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Calculate the following for Activision Blizzard, Inc. (ATVI). Use data from yahoo finance or other online finance sources to get the financial data: The firms
Calculate the following for Activision Blizzard, Inc. (ATVI). Use data from yahoo finance or other online finance sources to get the financial data:
- The firms cost of equity using: CAPM or Discounted Cash Flow (DCF) models
- The firms cost of long term debt and preferred stock
- Cost of capital of the firm (WACC)
- The FCF of the firm in year 2018 and the expected future FCFs using growth assumptions.
- The intrinsic value of the firm and its common stock
Activision Blizzard, Inc. (ATVI) Income Statement
All numbers in thousands
| Revenue | 12/31/2018 | 12/31/2017 | 12/31/2016 | 12/31/2015 |
| Total Revenue | 7,500,000 | 7,017,000 | 6,608,000 | 4,664,000 |
| Cost of Revenue | 2,517,000 | 2,501,000 | 2,394,000 | 1,585,000 |
| Gross Profit | 4,983,000 | 4,516,000 | 4,214,000 | 3,079,000 |
| Operating Expenses | ||||
| Research Development | 1,101,000 | 1,069,000 | 958,000 | 646,000 |
| Selling General and Administrative | 1,884,000 | 2,108,000 | 1,797,000 | 1,109,000 |
| Non Recurring | - | - | - | - |
| Others | - | - | - | - |
| Total Operating Expenses | 5,502,000 | 5,678,000 | 5,149,000 | 3,340,000 |
| Operating Income or Loss | 1,998,000 | 1,339,000 | 1,459,000 | 1,324,000 |
| Income from Continuing Operations | ||||
| Total Other Income/Expenses Net | -121,000 | -188,000 | -353,000 | -203,000 |
| Earnings Before Interest and Taxes | 1,998,000 | 1,339,000 | 1,459,000 | 1,324,000 |
| Interest Expense | -140,000 | -162,000 | -217,000 | -200,000 |
| Income Before Tax | 1,877,000 | 1,151,000 | 1,106,000 | 1,121,000 |
| Income Tax Expense | 64,000 | 878,000 | 140,000 | 229,000 |
| Minority Interest | - | - | - | - |
| Net Income From Continuing Ops | 1,813,000 | 273,000 | 966,000 | 892,000 |
| Non-recurring Events | ||||
| Discontinued Operations | - | - | - | - |
| Extraordinary Items | - | - | - | - |
| Effect Of Accounting Changes | - | - | - | - |
| Other Items | - | - | - | - |
| Net Income | ||||
| Net Income | 1,813,000 | 273,000 | 966,000 | 892,000 |
| Preferred Stock And Other Adjustments | - | - | - | - |
| Net Income Applicable To Common Shares | 1,813,000 | 273,000 | 962,000 | 881,000 |
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