Discounted Cash Flow (DCF) Analysis Levered

Activision Blizzard, Inc. (ATVI)

$80.5

-0.38 (-0.47%)
All numbers are in Millions, Currency in USD
Stock DCF: 73.18 | 80.5 | overvalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 7,5006,4898,0868,8037,5287,631.787,736.997,843.657,951.788,061.41
Revenue (%)
Operating Cash Flow 1,7901,8312,2522,4142,2202,088.772,117.562,146.752,176.352,206.35
Operating Cash Flow (%)
Capital Expenditure -131-116-78-80-91-100.99-102.38-103.80-105.23-106.68
Capital Expenditure (%)
Free Cash Flow 1,6591,7152,1742,3342,1291,987.772,015.182,042.962,071.122,099.68

Weighted Average Cost Of Capital

Share price $ 80.5
Beta 0.416
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 5.749
Total Debt 3,611
Total Equity 63,514.50
Total Capital 67,125.50
Debt Weighting 5.38
Equity Weighting 94.62
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 7,5006,4898,0868,8037,5287,631.787,736.997,843.657,951.788,061.41
Operating Cash Flow 1,7901,8312,2522,4142,2202,088.772,117.562,146.752,176.352,206.35
Capital Expenditure -131-116-78-80-91-100.99-102.38-103.80-105.23-106.68
Free Cash Flow 1,6591,7152,1742,3342,1291,987.772,015.182,042.962,071.122,099.68
WACC
PV LFCF 1,882.721,807.801,735.861,666.781,600.46
SUM PV LFCF 8,693.62

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.58
Free cash flow (t + 1) 2,141.67
Terminal Value 59,823.16
Present Value of Terminal Value 45,599.60

Intrinsic Value

Enterprise Value 54,293.22
Net Debt -3,449
Equity Value 57,742.22
Shares Outstanding 789
Equity Value Per Share 73.18