Discounted Cash Flow (DCF) Analysis Unlevered

Zynga Inc. (ZNGA)

$9.25

0.14 (+1.54%)

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
Revenue	873.30	690.43	764.72	741.40	861.36	907.18	1,321.58	1,440.39	1,569.88	1,711.01	1,864.83
Revenue (%)
EBITDA	64.10	-150.31	-75.86	-62.94	67.87	68.49	143.79	-13.40	-14.60	-15.91	-17.34
EBITDA (%)
EBIT	-64.89	-233.23	-130.16	-104.69	37.56	26.40	64.36	-123.87	-135.01	-147.15	-160.38
EBIT (%)
Depreciation	128.99	82.92	54.30	41.74	30.32	42.09	79.43	110.48	120.41	131.23	143.03
Depreciation (%)

Balance Sheet Data

Year A/P	2013 Projected	2014 Projected	2015 Projected	2016 Projected	2017 Projected	2018 Projected	2019 Projected	2020 Projected	2021 Projected	2022 Projected	2023 Projected
Total Cash	1,125.51	916.48	987.26	852.46	681.42	581.23	1,361.49	1,547.12	1,686.21	1,837.80	2,003.02
Total Cash (%)
Account Receivables	65.67	89.62	79.61	77.25	103.71	91.63	140.09	152.39	166.09	181.03	197.30
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	20.96	14.98	29.67	24.02	31.70	61.78	57.75	54.73	59.66	65.02	70.86
Accounts Payable (%)
Capital Expenditure	-7.77	-9.18	-7.80	-10.31	-9.99	-11.43	-23.66	-18.15	-19.78	-21.56	-23.50
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 9.25
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	4.78
Total Debt	570.46
Total Equity	9,009.68
Total Capital	9,580.14
Debt Weighting	5.95
Equity Weighting	94.05
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
Revenue	873.30	690.43	764.72	741.40	861.36	907.18	1,321.58	1,440.39	1,569.88	1,711.01	1,864.83
EBITDA	64.10	-150.31	-75.86	-62.94	67.87	68.49	143.79	-13.40	-14.60	-15.91	-17.34
EBIT	-64.89	-233.23	-130.16	-104.69	37.56	26.40	64.36	-123.87	-135.01	-147.15	-160.38
Tax Rate	42.99%	3.13%	6.66%	-3.29%	29.12%	41.59%	11.43%	18.80%	18.80%	18.80%	18.80%
EBIAT	-36.99	-225.93	-121.49	-108.13	26.62	15.42	57.00	-100.58	-109.62	-119.48	-130.22
Depreciation	128.99	82.92	54.30	41.74	30.32	42.09	79.43	110.48	120.41	131.23	143.03
Accounts Receivable	-	-23.95	10.01	2.35	-26.45	12.08	-48.46	-12.31	-13.70	-14.93	-16.27
Inventories	-	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	-5.98	14.69	-5.65	7.68	30.08	-4.03	-3.02	4.92	5.36	5.85
Capital Expenditure	-	1.41	-1.38	2.51	-0.31	1.44	12.23	-5.51	1.63	1.78	1.94
UFCF	91.99	-171.52	-43.87	-67.18	37.85	101.11	96.17	-10.93	3.64	3.97	4.32
WACC
PV UFCF								-10.44	3.32	3.45	3.59
SUM PV UFCF											13.53

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.75
Free cash flow (t + 1)	4.50
Terminal Value	599.66
Present Value of Terminal Value	475.48

Intrinsic Value

Enterprise Value	489.01
Net Debt	147.13
Equity Value	341.88
Shares Outstanding	974.02
Equity Value Per Share	0.35

Financial Modeling Prep is a new concept that informs you about stock markets information (news, currencies and stock prices). We always strive to give you the best and most updated information. We also gives you free financial modeling methodology through our academy. Most investment banking firms follow our guidelines to get discounted cash flow statement of companies to see if they are undervalued, overvalued or simply at par value. You can find all financial models and valuation techniques that is used in corporate finance to get companies intrinsic valuation. Most private equity firm use financial modeling for decision making when it comes to hold, buy or sell a particular stock.

You can support our API by donating via Paypal !