Discounted Cash Flow (DCF) Analysis Levered

Zynga Inc. (ZNGA)

$8.46

-0.01 (-0.12%)
All numbers are in Millions, Currency in USD
Stock DCF: 232.86 | 8.46 | 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 $ 8.46
Beta -0.077
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 2.520
Total Debt 1,494.30
Total Equity 8,602.13
Total Capital 10,096.43
Debt Weighting 14.80
Equity Weighting 85.20
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 547.97723.07954.141,259.041,661.38
SUM PV LFCF 5,145.61

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 2.73
Free cash flow (t + 1) 1,938.91
Terminal Value 265,603.62
Present Value of Terminal Value 232,138.70

Intrinsic Value

Enterprise Value 237,284.31
Net Debt 510.30
Equity Value 236,774.01
Shares Outstanding 1,016.80
Equity Value Per Share 232.86