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Discounted Cash Flow (DCF) Analysis Levered


Zynga Inc.

Zynga Inc. (ZNGA)

Technology

Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 873.27690.40764.69741.37861.32907.14922.20937.51953.07968.90984.98
Revenue (%)
Operating Cash Flow 28.64-4.49-44.4360.0594.57168.2852.9353.8154.7155.6156.54
Operating Cash Flow (%)
Capital Expenditure 7.779.187.8010.319.9911.4310.8811.0611.2511.4311.62
Capital Expenditure (%)
Free Cash Flow 36.424.69-36.6370.36104.56179.7163.8264.8865.9567.0568.16

Weighted Average Cost Of Capital

Share price $ 7.13
Diluted Shares Outstanding 889.58
Cost of Debt
Tax Rate 41.59
After-tax Cost of Debt -2.03
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.78
Total Debt -
Total Equity 6,342.73
Total Capital 6,342.73
Debt Weighting 0.00
Equity Weighting 100.00
Wacc

Build Up Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 873.27690.40764.69741.37861.32907.14922.20937.51953.07968.90984.98
Operating Cash Flow 28.64-4.49-44.4360.0594.57168.2852.9353.8154.7155.6156.54
Capital Expenditure 7.779.187.8010.319.9911.4310.8811.0611.2511.4311.62
Free Cash Flow 36.424.69-36.6370.36104.56179.7163.8264.8865.9567.0568.16
WACC
PV LFCF 60.9159.0957.3355.6253.97
SUM PV LFCF 500.97

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.78
Free cash flow (t + 1) -13.15
Terminal Value -1,685.92
Present Value of Terminal Value -1,334.89

Intrinsic Value

Enterprise Value -1,481.71
Net Debt -581.21
Equity Value -900.50
Shares Outstanding 889.58
Equity Value Per Share 9.31