We’ve recently updated our valuation analysis.

Activision Blizzard Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ATVI 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/Revenue7.1x
Enterprise Value/EBITDA24x
PEG Ratio2.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ATVI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.2x
NTES NetEase
13.8x8.1%US$42.4b
EA Electronic Arts
38.6x17.4%US$34.8b
PLTK Playtika Holding
10.5x14.2%US$3.1b
SCPL SciPlay
21x17.0%US$2.0b
ATVI Activision Blizzard
35.5x14.3%US$59.4b

Price-To-Earnings vs Peers: ATVI is expensive based on its Price-To-Earnings Ratio (35.5x) compared to the peer average (21x).


Price to Earnings Ratio vs Industry

How does ATVI's PE Ratio compare vs other companies in the US Entertainment Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a28.6%
n/an/an/a

Price-To-Earnings vs Industry: ATVI is expensive based on its Price-To-Earnings Ratio (35.5x) compared to the US Entertainment industry average (28.1x)


Price to Earnings Ratio vs Fair Ratio

What is ATVI'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.

ATVI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.5x
Fair PE Ratio22x

Price-To-Earnings vs Fair Ratio: ATVI is expensive based on its Price-To-Earnings Ratio (35.5x) compared to the estimated Fair Price-To-Earnings Ratio (22x).


Share Price vs Fair Value

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

Below Fair Value: ATVI ($75.93) is trading below our estimate of fair value ($83.29)

Significantly Below Fair Value: ATVI is trading below fair value, but not by a significant amount.


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 ATVI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$75.93
US$92.04
+21.2%
6.1%US$100.00US$78.00n/a23
Dec ’23US$75.19
US$92.04
+22.4%
6.1%US$100.00US$78.00n/a23
Nov ’23US$73.31
US$92.55
+26.2%
5.6%US$100.00US$79.00n/a22
Oct ’23US$74.34
US$93.27
+25.5%
4.6%US$100.00US$82.00n/a22
Sep ’23US$78.55
US$93.52
+19.1%
4.2%US$100.00US$82.00n/a23
Aug ’23US$80.08
US$94.00
+17.4%
3.5%US$100.00US$82.00n/a23
Jul ’23US$78.57
US$94.00
+19.6%
3.5%US$100.00US$82.00n/a23
Jun ’23US$77.41
US$94.00
+21.4%
3.5%US$100.00US$82.00n/a23
May ’23US$75.60
US$93.21
+23.3%
5.4%US$100.00US$75.00n/a24
Apr ’23US$80.82
US$93.38
+15.5%
5.3%US$100.00US$75.00n/a24
Mar ’23US$80.88
US$93.38
+15.4%
5.3%US$100.00US$75.00n/a24
Feb ’23US$79.06
US$94.19
+19.1%
7.7%US$113.00US$75.00n/a27
Jan ’23US$66.53
US$92.90
+39.6%
16.9%US$125.00US$54.00n/a30
Dec ’22US$57.28
US$94.07
+64.2%
16.3%US$125.00US$54.00US$75.1930
Nov ’22US$79.35
US$111.22
+40.2%
8.5%US$125.00US$82.00US$73.3130
Oct ’22US$78.53
US$113.38
+44.4%
6.8%US$125.00US$97.00US$74.3430
Sep ’22US$82.30
US$113.63
+38.1%
6.7%US$125.00US$97.00US$78.5531
Aug ’22US$83.62
US$116.23
+39.0%
5.7%US$126.00US$97.00US$80.0830
Jul ’22US$93.90
US$114.74
+22.2%
7.7%US$126.00US$85.00US$78.5732
Jun ’22US$96.45
US$114.72
+18.9%
7.6%US$126.00US$85.00US$77.4133
May ’22US$91.19
US$112.97
+23.9%
8.0%US$125.00US$82.00US$75.6032
Apr ’22US$95.54
US$112.90
+18.2%
8.1%US$125.00US$82.00US$80.8232
Mar ’22US$98.72
US$112.66
+14.1%
8.6%US$125.00US$82.00US$80.8832
Feb ’22US$91.42
US$100.88
+10.3%
9.8%US$117.00US$73.00US$79.0633
Jan ’22US$92.85
US$97.34
+4.8%
10.8%US$116.00US$73.00US$66.5332
Dec ’21US$79.93
US$96.41
+20.6%
10.1%US$110.00US$73.00US$57.2832

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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