Discounted Cash Flow (DCF) Analysis Levered

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 | 8,886.70 | 9,039.50 | 9,296.00 | 9,363.80 | 7,965.00 | 8,547.10 | 8,285.30 | 6,466.00 | 6,213.23 | 5,970.33 | 5,736.93 | 5,512.66 | 5,297.16 |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | |||||||||||||
Operating Cash Flow | 632.40 | 762.70 | 480.50 | 656.80 | 537.10 | 434.90 | 325.10 | -414.50 | 288.00 | 276.74 | 265.92 | 255.52 | 245.53 |
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 | 492.80 | 637.10 | 320.90 | 483.60 | 394.40 | 321.50 | 231.40 | -493.00 | 194.87 | 187.26 | 179.94 | 172.90 | 166.14 |
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 | 8,886.70 | 9,039.50 | 9,296.00 | 9,363.80 | 7,965.00 | 8,547.10 | 8,285.30 | 6,466.00 | 6,213.23 | 5,970.33 | 5,736.93 | 5,512.66 | 5,297.16 |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 632.40 | 762.70 | 480.50 | 656.80 | 537.10 | 434.90 | 325.10 | -414.50 | 288.00 | 276.74 | 265.92 | 255.52 | 245.53 |
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 | 492.80 | 637.10 | 320.90 | 483.60 | 394.40 | 321.50 | 231.40 | -493.00 | 194.87 | 187.26 | 179.94 | 172.90 | 166.14 |
WACC | |||||||||||||
PV LFCF | 175.75 | 152.31 | 131.99 | 114.39 | 99.13 | ||||||||
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 |