Activision Blizzard Valuation

Q: What is the Fair Price of AIY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

AIY (€89.65) is trading above our estimate of [[fair value]] (€83.98)

Is AIY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AIY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AIY (€89.65) is trading above our estimate of fair value (€83.98)

Significantly Below Fair Value: AIY is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AIY?

Key metric: As AIY is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for AIY. This is calculated by dividing AIY's market cap by their current earnings.
What is AIY's PE Ratio?
PE Ratio	34.3x
Earnings	US$2.17b
Market Cap	US$74.29b

AIY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	7.4x
Enterprise Value/EBITDA	27.9x
PEG Ratio	6x

Price to Earnings Ratio vs Peers

How does AIY's PE Ratio compare to its peers?

The above table shows the PE ratio for AIY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	29.3x
7974 Nintendo	29x	12.0%	JP¥9.5t
9999 NetEase	14.9x	8.9%	HK$439.5b
EA Electronic Arts	41.8x	13.0%	US$43.7b
EVD CTS Eventim KGaA	31.6x	14.1%	€7.9b
AIY Activision Blizzard	34.3x	5.7%	€74.3b

Price-To-Earnings vs Peers: AIY is expensive based on its Price-To-Earnings Ratio (34.3x) compared to the peer average (20.8x).

Price to Earnings Ratio vs Industry

How does AIY's PE Ratio compare vs other companies in the European Entertainment Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: AIY is expensive based on its Price-To-Earnings Ratio (34.3x) compared to the European Entertainment industry average (22.2x).

Price to Earnings Ratio vs Fair Ratio

What is AIY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AIY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	34.3x
Fair PE Ratio	25x

Price-To-Earnings vs Fair Ratio: AIY is expensive based on its Price-To-Earnings Ratio (34.3x) compared to the estimated Fair Price-To-Earnings Ratio (25x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst AIY forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	n/a	€90.52 0%	0.4%	€91.30	€90.35	n/a	11
Nov ’25	n/a	€90.52 0%	0.4%	€91.30	€90.35	n/a	11
Oct ’25	n/a	€90.52 0%	0.4%	€91.30	€90.35	n/a	11
Sep ’25	n/a	€90.52 0%	0.4%	€91.30	€90.35	n/a	11
Aug ’25	n/a	€90.52 0%	0.4%	€91.30	€90.35	n/a	11
Jul ’25	n/a	€90.52 0%	0.4%	€91.30	€90.35	n/a	11
Jun ’25	n/a	€90.52 0%	0.4%	€91.30	€90.35	n/a	11
May ’25	n/a	€90.52 0%	0.4%	€91.30	€90.35	n/a	11
Apr ’25	n/a	€90.52 0%	0.4%	€91.30	€90.35	n/a	11
Mar ’25	n/a	€90.52 0%	0.4%	€91.30	€90.35	n/a	11
Feb ’25	n/a	€90.52 0%	0.4%	€91.30	€90.35	n/a	11
Jan ’25	n/a	€90.52 0%	0.4%	€91.30	€90.35	n/a	11
Dec ’24	n/a	€90.52 0%	0.4%	€91.30	€90.35	n/a	11
Nov ’24	n/a	€90.52 0%	0.4%	€91.30	€90.35	n/a	11
Oct ’24	€88.70	€88.74 +0.04%	1.4%	€89.85	€84.23	n/a	16
Sep ’24	€85.30	€87.43 +2.5%	1.3%	€88.51	€82.98	n/a	17
Aug ’24	€83.85	€86.07 +2.7%	1.3%	€87.08	€81.64	n/a	18
Jul ’24	€76.20	€83.73 +9.9%	5.3%	€92.01	€75.45	n/a	20
Apr ’24	€78.06	€85.19 +9.1%	4.7%	€88.02	€75.05	n/a	21
Mar ’24	€71.70	€85.73 +19.6%	5.5%	€89.21	€75.13	n/a	21
Feb ’24	€69.55	€83.39 +19.9%	5.9%	€86.48	€71.00	n/a	23
Jan ’24	€71.75	€86.62 +20.7%	6.1%	€94.11	€73.41	n/a	23
Dec ’23	€70.71	€89.08 +26.0%	6.1%	€96.78	€75.49	n/a	23
Nov ’23	€74.52	€93.90 +26.0%	5.6%	€101.46	€80.15	n/a	22

Analyst Forecast: Target price is less than 20% higher than the current share price.

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