Discounted Cash Flow (DCF) Analysis Levered

GameStop Corp. (GME)

$13.49

-0.63 (-4.46%)
All numbers are in Millions, Currency in USD
Stock DCF: 159.71 | 13.49 | undervalue

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 8,285.306,4665,089.806,010.705,927.205,533.965,166.814,824.024,503.974,205.16
Revenue (%)
Operating Cash Flow 325.10-414.50123.70-434.30108.20-60.39-56.38-52.64-49.15-45.89
Operating Cash Flow (%)
Capital Expenditure -93.70-78.50-60-62-55.90-60.86-56.82-53.05-49.53-46.24
Capital Expenditure (%)
Free Cash Flow 231.40-49363.70-496.3052.30-121.25-113.20-105.69-98.68-92.13

Weighted Average Cost Of Capital

Share price $ 13.49
Beta -0.346
Diluted Shares Outstanding 304.20
Cost of Debt
Tax Rate -3.64
After-tax Cost of Debt 4.25%
Risk-Free Rate
Market Risk Premium
Cost of Equity 2.618
Total Debt 616.60
Total Equity 4,103.66
Total Capital 4,720.26
Debt Weighting 13.06
Equity Weighting 86.94
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 8,285.306,4665,089.806,010.705,927.205,533.965,166.814,824.024,503.974,205.16
Operating Cash Flow 325.10-414.50123.70-434.30108.20-60.39-56.38-52.64-49.15-45.89
Capital Expenditure -93.70-78.50-60-62-55.90-60.86-56.82-53.05-49.53-46.24
Free Cash Flow 231.40-49363.70-496.3052.30-121.25-113.20-105.69-98.68-92.13
WACC
PV LFCF -117.91-107.06-97.20-88.26-80.13
SUM PV LFCF -490.56

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 2.83
Free cash flow (t + 1) -94.90
Terminal Value 55,821.13
Present Value of Terminal Value 48,551.14

Intrinsic Value

Enterprise Value 48,060.59
Net Debt -522.40
Equity Value 48,582.99
Shares Outstanding 304.20
Equity Value Per Share 159.71