Intrinsic value of Activision Blizzard - ATVI

Previous Close

$79.65

  Intrinsic Value

$32.54

stock screener

  Rating & Target

str. sell

-59%

Previous close

$79.65

 
Intrinsic value

$32.54

 
Up/down potential

-59%

 
Rating

str. sell

We calculate the intrinsic value of ATVI stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 60.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  6.20
  6.08
  5.97
  5.87
  5.79
  5.71
  5.64
  5.57
  5.52
  5.46
  5.42
  5.38
  5.34
  5.31
  5.27
  5.25
  5.22
  5.20
  5.18
  5.16
  5.15
  5.13
  5.12
  5.11
  5.10
  5.09
  5.08
  5.07
  5.06
  5.06
Revenue, $m
  7,452
  7,905
  8,377
  8,869
  9,383
  9,918
  10,477
  11,061
  11,672
  12,310
  12,977
  13,674
  14,404
  15,168
  15,968
  16,806
  17,684
  18,604
  19,567
  20,577
  21,636
  22,747
  23,911
  25,132
  26,412
  27,756
  29,165
  30,644
  32,195
  33,823
Variable operating expenses, $m
  5,787
  6,070
  6,365
  6,672
  6,993
  7,328
  7,677
  8,042
  8,423
  8,821
  8,106
  8,542
  8,998
  9,475
  9,975
  10,498
  11,046
  11,621
  12,223
  12,854
  13,515
  14,209
  14,936
  15,698
  16,498
  17,338
  18,218
  19,141
  20,111
  21,127
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  5,787
  6,070
  6,365
  6,672
  6,993
  7,328
  7,677
  8,042
  8,423
  8,821
  8,106
  8,542
  8,998
  9,475
  9,975
  10,498
  11,046
  11,621
  12,223
  12,854
  13,515
  14,209
  14,936
  15,698
  16,498
  17,338
  18,218
  19,141
  20,111
  21,127
Operating income, $m
  1,665
  1,835
  2,012
  2,197
  2,390
  2,591
  2,801
  3,020
  3,249
  3,488
  4,871
  5,133
  5,407
  5,693
  5,994
  6,308
  6,638
  6,983
  7,345
  7,724
  8,121
  8,538
  8,975
  9,433
  9,914
  10,418
  10,947
  11,502
  12,084
  12,695
EBITDA, $m
  4,070
  4,317
  4,575
  4,844
  5,124
  5,417
  5,722
  6,041
  6,375
  6,723
  7,087
  7,468
  7,867
  8,284
  8,721
  9,179
  9,658
  10,160
  10,687
  11,238
  11,817
  12,423
  13,059
  13,726
  14,425
  15,159
  15,928
  16,736
  17,583
  18,472
Interest expense (income), $m
  209
  237
  269
  301
  334
  369
  406
  444
  483
  525
  568
  613
  661
  710
  762
  816
  873
  933
  995
  1,060
  1,128
  1,200
  1,275
  1,354
  1,437
  1,523
  1,614
  1,709
  1,809
  1,914
  2,024
Earnings before tax, $m
  1,428
  1,566
  1,711
  1,863
  2,020
  2,185
  2,357
  2,536
  2,724
  2,920
  4,257
  4,472
  4,696
  4,931
  5,177
  5,435
  5,705
  5,988
  6,285
  6,595
  6,921
  7,263
  7,621
  7,997
  8,391
  8,804
  9,238
  9,693
  10,170
  10,671
Tax expense, $m
  386
  423
  462
  503
  545
  590
  636
  685
  735
  788
  1,149
  1,207
  1,268
  1,331
  1,398
  1,468
  1,540
  1,617
  1,697
  1,781
  1,869
  1,961
  2,058
  2,159
  2,265
  2,377
  2,494
  2,617
  2,746
  2,881
Net income, $m
  1,042
  1,143
  1,249
  1,360
  1,475
  1,595
  1,720
  1,852
  1,988
  2,132
  3,108
  3,264
  3,428
  3,600
  3,780
  3,968
  4,165
  4,371
  4,588
  4,815
  5,052
  5,302
  5,563
  5,837
  6,125
  6,427
  6,743
  7,076
  7,424
  7,790

