Discounted Cash Flow (DCF) Analysis Unlevered

Zynga Inc

Zynga Inc (ZNGA)

$8.98
-0.01 (-0.11%)

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 873.30690.40764.72741.42861.39907.211,321.661,440.521,570.061,711.261,865.162,032.89
Revenue (%)
EBITDA 68.21-147.03-73.30-59.9073.1674.81143.75-7.27-7.92-8.64-9.41-10.26
EBITDA (%)
EBIT -60.79-229.93-127.61-101.6742.8732.7664.31-117.74-128.32-139.86-152.44-166.15
EBIT (%)
Depreciation 129.0082.9054.3141.7730.2942.0679.45110.47120.40131.23143.03155.89
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
2024
Projected
Total Cash 1,125.50916.50987.25852.47681.38581.221,361.501,547.301,686.451,838.112,003.422,183.59
Total Cash (%)
Account Receivables 72.6092.9084.8477.56103.6891.63140.08156.52170.60185.94202.66220.89
Account Receivables (%)
Inventories ------------
Inventories (%)
Accounts Payable 21.0015.0029.6824.0031.7461.8157.8054.6759.5964.9470.7977.15
Accounts Payable (%)
Capital Expenditure -7.80-9.20-7.83-10.31-9.97-11.47-23.64-18.21-19.85-21.64-23.58-25.70
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 8.98
Beta 0.252
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 4.463
Total Debt 570.46
Total Equity 8,746.70
Total Capital 9,317.16
Debt Weighting 6.12
Equity Weighting 93.88
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 873.30690.40764.72741.42861.39907.211,321.661,440.521,570.061,711.261,865.162,032.89
EBITDA 68.21-147.03-73.30-59.9073.1674.81143.75-7.27-7.92-8.64-9.41-10.26
EBIT -60.79-229.93-127.61-101.6742.8732.7664.31-117.74-128.32-139.86-152.44-166.15
Tax Rate 42.99%3.13%6.66%-3.29%29.12%41.59%11.43%18.80%18.80%18.80%18.80%18.80%
EBIAT -34.66-222.73-119.11-105.0230.3919.1356.96-95.60-104.19-113.56-123.78-134.91
Depreciation 129.0082.9054.3141.7730.2942.0679.45110.47120.40131.23143.03155.89
Accounts Receivable --20.308.067.29-26.1212.05-48.45-16.44-14.08-15.34-16.72-18.23
Inventories ------------
Accounts Payable --6.0014.68-5.687.7430.07-4.01-3.134.925.365.846.37
Capital Expenditure -7.80-9.20-7.83-10.31-9.97-11.47-23.64-18.21-19.85-21.64-23.58-25.70
UFCF 86.54-175.33-49.90-71.9532.3391.8460.30-22.92-12.81-13.96-15.21-16.58
WACC
PV UFCF -21.94-11.73-12.24-12.78-13.33
SUM PV UFCF -72.02

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.46
Free cash flow (t + 1) -17.24
Terminal Value -3,748.48
Present Value of Terminal Value -3,013.73

Intrinsic Value

Enterprise Value -3,085.76
Net Debt 147.13
Equity Value -3,232.89
Shares Outstanding 974.02
Equity Value Per Share -3.32