnUSD 1.3bnUSD 1.3bn+3.7%
    NOPATUSD 861.1mUSD 903.6mUSD 945.4mUSD 986.3mUSD 1.0bnUSD 1.1bnUSD 1.1bnUSD 1.1bnUSD 1.2bnUSD 1.2bn+3.7%
    Add depreciation & amortisationUSD 185.1mUSD 194.3mUSD 203.3mUSD 212.0mUSD 220.6mUSD 228.8mUSD 236.6mUSD 243.9mUSD 250.8mUSD 257.0m+3.7%
    Less capital expenditureUSD -185.1mUSD -208.9mUSD -233.8mUSD -259.8mUSD -286.8mUSD -314.7mUSD -343.2mUSD -372.1mUSD -401.4mUSD -430.7m+9.8%
    Capex, % of revenue3.5%3.8%4.1%4.3%4.6%4.8%5.1%5.4%5.6%5.9%-
    Less increase in working capitalUSD 2.2mUSD 1.9mUSD 1.9mUSD 1.8mUSD 1.8mUSD 1.7mUSD 1.6mUSD 1.5mUSD 1.4mUSD 1.3m+5.7%
    Free cashflow to firmUSD 863.3mUSD 890.9mUSD 916.7mUSD 940.3mUSD 961.4mUSD 979.8mUSD 995.4mUSD 1.0bnUSD 1.0bnUSD 1.0bn+1.9%
    Discount factor0.96160.88920.82230.76030.70310.65020.60120.55590.51410.4754-
    Present valueUSD 830.2mUSD 792.2mUSD 753.8mUSD 715.0mUSD 676.0mUSD 637.0mUSD 598.4mUSD 560.3mUSD 522.9mUSD 486.3m-
    Present Value Of The ForecastUSD 6.6bn

    Discount Rate

    Source shown per component. All overridable above.

    Risk-free rate4.89%US 10-year Treasury (^TNX), 2026-11-02
    Equity risk premium4.23%Damodaran, January 2026
    Beta0.960Reported 0.941, pulled toward 1.0 (Blume)
    Cost of equity8.96%Risk-free + beta x equity risk premium
    Cost of debt5.44%Risk-free + 55bp, the spread for a AA rating at 7.5x interest cover. Book interest / average debt was lower, at 3.9%.
    Market capitalisationUSD 14.8bn79.3% of capital
    Total debtUSD 3.9bn20.7% of capital, book value as a proxy
    Tax rate7.6%Effective, capped at statutory
    WACC8.14%E/V x Re + D/V x Rd x (1 - t)

    Terminal Value

    Perpetuity growth is intrinsic. The exit multiple defaults to the company's current EV/EBITDA, so it answers a different question - what the shares are worth if today's rating holds and EBITDA grows as forecast.

    Perpetuity growth at 2.50%

    Value per shareUSD 89.70

    57% of EV

    Forecast FCFF, final year
    USD 1.0bn
    Capex at depreciation, working capital in reinvestment
    USD 1.2bn
    Less reinvestment at g/ROIC (14.5% of NOPAT)
    USD -173.7m
    Capitalised
    USD 1.0bn
    ROIC (reported)
    17.2%
    Terminal value, undiscounted
    USD 18.6bn
    Terminal value, discounted
    USD 8.8bn
    Enterprise value
    USD 15.4bn
    Less net debt
    USD 2.8bn
    Equity value
    USD 12.6bn

    Exit at 14.0x EBITDA

    Value per shareUSD 100.28

    61% of EV

    Terminal value, undiscounted
    USD 21.7bn
    Terminal value, discounted
    USD 10.3bn
    Enterprise value
    USD 16.9bn
    Less net debt
    USD 2.8bn
    Equity value
    USD 14.1bn

    Spread between methods: 11%.

    Sensitivity

    Value per share (USD) by discount rate and long-run growth.

    Long-run growth
    Discount rate1.50%2.00%2.50%3.00%3.50%
    6.14%128.96136.90147.19160.96180.17
    7.14%102.88107.06112.27118.88127.46
    8.14%84.6786.9389.7093.1197.38
    9.14%71.2272.4373.9075.7077.91
    10.14%60.8961.4962.2263.1364.25

    Outlined: this model. Green text: above today's price of 116.61. Shading: distance from this model's own value.

    Priced In

    What each input would have to be to justify the current price, one at a time.

    InputActualModelImplied
    Revenue growth, a year6.6%3.9%6.6%
    EBIT margin23.0%17.7%22.1%
    Discount rate-8.1%7.0%
    Download as Excel

    Live formulas, not pasted numbers - edit a driver and the workbook reprices.

    Yahoo Finance and RBA data. General information, not advice. Methodology.