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 8,886.709,039.509,2969,363.807,9658,547.108,285.306,4665,089.804,780.284,489.594,216.583,960.163,719.34
Revenue (%)
EBITDA 137.30742.70774.90806.40648.40591.10419.50-303.40-174205.65193.14181.40170.36160
EBITDA (%)
EBIT -41.60573.50618.40648.20481.70439.20292.60-399.60-254.70122.08114.66107.69101.1494.99
EBIT (%)
Depreciation 178.90169.20156.50158.20166.70151.90126.9096.2080.7083.5678.4873.7169.2365.02
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 635.80536.20610.10450.40669.40854.201,624.40499.40508.50425.86399.96375.64352.80331.34
Total Cash (%)
Account Receivables 73.6084.40113.50176.50220.90138.60134.20141.90105.3080.4575.5570.9666.6462.59
Account Receivables (%)
Inventories 1,171.301,198.901,144.801,1631,121.501,250.301,250.50859.70602.50637.97599.18562.74528.52496.38
Inventories (%)
Accounts Payable 870.90783.90815.60631.90616.60892.301,051.90380.80341.80411.51386.48362.98340.91320.18
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 8,886.709,039.509,2969,363.807,9658,547.108,285.306,4665,089.804,780.284,489.594,216.583,960.163,719.34
EBITDA 137.30742.70774.90806.40648.40591.10419.50-303.40-174205.65193.14181.40170.36160
EBIT -41.60573.50618.40648.20481.70439.20292.60-399.60-254.70122.08114.66107.69101.1494.99
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 -249.88357.13399.63417.62396.8739.70261.48-440.89-203.17157.74148.15139.14130.68122.73
Depreciation 178.90169.20156.50158.20166.70151.90126.9096.2080.7083.5678.4873.7169.2365.02
Accounts Receivable --10.80-29.10-63-44.4082.304.40-7.7036.6024.854.894.594.324.05
Inventories --27.6054.10-18.2041.50-128.80-0.20390.80257.20-35.4738.8036.4434.2232.14
Accounts Payable --8731.70-183.70-15.30275.70159.60-671.10-3969.71-25.02-23.50-22.07-20.73
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 -210.58275.33453.23137.72402.67307.40458.48-710.6972.33230.49179.64168.72158.46148.82
WACC
PV UFCF 335.01295.77314.66334.76356.15
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