Financial statement analysis and common stock valuation

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Evaluates revenues and output generated by the AppLovin Corp. assets. Operating performance ratios describe the relationship between the AppLovin Corp. level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Receivable Collection Period
• Average Payables Payment Period

Income Statement
Quarterly Data

The income statement (statement of earnings) reports on the performance of AppLovin Corp., the result of its operating activities.

Enterprise Value to EBITDA (EV/EBITDA)

To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.

• Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
• EV to EBITDA Ratio, Current
• EV to EBITDA Ratio, Historical

Cash Flow Statement
Quarterly Data

The cash flow statement provides information about AppLovin Corp. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on AppLovin Corp. balance sheet.

Common-Size Income Statement

Income statement components (revenues and expenses) shown as percentage of total sales.

Common Stock Valuation Ratios

Relative valuation technique determine the value of AppLovin Corp. by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

• Current Valuation Ratios
• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)

Income Statement

The income statement (statement of earnings) reports on the performance of AppLovin Corp., the result of its operating activities.

Balance Sheet: Liabilities and Stockholders’ Equity

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Analysis of Revenues

• Revenues as Reported

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of AppLovin Corp. common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Analysis of Reportable Segments

AppLovin Corp. operates in 2 segments: Advertising and Apps.

• Segment Profit Margin
• Revenue
• Adjusted EBITDA

Analysis of Long-term (Investment) Activity Ratios

Measures how efficiently AppLovin Corp. generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
• Total Asset Turnover
• Equity Turnover