Activision Blizzard, Inc.

NasdaqGS:ATVI Stock Report

Market Cap: US$74.3b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Activision Blizzard Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 ATVI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ATVI ($94.42) is trading above our estimate of fair value ($81.9)

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

Key Valuation Metric

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

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

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

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.1x
NTES NetEase
14.9x8.9%US$439.5b
EA Electronic Arts
41.8x13.0%US$44.1b
PLTK Playtika Holding
14.7x10.0%US$3.2b
SCPL SciPlay
20.9x8.7%US$2.9b
ATVI Activision Blizzard
34.3x5.7%US$74.3b

Price-To-Earnings vs Peers: ATVI is good value based on its Price-To-Earnings Ratio (34.3x) compared to the peer average (41.2x).

Price to Earnings Ratio vs Industry

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

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IH iHuman
4.4xn/aUS$81.07m
RDBX Redbox Entertainment
1.2x-121.8%US$76.65m
GMM Global Mofy AI
0.6xn/aUS$10.72m
MSGM Motorsport Games
0.7xn/aUS$3.60m
ATVI 34.3xIndustry Avg. 22.8xNo. of Companies6PE020406080100+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ATVI is expensive based on its Price-To-Earnings Ratio (34.3x) compared to the US Entertainment industry average (14.4x).

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 Ratio34.3x
Fair PE Ratio22x

Price-To-Earnings vs Fair Ratio: ATVI is expensive based on its Price-To-Earnings Ratio (34.3x) compared to the estimated Fair Price-To-Earnings Ratio (22x).

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
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$93.63
US$94.81
+1.3%
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$91.89
US$94.89
+3.3%
1.3%US$96.00US$90.00n/a18
Jul ’24US$84.30
US$91.00
+7.9%
5.3%US$100.00US$82.00n/a20
Apr ’24US$85.59
US$91.95
+7.4%
4.7%US$95.00US$81.00n/a21
Mar ’24US$75.72
US$91.29
+20.6%
5.5%US$95.00US$80.00n/a21
Feb ’24US$76.70
US$91.61
+19.4%
5.9%US$95.00US$78.00n/a23
Jan ’24US$76.55
US$92.04
+20.2%
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

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

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