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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 28.64-4.49-44.4360.0594.40168.2852.9353.8154.7155.6156.54
Operating Cash Flow (%)
Capital Expenditure -4.72-4.14-7.04-7.12-9.73-11.43-8.30-8.44-8.58-8.72-8.86
Capital Expenditure (%)
Free Cash Flow 23.93-8.63-51.4652.9384.67156.8544.6345.3846.1346.8947.67

Weighted Average Cost Of Capital

Share price $ 5.57
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 5.63
Total Debt -
Total Equity 4,954.98
Total Capital 4,954.98
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 28.64-4.49-44.4360.0594.40168.2852.9353.8154.7155.6156.54
Capital Expenditure -4.72-4.14-7.04-7.12-9.73-11.43-8.30-8.44-8.58-8.72-8.86
Free Cash Flow 23.93-8.63-51.4652.9384.67156.8544.6345.3846.1346.8947.67
WACC
PV LFCF 40.0038.5037.0535.6634.32
SUM PV LFCF 332.16

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.63
Free cash flow (t + 1) -8.59
Terminal Value -526.82
Present Value of Terminal Value -400.61

Intrinsic Value

Enterprise Value -510.64
Net Debt -616.22
Equity Value 105.58
Shares Outstanding 889.58
Equity Value Per Share 3.67

Results Levered DCF

Wacc / Long-term Growth -4 (%)-3 (%)-2 (%)-1 (%)0 (%)1 (%)2 (%)3 (%)4 (%)
7.63 (%) 1.63 Sell 1.72 Sell 1.85 Sell 2.02 Sell 2.30 Sell 2.79 Sell 3.87 Sell 8.40 Buy -11.54 Sell
7.13 (%) 1.58 Sell 1.66 Sell 1.77 Sell 1.91 Sell 2.13 Sell 2.48 Sell 3.16 Sell 5.06 Sell 36.08 Buy
6.63 (%) 1.54 Sell 1.61 Sell 1.70 Sell 1.82 Sell 1.99 Sell 2.26 Sell 2.72 Sell 3.77 Sell 8.12 Buy
6.13 (%) 1.50 Sell 1.56 Sell 1.64 Sell 1.74 Sell 1.88 Sell 2.09 Sell 2.43 Sell 3.08 Sell 4.91 Sell
5.63 (%) 1.47 Sell 1.52 Sell 1.59 Sell 1.67 Sell 1.79 Sell 1.96 Sell 2.21 Sell 2.66 Sell 3.67 Sell
5.13 (%) 1.44 Sell 1.49 Sell 1.55 Sell 1.62 Sell 1.72 Sell 1.85 Sell 2.05 Sell 2.38 Sell 3.01 Sell
4.63 (%) 1.42 Sell 1.46 Sell 1.51 Sell 1.57 Sell 1.65 Sell 1.76 Sell 1.92 Sell 2.17 Sell 2.60 Sell
4.13 (%) 1.39 Sell 1.43 Sell 1.47 Sell 1.53 Sell 1.60 Sell 1.69 Sell 1.82 Sell 2.01 Sell 2.33 Sell
3.63 (%) 1.37 Sell 1.40 Sell 1.44 Sell 1.49 Sell 1.55 Sell 1.63 Sell 1.74 Sell 1.89 Sell 2.13 Sell