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  18,724
  19,862
  21,048
  22,285
  23,575
  24,920
  26,325
  27,793
  29,326
  30,928
  32,604
  34,357
  36,192
  38,112
  40,122
  42,227
  44,432
  46,743
  49,164
  51,702
  54,363
  57,152
  60,077
  63,145
  66,363
  69,738
  73,279
  76,994
  80,892
  84,982
Adjusted assets (=assets-cash), $m
  18,724
  19,862
  21,048
  22,285
  23,575
  24,920
  26,325
  27,793
  29,326
  30,928
  32,604
  34,357
  36,192
  38,112
  40,122
  42,227
  44,432
  46,743
  49,164
  51,702
  54,363
  57,152
  60,077
  63,145
  66,363
  69,738
  73,279
  76,994
  80,892
  84,982
Revenue / Adjusted assets
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
Average production assets, $m
  12,728
  13,502
  14,308
  15,149
  16,026
  16,940
  17,896
  18,893
  19,935
  21,025
  22,164
  23,356
  24,602
  25,908
  27,274
  28,705
  30,204
  31,775
  33,421
  35,146
  36,955
  38,851
  40,840
  42,925
  45,112
  47,407
  49,814
  52,339
  54,989
  57,770
Working capital, $m
  -291
  -308
  -327
  -346
  -366
  -387
  -409
  -431
  -455
  -480
  -506
  -533
  -562
  -592
  -623
  -655
  -690
  -726
  -763
  -803
  -844
  -887
  -933
  -980
  -1,030
  -1,082
  -1,137
  -1,195
  -1,256
  -1,319
Total debt, $m
  4,977
  5,572
  6,192
  6,839
  7,514
  8,217
  8,952
  9,720
  10,521
  11,360
  12,236
  13,153
  14,112
  15,116
  16,168
  17,269
  18,422
  19,630
  20,897
  22,224
  23,616
  25,075
  26,604
  28,209
  29,892
  31,657
  33,509
  35,452
  37,491
  39,630
Total liabilities, $m
  9,793
  10,388
  11,008
  11,655
  12,330
  13,033
  13,768
  14,536
  15,337
  16,176
  17,052
  17,969
  18,928
  19,932
  20,984
  22,085
  23,238
  24,446
  25,713
  27,040
  28,432
  29,891
  31,420
  33,025
  34,708
  36,473
  38,325
  40,268
  42,307
  44,446
Total equity, $m
  8,931
  9,474
  10,040
  10,630
  11,245
  11,887
  12,557
  13,257
  13,988
  14,753
  15,552
  16,388
  17,263
  18,179
  19,138
  20,142
  21,194
  22,296
  23,451
  24,662
  25,931
  27,262
  28,657
  30,120
  31,655
  33,265
  34,954
  36,726
  38,586
  40,537
Total liabilities and equity, $m
  18,724
  19,862
  21,048
  22,285
  23,575
  24,920
  26,325
  27,793
  29,325
  30,929
  32,604
  34,357
  36,191
  38,111
  40,122
  42,227
  44,432
  46,742
  49,164
  51,702
  54,363
  57,153
  60,077
  63,145
  66,363
  69,738
  73,279
  76,994
  80,893
  84,983
Debt-to-equity ratio
  0.560
  0.590
  0.620
  0.640
  0.670
  0.690
  0.710
  0.730
  0.750
  0.770
  0.790
  0.800
  0.820
  0.830
  0.840
  0.860
  0.870
  0.880
  0.890
  0.900
  0.910
  0.920
  0.930
  0.940
  0.940
  0.950
  0.960
  0.970
  0.970
  0.980
Adjusted equity ratio
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,042
  1,143
  1,249
  1,360
  1,475
  1,595
  1,720
  1,852
  1,988
  2,132
  3,108
  3,264
  3,428
  3,600
  3,780
  3,968
  4,165
  4,371
  4,588
  4,815
  5,052
  5,302
  5,563
  5,837
  6,125
  6,427
  6,743
  7,076
  7,424
  7,790
Depreciation, amort., depletion, $m
  2,405
  2,482
  2,563
  2,647
  2,735
  2,826
  2,922
  3,021
  3,126
  3,235
  2,216
  2,336
  2,460
  2,591
  2,727
  2,871
  3,020
  3,177
  3,342
  3,515
  3,695
  3,885
  4,084
  4,292
  4,511
  4,741
  4,981
  5,234
  5,499
  5,777
Funds from operations, $m
  3,447
  3,626
  3,812
  4,007
  4,210
  4,421
  4,642
  4,873
  5,114
  5,366
  5,324
  5,600
  5,889
  6,191
  6,507
  6,838
  7,185
  7,549
  7,930
  8,329
  8,748
  9,187
  9,647
  10,130
  10,636
  11,168
  11,725
  12,310
  12,923
  13,567
Change in working capital, $m
  -17
  -18
  -18
  -19
  -20
  -21
  -22
  -23
  -24
  -25
  -26
  -27
  -28
  -30
  -31
  -33
  -34
  -36
  -38
  -39
  -41
  -43
  -45
  -48
  -50
  -52
  -55
  -58
  -61
  -63
Cash from operations, $m
  3,464
  3,643
  3,831
  4,026
  4,230
  4,442
  4,664
  4,896
  5,138
  5,391
  5,350
  5,627
  5,917
  6,221
  6,538
  6,871
  7,219
  7,585
  7,967
  8,369
  8,789
  9,230
  9,693
  10,178
  10,686
  11,220
  11,780
  12,367
  12,984
  13,630
Maintenance CAPEX, $m
