Discounted Cash Flow (DCF) Analysis Unlevered

GameStop Corp

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 8,886.709,039.509,296.009,363.807,965.008,547.108,285.306,466.006,213.235,970.335,736.935,512.665,297.16
Revenue (%)
EBITDA 138.30743.60777.70806.80725.20289.00-447.60-375.10217.83209.31201.13193.27185.71
EBITDA (%)
EBIT -40.60574.40621.20648.60558.50137.10-574.50-471.30107.95103.7399.6895.7892.04
EBIT (%)
Depreciation 178.90169.20156.50158.20166.70151.90126.9096.20109.88105.58101.4597.4993.68
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 635.80536.20610.10450.40669.40854.201,624.40499.40545.11523.80503.32483.65464.74
Total Cash (%)
Account Receivables 73.6084.40113.50176.50220.90138.60134.20141.90101.5697.5993.7890.1186.59
Account Receivables (%)
Inventories 1,171.301,198.901,144.801,163.001,121.501,250.301,250.50859.70840.93808.05776.46746.11716.94
Inventories (%)
Accounts Payable 870.90783.90815.60631.90616.60892.301,051.90380.80549.56528.08507.43487.60468.54
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 8,886.709,039.509,296.009,363.807,965.008,547.108,285.306,466.006,213.235,970.335,736.935,512.665,297.16
EBITDA 138.30743.60777.70806.80725.20289.00-447.60-375.10217.83209.31201.13193.27185.71
EBIT -40.60574.40621.20648.60558.50137.10-574.50-471.30107.95103.7399.6895.7892.04
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 -243.87357.69401.44417.88460.1412.39-513.40-520.00146.16140.44134.95129.68124.61
Depreciation 178.90169.20156.50158.20166.70151.90126.9096.20109.88105.58101.4597.4993.68
Accounts Receivable --10.80-29.10-63.00-44.4082.304.40-7.7040.343.973.823.673.52
Inventories --27.6054.10-18.2041.50-128.80-0.20390.8018.7732.8731.5930.3529.17
Accounts Payable --87.0031.70-183.70-15.30275.70159.60-671.10168.76-21.48-20.64-19.84-19.06
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 -204.57275.89455.04137.98465.94280.09-316.40-790.30390.78171.90165.18158.72152.52
WACC
PV UFCF 317.17125.69108.8194.2081.54
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