Discounted Cash Flow (DCF) Analysis Levered

Zynga Inc. (ZNGA)

$8.18

-0.17 (-2.04%)
All numbers are in Millions, Currency in USD
Stock DCF: 64.38 | 8.18 | 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 861.39907.211,321.661,974.802,800.503,796.315,146.226,976.139,456.7212,819.38
Revenue (%)
Operating Cash Flow 94.58168.24262.83429.20253.80608.98825.531,119.071,516.992,056.41
Operating Cash Flow (%)
Capital Expenditure -9.97-11.47-23.64-24.80-16.80-46.06-62.43-84.63-114.73-155.52
Capital Expenditure (%)
Free Cash Flow 84.61156.77239.19404.40237562.93763.091,034.441,402.271,900.89

Weighted Average Cost Of Capital

Share price $ 8.18
Beta 0.023
Diluted Shares Outstanding 1,016.80
Cost of Debt
Tax Rate -1,170.73
After-tax Cost of Debt 3.96%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.639
Total Debt 1,494.30
Total Equity 8,317.42
Total Capital 9,811.72
Debt Weighting 15.23
Equity Weighting 84.77
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 861.39907.211,321.661,974.802,800.503,796.315,146.226,976.139,456.7212,819.38
Operating Cash Flow 94.58168.24262.83429.20253.80608.98825.531,119.071,516.992,056.41
Capital Expenditure -9.97-11.47-23.64-24.80-16.80-46.06-62.43-84.63-114.73-155.52
Free Cash Flow 84.61156.77239.19404.40237562.93763.091,034.441,402.271,900.89
WACC
PV LFCF 538.48698.25905.431,174.091,522.45
SUM PV LFCF 4,838.71

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.54
Free cash flow (t + 1) 1,938.91
Terminal Value 76,334.90
Present Value of Terminal Value 61,137.92

Intrinsic Value

Enterprise Value 65,976.63
Net Debt 510.30
Equity Value 65,466.33
Shares Outstanding 1,016.80
Equity Value Per Share 64.38