Discounted Cash Flow (DCF) Analysis Unlevered
GameStop Corp. (GME)
$ 233.34
12.95 (+5.88%)
Operating Data
Year A/P | 2013 Actual | 2014 Actual | 2015 Actual | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 8,886.70 | 9,039.50 | 9,296 | 9,363.80 | 7,965 | 8,547.10 | 8,285.30 | 6,466 | 5,089.80 | 4,780.28 | 4,489.59 | 4,216.58 | 3,960.16 | 3,719.34 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||||||
| EBITDA | 137.30 | 742.70 | 774.90 | 806.40 | 648.40 | 591.10 | 419.50 | -303.40 | -174 | 205.65 | 193.14 | 181.40 | 170.36 | 160 |
| EBITDA (%) | ||||||||||||||
| EBIT | -41.60 | 573.50 | 618.40 | 648.20 | 481.70 | 439.20 | 292.60 | -399.60 | -254.70 | 122.08 | 114.66 | 107.69 | 101.14 | 94.99 |
| EBIT (%) | ||||||||||||||
| Depreciation | 178.90 | 169.20 | 156.50 | 158.20 | 166.70 | 151.90 | 126.90 | 96.20 | 80.70 | 83.56 | 78.48 | 73.71 | 69.23 | 65.02 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2013 Actual | 2014 Actual | 2015 Actual | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Total Cash | 635.80 | 536.20 | 610.10 | 450.40 | 669.40 | 854.20 | 1,624.40 | 499.40 | 508.50 | 425.86 | 399.96 | 375.64 | 352.80 | 331.34 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||||||
| Account Receivables | 73.60 | 84.40 | 113.50 | 176.50 | 220.90 | 138.60 | 134.20 | 141.90 | 105.30 | 80.45 | 75.55 | 70.96 | 66.64 | 62.59 |
| Account Receivables (%) | ||||||||||||||
| Inventories | 1,171.30 | 1,198.90 | 1,144.80 | 1,163 | 1,121.50 | 1,250.30 | 1,250.50 | 859.70 | 602.50 | 637.97 | 599.18 | 562.74 | 528.52 | 496.38 |
| Inventories (%) | ||||||||||||||
| Accounts Payable | 870.90 | 783.90 | 815.60 | 631.90 | 616.60 | 892.30 | 1,051.90 | 380.80 | 341.80 | 411.51 | 386.48 | 362.98 | 340.91 | 320.18 |
| Accounts Payable (%) | ||||||||||||||
| Capital Expenditure | -139.60 | -125.60 | -159.60 | -173.20 | -142.70 | -113.40 | -93.70 | -78 | -60 | -69.91 | -65.65 | -61.66 | -57.91 | -54.39 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 233.34 |
|---|---|
| Beta | -1.817 |
| Diluted Shares Outstanding | 87.50 |
| Cost of Debt | |
| Tax Rate | 20.23 |
| After-tax Cost of Debt | 3.99% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | -12.002 |
| Total Debt | 362.70 |
| Total Equity | 20,417.25 |
| Total Capital | 20,779.95 |
| Debt Weighting | 1.75 |
| Equity Weighting | 98.25 |
| 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 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 8,886.70 | 9,039.50 | 9,296 | 9,363.80 | 7,965 | 8,547.10 | 8,285.30 | 6,466 | 5,089.80 | 4,780.28 | 4,489.59 | 4,216.58 | 3,960.16 | 3,719.34 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 137.30 | 742.70 | 774.90 | 806.40 | 648.40 | 591.10 | 419.50 | -303.40 | -174 | 205.65 | 193.14 | 181.40 | 170.36 | 160 |
| EBIT | -41.60 | 573.50 | 618.40 | 648.20 | 481.70 | 439.20 | 292.60 | -399.60 | -254.70 | 122.08 | 114.66 | 107.69 | 101.14 | 94.99 |
| Tax Rate | -500.67% | 37.73% | 35.38% | 35.57% | 17.61% | 90.96% | 10.64% | -10.33% | 20.23% | -29.21% | -29.21% | -29.21% | -29.21% | -29.21% |
| EBIAT | -249.88 | 357.13 | 399.63 | 417.62 | 396.87 | 39.70 | 261.48 | -440.89 | -203.17 | 157.74 | 148.15 | 139.14 | 130.68 | 122.73 |
| Depreciation | 178.90 | 169.20 | 156.50 | 158.20 | 166.70 | 151.90 | 126.90 | 96.20 | 80.70 | 83.56 | 78.48 | 73.71 | 69.23 | 65.02 |
| Accounts Receivable | - | -10.80 | -29.10 | -63 | -44.40 | 82.30 | 4.40 | -7.70 | 36.60 | 24.85 | 4.89 | 4.59 | 4.32 | 4.05 |
| Inventories | - | -27.60 | 54.10 | -18.20 | 41.50 | -128.80 | -0.20 | 390.80 | 257.20 | -35.47 | 38.80 | 36.44 | 34.22 | 32.14 |
| Accounts Payable | - | -87 | 31.70 | -183.70 | -15.30 | 275.70 | 159.60 | -671.10 | -39 | 69.71 | -25.02 | -23.50 | -22.07 | -20.73 |
| Capital Expenditure | -139.60 | -125.60 | -159.60 | -173.20 | -142.70 | -113.40 | -93.70 | -78 | -60 | -69.91 | -65.65 | -61.66 | -57.91 | -54.39 |
| UFCF | -210.58 | 275.33 | 453.23 | 137.72 | 402.67 | 307.40 | 458.48 | -710.69 | 72.33 | 230.49 | 179.64 | 168.72 | 158.46 | 148.82 |
| WACC | ||||||||||||||
| PV UFCF | 335.01 | 295.77 | 314.66 | 334.76 | 356.15 | |||||||||
| SUM PV UFCF | 1,275.27 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | -11.72 |
| Free cash flow (t + 1) | 154.77 |
| Terminal Value | -984.56 |
| Present Value of Terminal Value | -1,836.25 |
Intrinsic Value
| Enterprise Value | -560.98 |
|---|---|
| Net Debt | -145.80 |
| Equity Value | -415.18 |
| Shares Outstanding | 87.50 |
| Equity Value Per Share | -4.74 |