Discounted Cash Flow (DCF) Analysis Unlevered

Zynga Inc

Zynga Inc (ZNGA)

$9.67
-0.24 (-2.42%)

Operating Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
Revenue 873.27690.41764.72741.42861.39907.211,321.661,440.521,570.081,711.281,865.192,032.94
Revenue (%)
EBITDA 83.85-161.85-91.74-31.1256.0248.82143.75-14.97-16.32-17.78-19.38-21.13
EBITDA (%)
EBIT -45.20-244.74-146.06-72.8925.726.7664.31-125.45-136.73-149.02-162.43-177.03
EBIT (%)
Depreciation 129.0582.8954.3141.7730.2942.0679.45110.48120.41131.24143.04155.91
Depreciation (%)

Balance Sheet Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
Total Cash 1,125.50916.52987.25852.47681.38581.221,361.501,547.321,686.481,838.152,003.472,183.65
Total Cash (%)
Account Receivables 72.6192.9184.8477.56103.6891.63140.08156.53170.61185.95202.67220.90
Account Receivables (%)
Inventories ------------
Inventories (%)
Accounts Payable 20.9714.9761.3848.1256.9849.4869.2474.8981.6388.9796.97105.69
Accounts Payable (%)
Capital Expenditure -7.81-9.20-7.83-10.31-9.97-11.47-23.64-18.22-19.86-21.64-23.59-25.71
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 9.67
Beta 0.246
Diluted Shares Outstanding 974.02
Cost of Debt
Tax Rate 11.43
After-tax Cost of Debt 4.43%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.419
Total Debt 716.51
Total Equity 9,418.77
Total Capital 10,135.28
Debt Weighting 7.07
Equity Weighting 92.93
Wacc

Build Up Free Cash

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
Revenue 873.27690.41764.72741.42861.39907.211,321.661,440.521,570.081,711.281,865.192,032.94
EBITDA 83.85-161.85-91.74-31.1256.0248.82143.75-14.97-16.32-17.78-19.38-21.13
EBIT -45.20-244.74-146.06-72.8925.726.7664.31-125.45-136.73-149.02-162.43-177.03
Tax Rate 42.99%3.14%6.66%-3.29%29.12%41.59%11.43%18.81%18.81%18.81%18.81%18.81%
EBIAT -25.77-237.05-136.33-75.2918.233.9556.96-101.85-111.01-121.00-131.88-143.74
Depreciation 129.0582.8954.3141.7730.2942.0679.45110.48120.41131.24143.04155.91
Accounts Receivable --20.318.077.29-26.1212.05-48.45-16.45-14.08-15.34-16.72-18.23
Inventories ------------
Accounts Payable --6.0146.41-13.268.87-7.5019.765.656.747.348.008.72
Capital Expenditure -7.81-9.20-7.83-10.31-9.97-11.47-23.64-18.22-19.86-21.64-23.59-25.71
UFCF 95.47-189.67-35.36-49.8021.3039.0884.08-20.39-17.80-19.40-21.15-23.05
WACC
PV UFCF -19.53-16.33-17.04-17.79-18.57
SUM PV UFCF -89.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.42
Free cash flow (t + 1) -23.97
Terminal Value -5,707.01
Present Value of Terminal Value -4,597.16

Intrinsic Value

Enterprise Value -4,686.41
Net Debt 147.13
Equity Value -4,833.54
Shares Outstanding 974.02
Equity Value Per Share -4.96