  -1,198
  -1,273
  -1,350
  -1,431
  -1,515
  -1,603
  -1,694
  -1,790
  -1,889
  -1,994
  -2,102
  -2,216
  -2,336
  -2,460
  -2,591
  -2,727
  -2,871
  -3,020
  -3,177
  -3,342
  -3,515
  -3,695
  -3,885
  -4,084
  -4,292
  -4,511
  -4,741
  -4,981
  -5,234
  -5,499
New CAPEX, $m
  -745
  -774
  -806
  -841
  -877
  -915
  -955
  -997
  -1,042
  -1,089
  -1,139
  -1,192
  -1,247
  -1,305
  -1,367
  -1,431
  -1,499
  -1,571
  -1,646
  -1,725
  -1,809
  -1,896
  -1,988
  -2,085
  -2,187
  -2,294
  -2,407
  -2,525
  -2,650
  -2,781
Cash from investing activities, $m
  -1,943
  -2,047
  -2,156
  -2,272
  -2,392
  -2,518
  -2,649
  -2,787
  -2,931
  -3,083
  -3,241
  -3,408
  -3,583
  -3,765
  -3,958
  -4,158
  -4,370
  -4,591
  -4,823
  -5,067
  -5,324
  -5,591
  -5,873
  -6,169
  -6,479
  -6,805
  -7,148
  -7,506
  -7,884
  -8,280
Free cash flow, $m
  1,521
  1,597
  1,674
  1,755
  1,838
  1,925
  2,015
  2,109
  2,206
  2,308
  2,109
  2,219
  2,335
  2,455
  2,581
  2,712
  2,850
  2,994
  3,144
  3,301
  3,466
  3,638
  3,819
  4,008
  4,206
  4,414
  4,632
  4,860
  5,100
  5,351
Issuance/(repayment) of debt, $m
  587
  595
  620
  647
  675
  704
  735
  767
  802
  838
  876
  917
  959
  1,004
  1,051
  1,101
  1,153
  1,208
  1,266
  1,327
  1,391
  1,459
  1,530
  1,604
  1,683
  1,765
  1,852
  1,943
  2,039
  2,139
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  587
  595
  620
  647
  675
  704
  735
  767
  802
  838
  876
  917
  959
  1,004
  1,051
  1,101
  1,153
  1,208
  1,266
  1,327
  1,391
  1,459
  1,530
  1,604
  1,683
  1,765
  1,852
  1,943
  2,039
  2,139
Total cash flow (excl. dividends), $m
  2,107
  2,192
  2,295
  2,401
  2,512
  2,629
  2,750
  2,876
  3,008
  3,146
  2,985
  3,136
  3,294
  3,459
  3,632
  3,813
  4,003
  4,202
  4,410
  4,629
  4,857
  5,097
  5,349
  5,613
  5,889
  6,180
  6,484
  6,803
  7,138
  7,490
Retained Cash Flow (-), $m
  -519
  -543
  -566
  -590
  -615
  -642
  -670
  -700
  -731
  -764
  -799
  -836
  -875
  -916
  -959
  -1,004
  -1,052
  -1,102
  -1,155
  -1,211
  -1,269
  -1,331
  -1,395
  -1,463
  -1,535
  -1,610
  -1,689
  -1,772
  -1,859
  -1,951
Prev. year cash balance distribution, $m
  1,050
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  175
  186
  198
  209
  222
  235
  248
  262
  277
  292
  308
  324
  342
  360
  379
  399
  420
  442
  465
  489
  514
  541
  569
  598
  628
  660
  694
  729
  766
  805
Cash available for distribution, $m
  2,638
  1,649
  1,729
  1,811
  1,897
  1,987
  2,080
  2,176
  2,277
  2,382
  2,186
  2,300
  2,419
  2,543
  2,673
  2,809
  2,951
  3,100
  3,255
  3,418
  3,588
  3,767
  3,954
  4,149
  4,355
  4,570
  4,795
  5,031
  5,279
  5,539
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  2,529
  1,510
  1,504
  1,492
  1,471
  1,442
  1,405
  1,360
  1,308
  1,249
  1,038
  981
  920
  854
  785
  714
  642
  571
  501
  434
  371
  313
  259
  211
  169
  133
  103
  78
  58
  42
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Activision Blizzard, Inc. is a developer and publisher of interactive entertainment content and services. The Company develops and distributes content and services across various gaming platforms, including video game consoles, personal computers (PC) and mobile devices. Its segments include Activision Publishing, Inc. (Activision), Blizzard Entertainment, Inc. (Blizzard), King Digital Entertainment (King) and Other. Activision is a developer and publisher of interactive software products and content. Blizzard is engaged in developing and publishing of interactive software products and entertainment content, particularly in PC gaming. King is a mobile entertainment company. It is engaged in other businesses, including The Major League Gaming (MLG) business; The Activision Blizzard Studios (Studios) business, and The Activision Blizzard Distribution (Distribution) business. It also develops products spanning other genres, including action/adventure, role-playing and simulation.

