Activision Blizzard develops and publishes online, personal computer (PC), video game console, handheld, mobile, and tablet games worldwide. The company was founded in 2008 and is based in Santa Monica, California.
ATVI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Activision Blizzard Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Activision Blizzard Inc ranked in the 19th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Activision Blizzard Inc ended up being:
The company has produced more trailing twelve month cash flow than 86.09% of its sector Technology.
The business' balance sheet suggests that 4% of the company's capital is sourced from debt; this is greater than merely 12.47% of the free cash flow producing stocks we're observing.
Activision Blizzard Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -78.52. This coverage rate is greater than that of only 2.17% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ATVI, try FIS, PCYG, SYKE, JKHY, and BHE.
Videogame stocks are active premarket as high-flying Activision Blizzard gets a vote of confidence to keep climbing.Activision ([[ATVI]], +0.9%), Electronic Arts ([[EA]] +0.6%) and Take-Two ([[TTWO]], +0.1%) are rising premarket.Needham boosted its price target on Activision to $90 from $75 per share. Needham cited driving factors like need for social distancing, no movie...
Citing pandemic-related gaming tailwinds, Needham raises its Activision Blizzard (ATVI) target from $75 to $90.Analyst Laura Martin says that live sports and cinemas "being dark" is driving a larger TAM for video games, while the lockdowns generate higher in-game revenue.Martin sees the trends leading to earnings and revenue upside next year.Needham...
Selling in the Chinese video-game market has been difficult, according to Bobby Kotick, chief executive officer of Activision Blizzard, the largest US publisher.“We have very compelling content in China, but it’s a restricted market, and for the last year the Chinese government hasn’t approved any content for release,” Kotick said on Bloomberg Television. The company is working with Tencent Holdings and NetEase, which are both partners and competitors, he said.Kotick spoke in an interview on …