Discounted Cash Flow (DCF) Analysis Unlevered
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 | 873.27 | 690.41 | 764.72 | 741.42 | 861.39 | 907.21 | 1,321.66 | 1,440.52 | 1,570.08 | 1,711.28 | 1,865.19 | 2,032.94 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||||
| EBITDA | 83.85 | -161.85 | -91.74 | -31.12 | 56.02 | 48.82 | 143.75 | -14.97 | -16.32 | -17.78 | -19.38 | -21.13 |
| EBITDA (%) | ||||||||||||
| EBIT | -45.20 | -244.74 | -146.06 | -72.89 | 25.72 | 6.76 | 64.31 | -125.45 | -136.73 | -149.02 | -162.43 | -177.03 |
| EBIT (%) | ||||||||||||
| Depreciation | 129.05 | 82.89 | 54.31 | 41.77 | 30.29 | 42.06 | 79.45 | 110.48 | 120.41 | 131.24 | 143.04 | 155.91 |
| 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 | 1,125.50 | 916.52 | 987.25 | 852.47 | 681.38 | 581.22 | 1,361.50 | 1,547.32 | 1,686.48 | 1,838.15 | 2,003.47 | 2,183.65 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||||
| Account Receivables | 72.61 | 92.91 | 84.84 | 77.56 | 103.68 | 91.63 | 140.08 | 156.53 | 170.61 | 185.95 | 202.67 | 220.90 |
| Account Receivables (%) | ||||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||||
| Accounts Payable | 20.97 | 14.97 | 61.38 | 48.12 | 56.98 | 49.48 | 69.24 | 74.89 | 81.63 | 88.97 | 96.97 | 105.69 |
| 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 | 873.27 | 690.41 | 764.72 | 741.42 | 861.39 | 907.21 | 1,321.66 | 1,440.52 | 1,570.08 | 1,711.28 | 1,865.19 | 2,032.94 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 83.85 | -161.85 | -91.74 | -31.12 | 56.02 | 48.82 | 143.75 | -14.97 | -16.32 | -17.78 | -19.38 | -21.13 |
| EBIT | -45.20 | -244.74 | -146.06 | -72.89 | 25.72 | 6.76 | 64.31 | -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 | -75.29 | 18.23 | 3.95 | 56.96 | -101.85 | -111.01 | -121.00 | -131.88 | -143.74 |
| Depreciation | 129.05 | 82.89 | 54.31 | 41.77 | 30.29 | 42.06 | 79.45 | 110.48 | 120.41 | 131.24 | 143.04 | 155.91 |
| Accounts Receivable | - | -20.31 | 8.07 | 7.29 | -26.12 | 12.05 | -48.45 | -16.45 | -14.08 | -15.34 | -16.72 | -18.23 |
| Inventories | - | - | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | -6.01 | 46.41 | -13.26 | 8.87 | -7.50 | 19.76 | 5.65 | 6.74 | 7.34 | 8.00 | 8.72 |
| 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 | -49.80 | 21.30 | 39.08 | 84.08 | -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 |