Valuation of Activision Blizzard as A Stock Investment
Li-Kankaanpää, Ying (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023060421108
https://urn.fi/URN:NBN:fi:amk-2023060421108
Tiivistelmä
This research was conducted to help establish a fundamental understanding of stock investment by interpreting the case of Activision Blizzard. Secondly, this research aimed to predict the intrinsic value of stocks, which laid a foundation for exploring profitable or valuable stocks and provide some feasible suggestions and examples for people who are interested in stock investment, especially for these new learners in the stock field. All these objectives have been achieved via the analysis and comparison among the three companies.
In addition, it first introduced the overall background of the stock valuation and the information about the three companies, laying a foundation for further exploration on the stock valuation of three companies. Furthermore, it reviewed the related literature and then it identified three indicators, including revenue and revenue growth, EBITDA and EBITDA growth, and Net income, P/E ratio, and net income growth to interpret and compare the operation of three companies, following the estimation of implied equity value and enterprise value. All of these elements contributed to getting the conclusion that the stock of Activision Blizzard is recommended to be invested in the medium and long term as a result. the researcher has taken advantage of corresponding data of the revenue growth, net income, EBITDA growing rate, and P/E ratio of Activision Blizzard from 2017 to 2021 to help judge the stock developing trend, generating a more accurate recommendation for the investors. Besides, in order to have a deeper understanding of the game industry, another two peer companies, Rovio and Electronic Arts are also being used in this research to make a comparison to increase the reliability and validity of the conclusion. The symmetric data within the same period being used in the process of analysis can guarantee the effectiveness of the contrast. Besides, about the share value, the stock price of Activision Blizzard is between that of Electronic Arts and Rovio.
To conclude, the data and graphs presented in the research showed that the overall trend of Activision Blizzard’s revenue status is becoming better in recent years. Several approaches were adopted to improve the valuation of Activision Blizzard since multiple factors influence the valuation. Activision Blizzard has seen exciting growth in various aspects compared to another two companies. However, the company still needs to maintain its advantages and improve its value as a stock investment. Having basic knowledge about the methodology, the discussions and findings are based on that, which contributed to the conclusion that the stock of Activision Blizzard was worth investing in. Additionally, this project was conducted to provide feasible suggestions for the stock learns via the analysis of the three companies. Thus hoping this research can help people who are interested in stock investment learn something about stock and the operation of companies.
In addition, it first introduced the overall background of the stock valuation and the information about the three companies, laying a foundation for further exploration on the stock valuation of three companies. Furthermore, it reviewed the related literature and then it identified three indicators, including revenue and revenue growth, EBITDA and EBITDA growth, and Net income, P/E ratio, and net income growth to interpret and compare the operation of three companies, following the estimation of implied equity value and enterprise value. All of these elements contributed to getting the conclusion that the stock of Activision Blizzard is recommended to be invested in the medium and long term as a result. the researcher has taken advantage of corresponding data of the revenue growth, net income, EBITDA growing rate, and P/E ratio of Activision Blizzard from 2017 to 2021 to help judge the stock developing trend, generating a more accurate recommendation for the investors. Besides, in order to have a deeper understanding of the game industry, another two peer companies, Rovio and Electronic Arts are also being used in this research to make a comparison to increase the reliability and validity of the conclusion. The symmetric data within the same period being used in the process of analysis can guarantee the effectiveness of the contrast. Besides, about the share value, the stock price of Activision Blizzard is between that of Electronic Arts and Rovio.
To conclude, the data and graphs presented in the research showed that the overall trend of Activision Blizzard’s revenue status is becoming better in recent years. Several approaches were adopted to improve the valuation of Activision Blizzard since multiple factors influence the valuation. Activision Blizzard has seen exciting growth in various aspects compared to another two companies. However, the company still needs to maintain its advantages and improve its value as a stock investment. Having basic knowledge about the methodology, the discussions and findings are based on that, which contributed to the conclusion that the stock of Activision Blizzard was worth investing in. Additionally, this project was conducted to provide feasible suggestions for the stock learns via the analysis of the three companies. Thus hoping this research can help people who are interested in stock investment learn something about stock and the operation of companies.