Activision Blizzard, Inc.

LSE:0H8X Stock Report

Market Cap: US$74.3b

Activision Blizzard Valuation

Is 0H8X 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 0H8X when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0H8X ($94.42) is trading above our estimate of fair value ($84.47)

Significantly Below Fair Value: 0H8X is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0H8X?

Key metric: As 0H8X is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0H8X. This is calculated by dividing 0H8X's market cap by their current earnings.
What is 0H8X's PE Ratio?
PE Ratio34.3x
EarningsUS$2.17b
Market CapUS$74.29b

Price to Earnings Ratio vs Peers

How does 0H8X's PE Ratio compare to its peers?

The above table shows the PE ratio for 0H8X vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.9x
7974 Nintendo
30.3x12.0%JP¥9.9t
WPP WPP
44.9x20.6%UK£9.2b
9999 NetEase
14.9x8.9%HK$439.5b
EA Electronic Arts
41.4x13.0%US$43.0b
0H8X Activision Blizzard
34.3x5.7%US$74.3b

Price-To-Earnings vs Peers: 0H8X is expensive based on its Price-To-Earnings Ratio (34.3x) compared to the peer average (19.6x).

Price to Earnings Ratio vs Industry

How does 0H8X's PE Ratio compare vs other companies in the European Entertainment Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0H8X 34.3xIndustry Avg. 14.1xNo. of Companies10PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0H8X is expensive based on its Price-To-Earnings Ratio (34.3x) compared to the European Entertainment industry average (22.1x).

Price to Earnings Ratio vs Fair Ratio

What is 0H8X'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.

0H8X PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34.3x
Fair PE Ratio25.1x

Price-To-Earnings vs Fair Ratio: 0H8X is expensive based on its Price-To-Earnings Ratio (34.3x) compared to the estimated Fair Price-To-Earnings Ratio (25.1x).

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 0H8X forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
US$95.18
0%
0.4%US$96.00US$95.00n/a11
Nov ’25n/a
US$95.18
0%
0.4%US$96.00US$95.00n/a11
Oct ’25n/a
US$95.18
0%
0.4%US$96.00US$95.00n/a11
Sep ’25n/a
US$95.18
0%
0.4%US$96.00US$95.00n/a11
Aug ’25n/a
US$95.18
0%
0.4%US$96.00US$95.00n/a11
Jul ’25n/a
US$95.18
0%
0.4%US$96.00US$95.00n/a11
Jun ’25n/a
US$95.18
0%
0.4%US$96.00US$95.00n/a11
May ’25n/a
US$95.18
0%
0.4%US$96.00US$95.00n/a11
Apr ’25n/a
US$95.18
0%
0.4%US$96.00US$95.00n/a11
Mar ’25n/a
US$95.18
0%
0.4%US$96.00US$95.00n/a11
Feb ’25n/a
US$95.18
0%
0.4%US$96.00US$95.00n/a11
Jan ’25n/a
US$95.18
0%
0.4%US$96.00US$95.00n/a11
Dec ’24n/a
US$95.18
0%
0.4%US$96.00US$95.00n/a11
Nov ’24n/a
US$95.18
0%
0.4%US$96.00US$95.00n/a11
Oct ’24US$93.67
US$94.81
+1.2%
1.4%US$96.00US$90.00n/a16
Sep ’24US$92.04
US$94.82
+3.0%
1.3%US$96.00US$90.00n/a17
Aug ’24US$91.94
US$94.89
+3.2%
1.3%US$96.00US$90.00n/a18
Jul ’24US$84.03
US$91.00
+8.3%
5.3%US$100.00US$82.00n/a20
Apr ’24US$85.52
US$91.95
+7.5%
4.7%US$95.00US$81.00n/a21
Mar ’24US$75.99
US$91.29
+20.1%
5.5%US$95.00US$80.00n/a21
Feb ’24US$76.02
US$91.61
+20.5%
5.9%US$95.00US$78.00n/a23
Jan ’24US$76.33
US$92.04
+20.6%
6.1%US$100.00US$78.00n/a23
Dec ’23US$75.13
US$92.04
+22.5%
6.1%US$100.00US$78.00n/a23
Nov ’23US$73.44
US$92.55
+26.0%
5.6%US$100.00US$79.00n/a22

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

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