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 |