Stock Analysis on Net

Activision Blizzard Inc. (NASDAQ:ATVI)

$22.49

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

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

Activision Blizzard Inc., FCFE calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income
Net noncash charges
Changes in operating assets and liabilities, net of effect of business acquisitions
Net cash provided by operating activities
Capital expenditures
Proceeds from debt issuances, net of discounts
Repayment of long-term debt
Payment of financing costs
Premium payment for early redemption of note
Free cash flow to equity (FCFE)

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).


The financial data over the five-year period demonstrates notable trends in the company's cash flow metrics.

Net Cash Provided by Operating Activities
This metric increased steadily from 2018 through 2021, rising from $1,790 million in 2018 to a peak of $2,414 million in 2021. However, in 2022, there was a slight decline to $2,220 million, indicating a minor reduction in operating cash flow after several years of growth.
Free Cash Flow to Equity (FCFE)
The FCFE exhibited significant volatility over the period. In 2018, it was negative at -$106 million, then surged sharply to $1,715 million in 2019. This upward momentum continued in 2020, with FCFE reaching $3,070 million, marking the highest value in the series. Subsequently, FCFE decreased to $2,334 million in 2021 and further declined to $2,129 million in 2022. While still positive and substantial, the reduction since 2020 suggests a moderation in free cash flow available to equity holders.

Overall, both operating cash flow and free cash flow to equity displayed strong growth through 2020, followed by a leveling off and moderate decreases in 2021 and 2022. The trends indicate strong cash generation capabilities, though recent years show signs of stabilization or slight contraction after peak performance.


Price to FCFE Ratio, Current

Activision Blizzard Inc., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel
No. shares of common stock outstanding
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)
FCFE per share
Current share price (P)
Valuation Ratio
P/FCFE
Benchmarks
P/FCFE, Competitors1
Alphabet Inc.
Comcast Corp.
Meta Platforms Inc.
Netflix Inc.
Take-Two Interactive Software Inc.
Walt Disney Co.
P/FCFE, Sector
Media & Entertainment
P/FCFE, Industry
Communication Services

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

1 Click competitor name to see calculations.

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


Price to FCFE Ratio, Historical

Activision Blizzard Inc., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
No. shares of common stock outstanding1
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2
FCFE per share3
Share price1, 4
Valuation Ratio
P/FCFE5
Benchmarks
P/FCFE, Competitors6
Alphabet Inc.
Comcast Corp.
Meta Platforms Inc.
Netflix Inc.
Take-Two Interactive Software Inc.
Walt Disney Co.
P/FCFE, Sector
Media & Entertainment
P/FCFE, Industry
Communication Services

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 Data adjusted for splits and stock dividends.

2 See details »

3 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =

4 Closing price as at the filing date of Activision Blizzard Inc. Annual Report.

5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =

6 Click competitor name to see calculations.


Share Price Trends
The share price demonstrated a strong upward movement from 2018 to 2020, increasing from $42.14 to a peak of $96.42. However, after reaching this high, the price experienced a decline over the subsequent two years, falling to $81.44 in 2021 and further to $77.07 in 2022. This indicates a period of significant growth followed by a moderate correction.
Free Cash Flow to Equity (FCFE) per Share
The FCFE per share showed a notable improvement starting from a negative value of -$0.14 in 2018, moving sharply to positive territory with $2.23 in 2019. This upward trajectory continued into 2020 reaching $3.96, but was followed by a decrease to $3.00 in 2021 and a further reduction to $2.71 in 2022. Despite the recent declines, FCFE per share remained substantially higher than in 2018, indicating improved cash flow generation capabilities over the period.
Price to FCFE Ratio (P/FCFE)
The price to FCFE ratio first appears in 2019 with a value of 26.16 and shows a slight decrease to 24.33 in 2020, suggesting that the share price increase was supported by even stronger free cash flow growth. However, it rose again in 2021 to 27.19 and further to 28.39 in 2022, reflecting that the share price became relatively more expensive compared to FCFE in these years, despite the declining FCFE per share in the same period.