Discounted Cash Flow (DCF) Analysis Unlevered
Zynga Inc. (ZNGA)
$6.7
-0.04 (-0.59%)
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 | 873.27 | 690.40 | 764.69 | 741.37 | 861.32 | 907.14 | 1,321.53 | 1,440.33 | 1,569.82 | 1,710.95 | 1,864.76 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||||
| EBITDA | 80.95 | -151.82 | -86.03 | -72.14 | 55.38 | 51.53 | -187.92 | -73.60 | -80.22 | -87.43 | -95.29 |
| EBITDA (%) | |||||||||||
| EBIT | -65.67 | -244.75 | -146.06 | -114.24 | 25.75 | 6.71 | -272.23 | -194.01 | -211.45 | -230.46 | -251.18 |
| EBIT (%) | |||||||||||
| Depreciation | 146.62 | 92.93 | 60.03 | 42.11 | 29.63 | 44.81 | 84.31 | 120.41 | 131.24 | 143.04 | 155.89 |
| 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 |
| Total Cash | 1,125.47 | 916.51 | 987.22 | 852.50 | 681.39 | 581.21 | 1,361.44 | 1,547.21 | 1,686.30 | 1,837.90 | 2,003.12 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | |||||||||||
| Account Receivables | 65.67 | 89.61 | 79.60 | 77.25 | 103.70 | 91.62 | 140.08 | 152.39 | 166.09 | 181.02 | 197.29 |
| Account Receivables (%) | |||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | |||||||||||
| Accounts Payable | 20.96 | 14.98 | 29.67 | 24.02 | 18.95 | 26.85 | 27.75 | 39.03 | 42.54 | 46.37 | 50.53 |
| 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 | $ 6.7 |
|---|---|
| Diluted Shares Outstanding | 974.02 |
| Cost of Debt | |
| Tax Rate | 11.43 |
| After-tax Cost of Debt | -0.52 |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 4.78 |
| Total Debt | 130.30 |
| Total Equity | 6,525.93 |
| Total Capital | 6,656.23 |
| Debt Weighting | 1.96 |
| Equity Weighting | 98.04 |
| 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 | 873.27 | 690.40 | 764.69 | 741.37 | 861.32 | 907.14 | 1,321.53 | 1,440.33 | 1,569.82 | 1,710.95 | 1,864.76 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 80.95 | -151.82 | -86.03 | -72.14 | 55.38 | 51.53 | -187.92 | -73.60 | -80.22 | -87.43 | -95.29 |
| EBIT | -65.67 | -244.75 | -146.06 | -114.24 | 25.75 | 6.71 | -272.23 | -194.01 | -211.45 | -230.46 | -251.18 |
| Tax Rate | 42.99% | 3.14% | 6.66% | -3.29% | 29.12% | 41.59% | 11.43% | 18.81% | 18.81% | 18.81% | 18.81% |
| EBIAT | -37.44 | -237.06 | -136.33 | -118.00 | 18.25 | 3.92 | -241.12 | -157.53 | -171.69 | -187.12 | -203.94 |
| Depreciation | 146.62 | 92.93 | 60.03 | 42.11 | 29.63 | 44.81 | 84.31 | 120.41 | 131.24 | 143.04 | 155.89 |
| Accounts Receivable | - | -23.94 | 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 | -5.07 | 7.90 | 0.90 | 11.28 | 3.51 | 3.82 | 4.17 |
| Capital Expenditure | - | -1.41 | 1.38 | -2.51 | 0.31 | -1.44 | -12.23 | 5.51 | -1.63 | -1.78 | -1.94 |
| UFCF | 109.18 | -175.46 | -50.22 | -81.69 | 16.67 | 67.28 | -216.59 | -32.63 | -52.27 | -56.97 | -62.09 |
| WACC | |||||||||||
| PV UFCF | -31.15 | -47.62 | -49.54 | -51.53 | |||||||
| SUM PV UFCF | -389.12 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.77 |
| Free cash flow (t + 1) | -64.58 |
| Terminal Value | -8,386.70 |
| Present Value of Terminal Value | -6,643.64 |
Intrinsic Value
| Enterprise Value | -7,032.77 |
|---|---|
| Net Debt | -1,231.14 |
| Equity Value | -5,801.63 |
| Shares Outstanding | 974.02 |
| Equity Value Per Share | -5.96 |