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 | 8,886.70 | 9,039.50 | 9,296 | 9,363.80 | 7,965 | 8,547.10 | 8,285.30 | 6,466 | 5,089.80 | 4,780.28 | 4,489.59 | 4,216.58 | 3,960.16 | 3,719.34 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||||||
| Operating Cash Flow | 632.40 | 762.70 | 480.50 | 656.80 | 537.10 | 434.90 | 325.10 | -414.50 | 123.70 | 209.87 | 197.10 | 185.12 | 173.86 | 163.29 |
| 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 | 492.80 | 637.10 | 320.90 | 483.60 | 394.40 | 321.50 | 231.40 | -492.50 | 63.70 | 139.96 | 131.45 | 123.46 | 115.95 | 108.90 |
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 | 8,886.70 | 9,039.50 | 9,296 | 9,363.80 | 7,965 | 8,547.10 | 8,285.30 | 6,466 | 5,089.80 | 4,780.28 | 4,489.59 | 4,216.58 | 3,960.16 | 3,719.34 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 632.40 | 762.70 | 480.50 | 656.80 | 537.10 | 434.90 | 325.10 | -414.50 | 123.70 | 209.87 | 197.10 | 185.12 | 173.86 | 163.29 |
| 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 | 492.80 | 637.10 | 320.90 | 483.60 | 394.40 | 321.50 | 231.40 | -492.50 | 63.70 | 139.96 | 131.45 | 123.46 | 115.95 | 108.90 |
| WACC | ||||||||||||||
| PV LFCF | 179.59 | 191.06 | 203.26 | 216.25 | 230.06 | |||||||||
| 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 |