Discounted Cash Flow (DCF) Analysis Levered
Activision Blizzard, Inc. (ATVI)
$80.5
-0.38 (-0.47%)
All numbers are in Millions, Currency in USD
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 | 7,500 | 6,489 | 8,086 | 8,803 | 7,528 | 7,631.78 | 7,736.99 | 7,843.65 | 7,951.78 | 8,061.41 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 1,790 | 1,831 | 2,252 | 2,414 | 2,220 | 2,088.77 | 2,117.56 | 2,146.75 | 2,176.35 | 2,206.35 |
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 | 1,659 | 1,715 | 2,174 | 2,334 | 2,129 | 1,987.77 | 2,015.18 | 2,042.96 | 2,071.12 | 2,099.68 |
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 | 7,500 | 6,489 | 8,086 | 8,803 | 7,528 | 7,631.78 | 7,736.99 | 7,843.65 | 7,951.78 | 8,061.41 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 1,790 | 1,831 | 2,252 | 2,414 | 2,220 | 2,088.77 | 2,117.56 | 2,146.75 | 2,176.35 | 2,206.35 |
Capital Expenditure | -131 | -116 | -78 | -80 | -91 | -100.99 | -102.38 | -103.80 | -105.23 | -106.68 |
Free Cash Flow | 1,659 | 1,715 | 2,174 | 2,334 | 2,129 | 1,987.77 | 2,015.18 | 2,042.96 | 2,071.12 | 2,099.68 |
WACC | ||||||||||
PV LFCF | 1,882.72 | 1,807.80 | 1,735.86 | 1,666.78 | 1,600.46 | |||||
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 |