Discounted Cash Flow (DCF) Analysis Levered

Activision Blizzard, Inc. (ATVI)

$93.54

-0.38 (-0.40%)

All numbers are in Millions, Currency in USD

Stock DCF: 80.98 | 93.54 | overvalue

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