Discounted Cash Flow (DCF) Analysis Unlevered

GameStop Corp. (GME)

$ 191.24
1.10 0.58%

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
2029
Projected
2030
Projected
2031
Projected
2032
Projected
2033
Projected
2034
Projected
2035
Projected
2036
Projected
Revenue 8,547.108,285.306,4665,089.804,304.193,639.843,078.032,602.942,201.181,861.431,574.121,331.151,125.69951.94805.01680.76575.68486.83411.68
Revenue (%)
EBITDA 289-468.90-298.60-155.90-107.17-90.62-76.64-64.81-54.80-46.35-39.19-33.14-28.03-23.70-20.04-16.95-14.33-12.12-10.25
EBITDA (%)
EBIT 137.10-595.80-394.80-236.60-175.84-148.70-125.75-106.34-89.93-76.05-64.31-54.38-45.99-38.89-32.89-27.81-23.52-19.89-16.82
EBIT (%)
Depreciation 151.90126.9096.2080.7068.6758.0749.1141.5335.1229.7025.1221.2417.9615.1912.8410.869.197.776.57
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
2029
Projected
2030
Projected
2031
Actual
2032
Projected
2033
Projected
2034
Projected
2035
Projected
2036
Projected
Total Cash 854.201,624.40499.40508.50509.12430.54364.08307.89260.37220.18186.19157.46133.15112.6095.2280.5268.0957.5848.70
Total Cash (%)
Account Receivables 138.60134.20141.90105.3080.7568.2957.7548.8441.3034.9229.5324.9721.1217.8615.1012.7710.809.137.72
Account Receivables (%)
Inventories 1,250.301,250.50859.70602.50590.26499.15422.11356.96301.86255.27215.87182.55154.37130.55110.4093.3678.9566.7656.46
Inventories (%)
Accounts Payable 892.301,051.90380.80341.80384.58325.22275.03232.58196.68166.32140.65118.94100.5885.0671.9360.8351.4443.5036.78
Accounts Payable (%)
Capital Expenditure -113.40-93.70-78-60-52.11-44.07-37.27-31.51-26.65-22.54-19.06-16.12-13.63-11.53-9.75-8.24-6.97-5.89-4.98
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 191.24
Beta -2.072
Diluted Shares Outstanding 65
Cost of Debt
Tax Rate 20.23
After-tax Cost of Debt 3.99%
Risk-Free Rate
Market Risk Premium
Cost of Equity -14.029
Total Debt 921
Total Equity 12,430.60
Total Capital 13,351.60
Debt Weighting 6.90
Equity Weighting 93.10
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
2029
Projected
2030
Projected
2031
Projected
2032
Projected
2033
Projected
2034
Projected
2035
Projected
2036
Projected
Revenue 8,547.108,285.306,4665,089.804,304.193,639.843,078.032,602.942,201.181,861.431,574.121,331.151,125.69951.94805.01680.76575.68486.83411.68
EBITDA 289-468.90-298.60-155.90-107.17-90.62-76.64-64.81-54.80-46.35-39.19-33.14-28.03-23.70-20.04-16.95-14.33-12.12-10.25
EBIT 137.10-595.80-394.80-236.60-175.84-148.70-125.75-106.34-89.93-76.05-64.31-54.38-45.99-38.89-32.89-27.81-23.52-19.89-16.82
Tax Rate 90.96%10.64%-10.33%20.23%27.87%27.87%27.87%27.87%27.87%27.87%27.87%27.87%27.87%27.87%27.87%27.87%27.87%27.87%27.87%
EBIAT 12.39-532.43-435.59-188.74-126.83-107.25-90.70-76.70-64.86-54.85-46.38-39.22-33.17-28.05-23.72-20.06-16.96-14.34-12.13
Depreciation 151.90126.9096.2080.7068.6758.0749.1141.5335.1229.7025.1221.2417.9615.1912.8410.869.197.776.57
Accounts Receivable -4.40-7.7036.6024.5512.4610.548.917.546.375.394.563.853.262.762.331.971.671.41
Inventories --0.20390.80257.2012.2491.1177.0465.1555.1046.5939.4033.3228.1823.8320.1517.0414.4112.1910.30
Accounts Payable -159.60-671.10-3942.78-59.36-50.20-42.45-35.90-30.36-25.67-21.71-18.36-15.52-13.13-11.10-9.39-7.94-6.71
Capital Expenditure -113.40-93.70-78-60-52.11-44.07-37.27-31.51-26.65-22.54-19.06-16.12-13.63-11.53-9.75-8.24-6.97-5.89-4.98
UFCF 50.89-335.43-705.3986.76-30.69-49.03-41.47-35.07-29.65-25.08-21.21-17.93-15.16-12.82-10.84-9.17-7.76-6.56-5.55
WACC
PV UFCF -23.34-42.76-41.47-40.21-38.99-37.81-36.66-35.55-34.47-33.42-32.41-31.43-30.47-29.55-28.65
SUM PV UFCF -58.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) -12.79
Free cash flow (t + 1) -5.77
Terminal Value 34.35
Present Value of Terminal Value 68.10

Intrinsic Value

Enterprise Value 9.58
Net Debt -799
Equity Value 808.58
Shares Outstanding 65
Equity Value Per Share 12.44