Discounted Cash Flow (DCF) Analysis Levered
Activision Blizzard, Inc. (ATVI)
$93.54
-0.38 (-0.40%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
Revenue | 6,489 | 8,086 | 8,803 | 7,528 | 8,004.63 | 8,511.44 | 9,050.34 | 9,623.36 | 10,232.66 | 10,880.53 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 1,831 | 2,252 | 2,414 | 2,220 | 2,448 | 2,443.84 | 2,598.57 | 2,763.10 | 2,938.05 | 3,124.07 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -116 | -78 | -80 | -91 | -97.45 | -103.62 | -110.18 | -117.16 | -124.58 | -132.47 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 1,715 | 2,174 | 2,334 | 2,129 | 2,350.55 | 2,340.22 | 2,488.39 | 2,645.94 | 2,813.47 | 2,991.60 |
Weighted Average Cost Of Capital
Share price | $ 93.54 |
---|---|
Beta | 0.444 |
Diluted Shares Outstanding | 789 |
Cost of Debt | |
Tax Rate | 13.25 |
After-tax Cost of Debt | 2.59% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 6.691 |
Total Debt | 3,611 |
Total Equity | 73,803.06 |
Total Capital | 77,414.06 |
Debt Weighting | 4.66 |
Equity Weighting | 95.34 |
Wacc |
Build Up Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
Revenue | 6,489 | 8,086 | 8,803 | 7,528 | 8,004.63 | 8,511.44 | 9,050.34 | 9,623.36 | 10,232.66 | 10,880.53 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 1,831 | 2,252 | 2,414 | 2,220 | 2,448 | 2,443.84 | 2,598.57 | 2,763.10 | 2,938.05 | 3,124.07 |
Capital Expenditure | -116 | -78 | -80 | -91 | -97.45 | -103.62 | -110.18 | -117.16 | -124.58 | -132.47 |
Free Cash Flow | 1,715 | 2,174 | 2,334 | 2,129 | 2,350.55 | 2,340.22 | 2,488.39 | 2,645.94 | 2,813.47 | 2,991.60 |
WACC | ||||||||||
PV LFCF | 2,350.55 | 2,197.39 | 2,193.91 | 2,190.44 | 2,186.97 | 2,183.51 | ||||
SUM PV LFCF | 10,952.22 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 6.50 |
Free cash flow (t + 1) | 3,051.43 |
Terminal Value | 67,809.60 |
Present Value of Terminal Value | 49,492.93 |
Intrinsic Value
Enterprise Value | 60,445.16 |
---|---|
Net Debt | -3,449 |
Equity Value | 63,894.16 |
Shares Outstanding | 789 |
Equity Value Per Share | 80.98 |