Discounted Cash Flow (DCF) Analysis Levered

Take-Two Interactive Software, Inc. (TTWO)

$122.69

-0.93 (-0.75%)
All numbers are in Millions, Currency in USD
Stock DCF: 337.55 | 122.69 | 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 1,792.892,668.393,088.973,372.773,504.804,185.574,998.565,969.487,128.988,513.70
Revenue (%)
Operating Cash Flow 393.95843.51685.68912.32257.98922.431,101.601,315.581,571.111,876.28
Operating Cash Flow (%)
Capital Expenditure -87.52-66.97-53.38-68.92-158.64-131.34-156.85-187.32-223.70-267.15
Capital Expenditure (%)
Free Cash Flow 306.43776.55632.29843.3999.34791.09944.751,128.261,347.411,609.13

Weighted Average Cost Of Capital

Share price $ 122.69
Beta 0.635
Diluted Shares Outstanding 116.78
Cost of Debt
Tax Rate 10.18
After-tax Cost of Debt 6.68%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.735
Total Debt 250.22
Total Equity 14,327.12
Total Capital 14,577.34
Debt Weighting 1.72
Equity Weighting 98.28
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 1,792.892,668.393,088.973,372.773,504.804,185.574,998.565,969.487,128.988,513.70
Operating Cash Flow 393.95843.51685.68912.32257.98922.431,101.601,315.581,571.111,876.28
Capital Expenditure -87.52-66.97-53.38-68.92-158.64-131.34-156.85-187.32-223.70-267.15
Free Cash Flow 306.43776.55632.29843.3999.34791.09944.751,128.261,347.411,609.13
WACC
PV LFCF 748.08844.81954.041,077.411,216.72
SUM PV LFCF 4,841.06

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.75
Free cash flow (t + 1) 1,641.32
Terminal Value 43,768.42
Present Value of Terminal Value 33,094.74

Intrinsic Value

Enterprise Value 37,935.80
Net Debt -1,481.83
Equity Value 39,417.63
Shares Outstanding 116.78
Equity Value Per Share 337.55