Discounted Cash Flow (DCF) Analysis Levered

GameStop Corp. (GME)

$ 233.34
12.95 (+5.88%)

Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 8,886.709,039.509,2969,363.807,9658,547.108,285.306,4665,089.804,780.284,489.594,216.583,960.163,719.34
Revenue (%)
Operating Cash Flow 632.40762.70480.50656.80537.10434.90325.10-414.50123.70209.87197.10185.12173.86163.29
Operating Cash Flow (%)
Capital Expenditure -139.60-125.60-159.60-173.20-142.70-113.40-93.70-78-60-69.91-65.65-61.66-57.91-54.39
Capital Expenditure (%)
Free Cash Flow 492.80637.10320.90483.60394.40321.50231.40-492.5063.70139.96131.45123.46115.95108.90

Weighted Average Cost Of Capital

Share price $ 233.34
Beta -1.817
Diluted Shares Outstanding 87.50
Cost of Debt
Tax Rate 20.23
After-tax Cost of Debt 3.99%
Risk-Free Rate
Market Risk Premium
Cost of Equity -12.002
Total Debt 362.70
Total Equity 20,417.25
Total Capital 20,779.95
Debt Weighting 1.75
Equity Weighting 98.25
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
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 8,886.709,039.509,2969,363.807,9658,547.108,285.306,4665,089.804,780.284,489.594,216.583,960.163,719.34
Operating Cash Flow 632.40762.70480.50656.80537.10434.90325.10-414.50123.70209.87197.10185.12173.86163.29
Capital Expenditure -139.60-125.60-159.60-173.20-142.70-113.40-93.70-78-60-69.91-65.65-61.66-57.91-54.39
Free Cash Flow 492.80637.10320.90483.60394.40321.50231.40-492.5063.70139.96131.45123.46115.95108.90
WACC
PV LFCF 179.59191.06203.26216.25230.06
SUM PV LFCF 900.65

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) -11.72
Free cash flow (t + 1) 113.25
Terminal Value -720.44
Present Value of Terminal Value -1,343.65

Intrinsic Value

Enterprise Value -443
Net Debt -145.80
Equity Value -297.20
Shares Outstanding 87.50
Equity Value Per Share -3.40