Discounted Cash Flow (DCF) Analysis Levered
Activision Blizzard, Inc. (ATVI)
$76.47
-0.73 (-0.95%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
Revenue | 7,017 | 7,500 | 6,489 | 8,086 | 8,803 | 9,394.59 | 10,025.94 | 10,699.72 | 11,418.77 | 12,186.15 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 2,213 | 1,790 | 1,831 | 2,252 | 2,414 | 2,609.71 | 2,785.09 | 2,972.26 | 3,172.01 | 3,385.18 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -155 | -131 | -116 | -78 | -80 | -143.11 | -152.73 | -162.99 | -173.95 | -185.64 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 2,058 | 1,659 | 1,715 | 2,174 | 2,334 | 2,466.60 | 2,632.37 | 2,809.27 | 2,998.06 | 3,199.54 |
Weighted Average Cost Of Capital
Share price | $ 76.47 |
---|---|
Beta | 0.555 |
Diluted Shares Outstanding | 778 |
Cost of Debt | |
Tax Rate | 14.70 |
After-tax Cost of Debt | 2.24% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 5.352 |
Total Debt | 3,608 |
Total Equity | 59,493.66 |
Total Capital | 63,101.66 |
Debt Weighting | 5.72 |
Equity Weighting | 94.28 |
Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
Revenue | 7,017 | 7,500 | 6,489 | 8,086 | 8,803 | 9,394.59 | 10,025.94 | 10,699.72 | 11,418.77 | 12,186.15 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 2,213 | 1,790 | 1,831 | 2,252 | 2,414 | 2,609.71 | 2,785.09 | 2,972.26 | 3,172.01 | 3,385.18 |
Capital Expenditure | -155 | -131 | -116 | -78 | -80 | -143.11 | -152.73 | -162.99 | -173.95 | -185.64 |
Free Cash Flow | 2,058 | 1,659 | 1,715 | 2,174 | 2,334 | 2,466.60 | 2,632.37 | 2,809.27 | 2,998.06 | 3,199.54 |
WACC | ||||||||||
PV LFCF | 2,230.05 | 2,262.93 | 2,296.29 | 2,330.14 | 2,364.49 | |||||
SUM PV LFCF | 12,077.61 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 5.17 |
Free cash flow (t + 1) | 3,263.53 |
Terminal Value | 102,950.56 |
Present Value of Terminal Value | 80,014.62 |
Intrinsic Value
Enterprise Value | 92,092.23 |
---|---|
Net Debt | -6,815 |
Equity Value | 98,907.23 |
Shares Outstanding | 778 |
Equity Value Per Share | 127.13 |