Discounted Cash Flow (DCF) Analysis Unlevered
GameStop Corp (GME)
$43.03
3.91 (+9.99%)
Operating Data
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 (%) | |||||||||||||
| EBITDA | 138.30 | 743.60 | 777.70 | 806.80 | 725.20 | 289.00 | -447.60 | -375.10 | 217.83 | 209.31 | 201.13 | 193.27 | 185.71 |
| EBITDA (%) | |||||||||||||
| EBIT | -40.60 | 574.40 | 621.20 | 648.60 | 558.50 | 137.10 | -574.50 | -471.30 | 107.95 | 103.73 | 99.68 | 95.78 | 92.04 |
| EBIT (%) | |||||||||||||
| Depreciation | 178.90 | 169.20 | 156.50 | 158.20 | 166.70 | 151.90 | 126.90 | 96.20 | 109.88 | 105.58 | 101.45 | 97.49 | 93.68 |
| Depreciation (%) |
Balance Sheet Data
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 |
| Total Cash | 635.80 | 536.20 | 610.10 | 450.40 | 669.40 | 854.20 | 1,624.40 | 499.40 | 545.11 | 523.80 | 503.32 | 483.65 | 464.74 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | |||||||||||||
| Account Receivables | 73.60 | 84.40 | 113.50 | 176.50 | 220.90 | 138.60 | 134.20 | 141.90 | 101.56 | 97.59 | 93.78 | 90.11 | 86.59 |
| Account Receivables (%) | |||||||||||||
| Inventories | 1,171.30 | 1,198.90 | 1,144.80 | 1,163.00 | 1,121.50 | 1,250.30 | 1,250.50 | 859.70 | 840.93 | 808.05 | 776.46 | 746.11 | 716.94 |
| Inventories (%) | |||||||||||||
| Accounts Payable | 870.90 | 783.90 | 815.60 | 631.90 | 616.60 | 892.30 | 1,051.90 | 380.80 | 549.56 | 528.08 | 507.43 | 487.60 | 468.54 |
| Accounts Payable (%) | |||||||||||||
| 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 (%) |
Weighted Average Cost Of Capital
| Share price | $ 43.03 |
|---|---|
| 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 | 3,765.13 |
| Total Capital | 4,184.93 |
| Debt Weighting | 10.03 |
| Equity Weighting | 89.97 |
| Wacc |
Build Up Free Cash
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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 138.30 | 743.60 | 777.70 | 806.80 | 725.20 | 289.00 | -447.60 | -375.10 | 217.83 | 209.31 | 201.13 | 193.27 | 185.71 |
| EBIT | -40.60 | 574.40 | 621.20 | 648.60 | 558.50 | 137.10 | -574.50 | -471.30 | 107.95 | 103.73 | 99.68 | 95.78 | 92.04 |
| Tax Rate | -500.67% | 37.73% | 35.38% | 35.57% | 17.61% | 90.96% | 10.64% | -10.33% | -35.39% | -35.39% | -35.39% | -35.39% | -35.39% |
| EBIAT | -243.87 | 357.69 | 401.44 | 417.88 | 460.14 | 12.39 | -513.40 | -520.00 | 146.16 | 140.44 | 134.95 | 129.68 | 124.61 |
| Depreciation | 178.90 | 169.20 | 156.50 | 158.20 | 166.70 | 151.90 | 126.90 | 96.20 | 109.88 | 105.58 | 101.45 | 97.49 | 93.68 |
| Accounts Receivable | - | -10.80 | -29.10 | -63.00 | -44.40 | 82.30 | 4.40 | -7.70 | 40.34 | 3.97 | 3.82 | 3.67 | 3.52 |
| Inventories | - | -27.60 | 54.10 | -18.20 | 41.50 | -128.80 | -0.20 | 390.80 | 18.77 | 32.87 | 31.59 | 30.35 | 29.17 |
| Accounts Payable | - | -87.00 | 31.70 | -183.70 | -15.30 | 275.70 | 159.60 | -671.10 | 168.76 | -21.48 | -20.64 | -19.84 | -19.06 |
| 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 |
| UFCF | -204.57 | 275.89 | 455.04 | 137.98 | 465.94 | 280.09 | -316.40 | -790.30 | 390.78 | 171.90 | 165.18 | 158.72 | 152.52 |
| WACC | |||||||||||||
| PV UFCF | 317.17 | 125.69 | 108.81 | 94.20 | 81.54 | ||||||||
| SUM PV UFCF | 807.43 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 11.00 |
| Free cash flow (t + 1) | 158.62 |
| Terminal Value | 2,266.01 |
| Present Value of Terminal Value | 1,344.77 |
Intrinsic Value
| Enterprise Value | 2,152.19 |
|---|---|
| Net Debt | -79.60 |
| Equity Value | 2,231.79 |
| Shares Outstanding | 87.50 |
| Equity Value Per Share | 25.51 |