Discounted Cash Flow (DCF) Analysis Levered
GameStop Corp. (GME)
$ 191.24
1.10 0.58%
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected | 2029 Projected | 2030 Projected | 2031 Projected | 2032 Projected | 2033 Projected | 2034 Projected | 2035 Projected | 2036 Projected |
| Revenue | 8,547.10 | 8,285.30 | 6,466 | 5,089.80 | 4,304.19 | 3,639.84 | 3,078.03 | 2,602.94 | 2,201.18 | 1,861.43 | 1,574.12 | 1,331.15 | 1,125.69 | 951.94 | 805.01 | 680.76 | 575.68 | 486.83 | 411.68 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||||||||||||
| Operating Cash Flow | 434.90 | 325.10 | -414.50 | 123.70 | 54.15 | 45.79 | 38.72 | 32.74 | 27.69 | 23.42 | 19.80 | 16.75 | 14.16 | 11.98 | 10.13 | 8.56 | 7.24 | 6.12 | 5.18 |
| Operating Cash Flow (%) | |||||||||||||||||||
| Capital Expenditure | -113.40 | -93.70 | -78 | -60 | -52.11 | -44.07 | -37.27 | -31.51 | -26.65 | -22.54 | -19.06 | -16.12 | -13.63 | -11.53 | -9.75 | -8.24 | -6.97 | -5.89 | -4.98 |
| Capital Expenditure (%) | |||||||||||||||||||
| Free Cash Flow | 321.50 | 231.40 | -492.50 | 63.70 | 2.04 | 1.72 | 1.46 | 1.23 | 1.04 | 0.88 | 0.74 | 0.63 | 0.53 | 0.45 | 0.38 | 0.32 | 0.27 | 0.23 | 0.19 |
Weighted Average Cost Of Capital
| Share price | $ 191.24 |
|---|---|
| Beta | -2.072 |
| Diluted Shares Outstanding | 65 |
| Cost of Debt | |
| Tax Rate | 20.23 |
| After-tax Cost of Debt | 3.99% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | -14.029 |
| Total Debt | 921 |
| Total Equity | 12,430.60 |
| Total Capital | 13,351.60 |
| Debt Weighting | 6.90 |
| Equity Weighting | 93.10 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected | 2029 Projected | 2030 Projected | 2031 Projected | 2032 Projected | 2033 Projected | 2034 Projected | 2035 Projected | 2036 Projected |
| Revenue | 8,547.10 | 8,285.30 | 6,466 | 5,089.80 | 4,304.19 | 3,639.84 | 3,078.03 | 2,602.94 | 2,201.18 | 1,861.43 | 1,574.12 | 1,331.15 | 1,125.69 | 951.94 | 805.01 | 680.76 | 575.68 | 486.83 | 411.68 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 434.90 | 325.10 | -414.50 | 123.70 | 54.15 | 45.79 | 38.72 | 32.74 | 27.69 | 23.42 | 19.80 | 16.75 | 14.16 | 11.98 | 10.13 | 8.56 | 7.24 | 6.12 | 5.18 |
| Capital Expenditure | -113.40 | -93.70 | -78 | -60 | -52.11 | -44.07 | -37.27 | -31.51 | -26.65 | -22.54 | -19.06 | -16.12 | -13.63 | -11.53 | -9.75 | -8.24 | -6.97 | -5.89 | -4.98 |
| Free Cash Flow | 321.50 | 231.40 | -492.50 | 63.70 | 2.04 | 1.72 | 1.46 | 1.23 | 1.04 | 0.88 | 0.74 | 0.63 | 0.53 | 0.45 | 0.38 | 0.32 | 0.27 | 0.23 | 0.19 |
| WACC | |||||||||||||||||||
| PV LFCF | 2.04 | 1.97 | 1.91 | 1.86 | 1.80 | 1.74 | 1.69 | 1.64 | 1.59 | 1.54 | 1.50 | 1.45 | 1.41 | 1.36 | 1.32 | ||||
| SUM PV LFCF | 2.05 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | -12.79 |
| Free cash flow (t + 1) | 0.20 |
| Terminal Value | -1.21 |
| Present Value of Terminal Value | -2.39 |
Intrinsic Value
| Enterprise Value | -0.34 |
|---|---|
| Net Debt | -799 |
| Equity Value | 798.66 |
| Shares Outstanding | 65 |
| Equity Value Per Share | 12.29 |