Discounted Cash Flow (DCF) Analysis Levered

Activision Blizzard, Inc. (ATVI)

$76.47

-0.73 (-0.95%)
All numbers are in Millions, Currency in USD
Stock DCF: 127.13 | 76.47 | undervalue

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 7,0177,5006,4898,0868,8039,394.5910,025.9410,699.7211,418.7712,186.15
Revenue (%)
Operating Cash Flow 2,2131,7901,8312,2522,4142,609.712,785.092,972.263,172.013,385.18
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 2,0581,6591,7152,1742,3342,466.602,632.372,809.272,998.063,199.54

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 7,0177,5006,4898,0868,8039,394.5910,025.9410,699.7211,418.7712,186.15
Operating Cash Flow 2,2131,7901,8312,2522,4142,609.712,785.092,972.263,172.013,385.18
Capital Expenditure -155-131-116-78-80-143.11-152.73-162.99-173.95-185.64
Free Cash Flow 2,0581,6591,7152,1742,3342,466.602,632.372,809.272,998.063,199.54
WACC
PV LFCF 2,230.052,262.932,296.292,330.142,364.49
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