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 6,4898,0868,8037,5288,004.638,511.449,050.349,623.3610,232.6610,880.53
Revenue (%)
Operating Cash Flow 1,8312,2522,4142,2202,4482,443.842,598.572,763.102,938.053,124.07
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 1,7152,1742,3342,1292,350.552,340.222,488.392,645.942,813.472,991.60

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 6,4898,0868,8037,5288,004.638,511.449,050.349,623.3610,232.6610,880.53
Operating Cash Flow 1,8312,2522,4142,2202,4482,443.842,598.572,763.102,938.053,124.07
Capital Expenditure -116-78-80-91-97.45-103.62-110.18-117.16-124.58-132.47
Free Cash Flow 1,7152,1742,3342,1292,350.552,340.222,488.392,645.942,813.472,991.60
WACC
PV LFCF 2,350.552,197.392,193.912,190.442,186.972,183.51
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