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:
Below please find a table outlining a discounted cash flow forecast for ATVI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Activision Blizzard Inc ranked in the 23th 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:
As a business, ATVI is generating more cash flow than 87.92% of positive cash flow stocks in the Technology.
The business' balance sheet reveals debt to be 5% of the company's capital (with equity being the remaining amount). Approximately just 13.9% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Activision Blizzard Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -61.81. This coverage rate is greater than that of only 1.76% 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
Want more companies with a valuation profile/forecast similar to that of Activision Blizzard Inc? See ITRI, FICO, SLAB, STX, and VIAV.