Activision Blizzard Inc
LSE:0H8X
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (28.9), the stock would be worth $94.25 (0% downside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 28.9 | $94.25 |
0%
|
| 3-Year Average | 28.9 | $94.25 |
0%
|
| 5-Year Average | 28.9 | $94.25 |
0%
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| Industry Average | 18.8 | $61.44 |
-35%
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| Country Average | 19.6 | $64 |
-32%
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Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
|
$64.6B
|
/ |
Jul 2023
$2.2B
|
= |
|
|
$64.6B
|
/ |
Dec 2023
$3.6B
|
= |
|
|
$64.6B
|
/ |
Dec 2024
$4B
|
= |
|
|
$64.6B
|
/ |
Dec 2025
$4.2B
|
= |
|
Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| US |
A
|
Activision Blizzard Inc
LSE:0H8X
|
74.1B USD | 28.9 | 34.2 | |
| CN |
|
NetEase Inc
NASDAQ:NTES
|
70.6B USD | 9.1 | 14.3 | |
| JP |
|
Nintendo Co Ltd
TSE:7974
|
9.3T JPY | 20.8 | 23.1 | |
| US |
|
Electronic Arts Inc
NASDAQ:EA
|
50.6B USD | 49.6 | 74.5 | |
| SG |
|
Sea Ltd
NYSE:SE
|
45.5B USD | 18.5 | 28.9 | |
| US |
|
Roblox Corp
NYSE:RBLX
|
39.3B USD | -30.5 | -36.9 | |
| US |
|
Take-Two Interactive Software Inc
NASDAQ:TTWO
|
38.9B USD | -133.1 | -9.8 | |
| CN |
Z
|
Zhejiang Century Huatong Group Co Ltd
SZSE:002602
|
122.9B CNY | 19.9 | 32.6 | |
| JP |
|
Konami Holdings Corp
TSE:9766
|
2.7T JPY | 20.9 | 31.4 | |
| JP |
N
|
Nexon Co Ltd
TSE:3659
|
2.1T JPY | 10.4 | 22.8 | |
| JP |
K
|
Konami Group Corp
XMUN:KOA
|
9.4B EUR | 12.5 | 19.8 |
Market Distribution
| Min | 0 |
| 30th Percentile | 13.6 |
| Median | 19.6 |
| 70th Percentile | 27.8 |
| Max | 1 826 183.2 |
Other Multiples
Activision Blizzard Inc
Glance View
In the realm of interactive entertainment, Activision Blizzard Inc. stands as a commanding force, sculpting the landscape of digital play with its diverse portfolio of video games. Born from the merger of Activision and Vivendi Games in 2008, the company operates through three primary segments: Activision Publishing, Blizzard Entertainment, and King Digital Entertainment. Each division brings its unique flair to the gaming universe. Activision, the originator of the blockbuster Call of Duty franchise, predominantly targets console and PC gamers, pushing the limits of immersive storytelling and competitive play. Meanwhile, Blizzard is known for its meticulously crafted game worlds and franchises like World of Warcraft, Diablo, and Overwatch, which blend rich narratives with multiplayer online experiences. King, a mobile gaming powerhouse, has captivated the casual gaming market with its addictive offerings, such as the highly successful Candy Crush Saga. Monetization at Activision Blizzard extends well beyond traditional game sales, capturing multiple revenue streams that fuel its financial engine. The company harnesses in-game purchases and microtransactions, allowing players to acquire digital goods to enhance their gaming experience. Subscription services, particularly associated with Blizzard’s World of Warcraft, offer another steady income source by ensuring regular player engagement. Furthermore, Activision Blizzard has tapped into esports, turning competitive gaming into a lucrative spectacle through leagues and tournaments that attract global audiences and sponsorships. By diversifying its business model, the company not only sustains its robust growth but also weaves itself tightly into the fabric of both hardcore and casual gaming communities worldwide.
