Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Activision Blizzard Inc. (NASDAQ:ATVI)

Common Stock Valuation Ratios (Price Multiples)

Beginner level

Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).


Current Valuation Ratios

Activision Blizzard Inc., current price multiples

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Activision Blizzard Inc. Consumer Goods
Selected Financial Data
Current share price (P) $80.09
No. shares of common stock outstanding 771,872,058
Growth rate (g) 7.55%
 
Earnings per share (EPS) $1.95
Next year expected EPS $2.09
Operating profit per share $2.08
Sales per share $8.41
Book value per share (BVPS) $16.59
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 41.13 34.21
Price to next year expected earnings 38.24 32.24
Price-earnings-growth (PEG) 5.45 5.59
Price to operating profit (P/OP) 38.47 21.56
Price to sales (P/S) 9.53 3.53
Price to book value (P/BV) 4.83 8.21

Based on: 10-K (filing date: 2020-02-27).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Activision Blizzard Inc., historical price multiples

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Price to earnings (P/E) 29.85 17.75 201.77 35.13 26.10
Price to operating profit (P/OP) 27.92 16.19 42.08 24.03 17.65
Price to sales (P/S) 6.91 4.29 7.85 5.13 4.99
Price to book value (P/BV) 3.50 2.83 5.82 3.72 2.89

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-29).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Activision Blizzard Inc.’s P/E ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Activision Blizzard Inc.’s P/OP ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Activision Blizzard Inc.’s P/S ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Activision Blizzard Inc.’s P/BV ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 769,221,524 763,833,873 758,631,663 751,846,958 734,998,115
Selected Financial Data (US$)
Net income (in millions) 1,503  1,813  273  966  892 
Earnings per share (EPS)2 1.95 2.37 0.36 1.28 1.21
Share price1, 3 58.33 42.14 72.61 45.13 31.67
Valuation Ratio
P/E ratio4 29.85 17.75 201.77 35.13 26.10
Benchmarks
P/E Ratio, Industry
Consumer Goods 33.16 26.27 21.23 22.04 26.18

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-29).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 1,503,000,000 ÷ 769,221,524 = 1.95

3 Closing price as at the filing date of Activision Blizzard Inc.’s Annual Report.

4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 58.33 ÷ 1.95 = 29.85

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Activision Blizzard Inc.’s P/E ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 769,221,524 763,833,873 758,631,663 751,846,958 734,998,115
Selected Financial Data (US$)
Operating income (in millions) 1,607  1,988  1,309  1,412  1,319 
Operating profit per share2 2.09 2.60 1.73 1.88 1.79
Share price1, 3 58.33 42.14 72.61 45.13 31.67
Valuation Ratio
P/OP ratio4 27.92 16.19 42.08 24.03 17.65
Benchmarks
P/OP Ratio, Industry
Consumer Goods 20.90 19.60 16.73 17.64 17.11

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-29).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 1,607,000,000 ÷ 769,221,524 = 2.09

3 Closing price as at the filing date of Activision Blizzard Inc.’s Annual Report.

4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 58.33 ÷ 2.09 = 27.92

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Activision Blizzard Inc.’s P/OP ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 769,221,524 763,833,873 758,631,663 751,846,958 734,998,115
Selected Financial Data (US$)
Net revenues (in millions) 6,489  7,500  7,017  6,608  4,664 
Sales per share2 8.44 9.82 9.25 8.79 6.35
Share price1, 3 58.33 42.14 72.61 45.13 31.67
Valuation Ratio
P/S ratio4 6.91 4.29 7.85 5.13 4.99
Benchmarks
P/S Ratio, Industry
Consumer Goods 3.42 2.88 3.21 3.24 2.95

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-29).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Sales per share = Net revenues ÷ No. shares of common stock outstanding
= 6,489,000,000 ÷ 769,221,524 = 8.44

3 Closing price as at the filing date of Activision Blizzard Inc.’s Annual Report.

4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 58.33 ÷ 8.44 = 6.91

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Activision Blizzard Inc.’s P/S ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 769,221,524 763,833,873 758,631,663 751,846,958 734,998,115
Selected Financial Data (US$)
Shareholders’ equity (in millions) 12,805  11,357  9,462  9,119  8,068 
Book value per share (BVPS)2 16.65 14.87 12.47 12.13 10.98
Share price1, 3 58.33 42.14 72.61 45.13 31.67
Valuation Ratio
P/BV ratio4 3.50 2.83 5.82 3.72 2.89
Benchmarks
P/BV Ratio, Industry
Consumer Goods 7.96 6.28 6.35 6.64 6.09

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-29).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 12,805,000,000 ÷ 769,221,524 = 16.65

3 Closing price as at the filing date of Activision Blizzard Inc.’s Annual Report.

4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 58.33 ÷ 16.65 = 3.50

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Activision Blizzard Inc.’s P/BV ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.