Discounted Cash Flow (DCF) Analysis Levered

Zynga Inc

Zynga Inc (ZNGA)

$8.96
0.11 (+1.24%)

Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
Revenue 873.30690.40764.72741.42861.39907.211,321.661,440.521,570.061,711.261,865.162,032.89
Revenue (%)
Operating Cash Flow 28.70-4.50-44.4560.0294.38168.24262.83111.75121.80132.76144.69157.71
Operating Cash Flow (%)
Capital Expenditure -7.80-9.20-7.83-10.31-9.97-11.47-23.64-18.21-19.85-21.64-23.58-25.70
Capital Expenditure (%)
Free Cash Flow 20.90-13.70-52.2849.7084.40156.77239.1993.54101.95111.12121.11132.00

Weighted Average Cost Of Capital

Share price $ 8.96
Beta 0.275
Diluted Shares Outstanding 974.02
Cost of Debt
Tax Rate 11.43
After-tax Cost of Debt 4.43%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.649
Total Debt 570.46
Total Equity 8,727.22
Total Capital 9,297.68
Debt Weighting 6.14
Equity Weighting 93.86
Wacc

Build Up Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
Revenue 873.30690.40764.72741.42861.39907.211,321.661,440.521,570.061,711.261,865.162,032.89
Operating Cash Flow 28.70-4.50-44.4560.0294.38168.24262.83111.75121.80132.76144.69157.71
Capital Expenditure -7.80-9.20-7.83-10.31-9.97-11.47-23.64-18.21-19.85-21.64-23.58-25.70
Free Cash Flow 20.90-13.70-52.2849.7084.40156.77239.1993.54101.95111.12121.11132.00
WACC
PV LFCF 89.3993.1196.98101.02105.22
SUM PV LFCF 485.71

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.64
Free cash flow (t + 1) 137.28
Terminal Value 21,450.37
Present Value of Terminal Value 17,098.03

Intrinsic Value

Enterprise Value 17,583.74
Net Debt 147.13
Equity Value 17,436.61
Shares Outstanding 974.02
Equity Value Per Share 17.90