DCF Tool

ATVI

Activision Blizzard Inc – Software Publishers
Activision Blizzard, Inc. connects and engages the world through epic entertainment. A member of the Fortune 500 and S&P 500, Activision Blizzard is a leading interactive entertainment company. It delights hundreds of millions of monthly active users around the world through franchises including Activision's Call of Duty® and Crash Bandicoot™, Blizzard Entertainment's World of Warcraft®, Overwatch®, Hearthstone®, Diablo®, and StarCraft®, and King's Candy Crush™, Bubble Witch™, and Farm Heroes™. Headquartered in Santa Monica, California, Activision Blizzard has operations throughout the world.
Analysis Results
Intrinsic Value $329.61
Latest Price $77.99
Relative Value 76% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 19.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.8%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 4.58 4.41
2023 5.49 5.1
2024 6.58 5.89
2025 7.88 6.81
2026 9.44 7.87
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 283 billion. This corresponds to a present value of 228 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 30.1 billion. Adding in the terminal value gives a total present value of 258 billion.

There are presently 782.0 million outstanding shares, so the intrinsic value per share is 329.61.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 12,556,000,000
Current Cash 10,423,000,000
Current Liabilities 2,411,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -278,000,000
Change in NCWC 904,000,000
EBIT 3,336,000,000
Tax Provision 465,000,000
Depreciation and Amortization 440,000,000
Capital Expenditure -80,000,000
Unlevered Free Cash Flow 4,109,721,871
Current Assets 10,565,000,000
Current Cash 8,647,000,000
Current Liabilities 3,100,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,182,000,000
Change in NCWC 235,000,000
EBIT 2,828,000,000
Tax Provision 419,000,000
Depreciation and Amortization 446,000,000
Capital Expenditure -78,000,000
Unlevered Free Cash Flow 2,978,044,342
Current Assets 7,292,000,000
Current Cash 5,794,000,000
Current Liabilities 2,915,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,417,000,000
Change in NCWC -656,000,000
EBIT 1,739,000,000
Tax Provision 130,000,000
Depreciation and Amortization 553,000,000
Capital Expenditure -116,000,000
Unlevered Free Cash Flow 1,381,561,543
Current Assets 6,106,000,000
Current Cash 4,225,000,000
Current Liabilities 2,642,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -761,000,000
Change in NCWC 1,095,000,000
EBIT 1,988,000,000
Tax Provision 64,000,000
Depreciation and Amortization 998,000,000
Capital Expenditure -131,000,000
Unlevered Free Cash Flow 3,882,215,237
Current Assets 6,520,000,000
Current Cash 4,713,000,000
Current Liabilities 3,663,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,856,000,000
Change in NCWC -785,000,000
EBIT 1,309,000,000
Tax Provision 878,000,000
Depreciation and Amortization 1,199,000,000
Capital Expenditure -155,000,000
Unlevered Free Cash Flow 569,475,238
Current Assets 4,830,000,000
Current Cash 3,245,000,000
Current Liabilities 2,656,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,071,000,000
Change in NCWC -16,000,000
EBIT 1,412,000,000
Tax Provision 140,000,000
Depreciation and Amortization 1,150,000,000
Capital Expenditure -136,000,000
Unlevered Free Cash Flow 2,231,265,822
Current Assets 3,387,000,000
Current Cash 1,831,000,000
Current Liabilities 2,611,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,055,000,000
Change in NCWC -402,000,000
EBIT 1,319,000,000
Tax Provision 229,000,000
Depreciation and Amortization 494,000,000
Capital Expenditure -111,000,000
Unlevered Free Cash Flow 1,030,552,185
Current Assets 6,909,000,000
Current Cash 4,848,000,000
Current Liabilities 2,714,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -653,000,000
Change in NCWC -83,000,000
EBIT 1,183,000,000
Tax Provision 146,000,000
Depreciation and Amortization 90,000,000
Capital Expenditure -107,000,000
Unlevered Free Cash Flow 906,936,799
Current Assets 6,241,000,000
Current Cash 4,431,000,000
Current Liabilities 2,405,000,000
Current Debt 25,000,000
Non-Cash Working Capital (NCWC) -570,000,000
Change in NCWC 165,000,000
EBIT 1,372,000,000
Tax Provision 309,000,000
Depreciation and Amortization 108,000,000
Capital Expenditure -74,000,000
Unlevered Free Cash Flow 1,249,583,775
Current Assets 6,274,000,000
Current Cash 4,357,000,000
Current Liabilities 2,652,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -735,000,000
Change in NCWC -50,000,000
EBIT 1,451,000,000
Tax Provision 309,000,000
Depreciation and Amortization 120,000,000
Capital Expenditure -73,000,000
Unlevered Free Cash Flow 1,140,483,539

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