Discounted Cash Flow (DCF) Analysis Levered

GameStop Corp

GameStop Corp (GME)

$35.5
-4.41 (-11.05%)

Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 8,886.709,039.509,296.009,363.807,965.008,547.108,285.306,466.006,213.235,970.335,736.935,512.665,297.16
Revenue (%)
Operating Cash Flow 632.40762.70480.50656.80537.10434.90325.10-414.50288.00276.74265.92255.52245.53
Operating Cash Flow (%)
Capital Expenditure -139.60-125.60-159.60-173.20-142.70-113.40-93.70-78.50-93.12-89.48-85.98-82.62-79.39
Capital Expenditure (%)
Free Cash Flow 492.80637.10320.90483.60394.40321.50231.40-493.00194.87187.26179.94172.90166.14

Weighted Average Cost Of Capital

Share price $ 35.5
Beta 1.158
Diluted Shares Outstanding 87.50
Cost of Debt
Tax Rate -10.33
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.674
Total Debt 419.80
Total Equity 3,106.25
Total Capital 3,526.05
Debt Weighting 11.91
Equity Weighting 88.09
Wacc

Build Up Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 8,886.709,039.509,296.009,363.807,965.008,547.108,285.306,466.006,213.235,970.335,736.935,512.665,297.16
Operating Cash Flow 632.40762.70480.50656.80537.10434.90325.10-414.50288.00276.74265.92255.52245.53
Capital Expenditure -139.60-125.60-159.60-173.20-142.70-113.40-93.70-78.50-93.12-89.48-85.98-82.62-79.39
Free Cash Flow 492.80637.10320.90483.60394.40321.50231.40-493.00194.87187.26179.94172.90166.14
WACC
PV LFCF 175.75152.31131.99114.3999.13
SUM PV LFCF 673.58

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.88
Free cash flow (t + 1) 172.79
Terminal Value 2,511.45
Present Value of Terminal Value 1,498.50

Intrinsic Value

Enterprise Value 2,172.08
Net Debt -79.60
Equity Value 2,251.68
Shares Outstanding 87.50
Equity Value Per Share 25.73