Stock Analysis on Net

Activision Blizzard Inc. (NASDAQ:ATVI)

This company has been moved to the archive! The financial data has not been updated since July 31, 2023.

Enterprise Value to FCFF (EV/FCFF)

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Free Cash Flow to The Firm (FCFF)

Activision Blizzard Inc., FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income 1,513 2,699 2,197 1,503 1,813
Net noncash charges 663 994 663 435 1,280
Changes in operating assets and liabilities, net of effect of business acquisitions 44 (1,279) (608) (107) (1,303)
Net cash provided by operating activities 2,220 2,414 2,252 1,831 1,790
Cash paid for interest, net of tax1 91 93 69 79 123
Capital expenditures (91) (80) (78) (116) (131)
Free cash flow to the firm (FCFF) 2,220 2,427 2,243 1,794 1,782

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Activision Blizzard Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Activision Blizzard Inc. FCFF increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Interest Paid, Net of Tax

Activision Blizzard Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Effective Income Tax Rate (EITR)
EITR1 13.00% 15.00% 16.00% 8.00% 18.00%
Interest Paid, Net of Tax
Cash paid for interest, before tax 105 109 82 86 150
Less: Cash paid for interest, tax2 14 16 13 7 27
Cash paid for interest, net of tax 91 93 69 79 123

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 See details »

2 2022 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 105 × 13.00% = 14


Enterprise Value to FCFF Ratio, Current

Activision Blizzard Inc., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 64,602
Free cash flow to the firm (FCFF) 2,220
Valuation Ratio
EV/FCFF 29.10
Benchmarks
EV/FCFF, Competitors1
Alphabet Inc. 25.64
Charter Communications Inc. 19.99
Comcast Corp. 16.72
Meta Platforms Inc. 27.51
Netflix Inc. 36.29
Walt Disney Co. 38.92
EV/FCFF, Sector
Media & Entertainment 36.40
EV/FCFF, Industry
Communication Services 32.93

Based on: 10-K (reporting date: 2022-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Activision Blizzard Inc., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 52,063 56,646 69,660 41,750 30,634
Free cash flow to the firm (FCFF)2 2,220 2,427 2,243 1,794 1,782
Valuation Ratio
EV/FCFF3 23.45 23.34 31.06 23.27 17.19
Benchmarks
EV/FCFF, Competitors4
Alphabet Inc. 20.67 27.17 29.53 28.19
Charter Communications Inc. 17.68 16.46 20.62 24.57
Comcast Corp. 17.93 15.77 20.50 18.00
Meta Platforms Inc. 24.09 15.40 29.48 25.83
Netflix Inc. 77.11 335.37 95.41
Walt Disney Co. 90.23 78.66 63.77 143.18 18.02
EV/FCFF, Sector
Media & Entertainment 23.09 24.10 30.50 31.28
EV/FCFF, Industry
Communication Services 22.97 30.26 25.42 24.63

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 See details »

2 See details »

3 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 52,063 ÷ 2,220 = 23.45

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Activision Blizzard Inc. EV/FCFF ratio decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.