FINANCIAL RATIOS  of  Activision Blizzard (ATVI)

Valuation Ratios
P/E Ratio 61.5
Price to Sales 9
Price to Book 6.5
Price to Tangible Book
Price to Cash Flow 27.6
Price to Free Cash Flow 29.4
Growth Rates
Sales Growth Rate 41.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 22.5%
Cap. Spend. - 3 Yr. Gr. Rate 12.9%
Financial Strength
Quick Ratio NaN
Current Ratio 0.3
LT Debt to Equity 53.6%
Total Debt to Equity 53.6%
Interest Coverage 6
Management Effectiveness
Return On Assets 7%
Ret/ On Assets - 3 Yr. Avg. 7%
Return On Total Capital 7.4%
Ret/ On T. Cap. - 3 Yr. Avg. 7.4%
Return On Equity 11.2%
Return On Equity - 3 Yr. Avg. 11.7%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 63.8%
Gross Margin - 3 Yr. Avg. 65.1%
EBITDA Margin 37.3%
EBITDA Margin - 3 Yr. Avg. 36.9%
Operating Margin 20%
Oper. Margin - 3 Yr. Avg. 25%
Pre-Tax Margin 16.7%
Pre-Tax Margin - 3 Yr. Avg. 21%
Net Profit Margin 14.6%
Net Profit Margin - 3 Yr. Avg. 17.6%
Effective Tax Rate 12.7%
Eff/ Tax Rate - 3 Yr. Avg. 16%
Payout Ratio 20.2%

ATVI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ATVI stock intrinsic value calculation we used $7017 million for the last fiscal year's total revenue generated by Activision Blizzard. The default revenue input number comes from 2017 income statement of Activision Blizzard. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our ATVI stock valuation model: a) initial revenue growth rate of 6.2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for ATVI is calculated based on our internal credit rating of Activision Blizzard, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Activision Blizzard.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of ATVI stock the variable cost ratio is equal to 78.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for ATVI stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Activision Blizzard.

Corporate tax rate of 27% is the nominal tax rate for Activision Blizzard. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the ATVI stock is equal to 2.5%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for ATVI are equal to 170.8%.

Life of production assets of 10 years is the average useful life of capital assets used in Activision Blizzard operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for ATVI is equal to -3.9%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $9462 million for Activision Blizzard - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 754 million for Activision Blizzard is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Activision Blizzard at the current share price and the inputted number of shares is $60.1 billion.

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