Activision Blizzard Stock Analysis, Valuation (NASDAQ:ATVI)

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$69.31 $1.98 (2.78%) ATVI stock closing price Aug 15, 2018 (Closing)

Watch the robo advisor video of Activision Blizzard stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for ATVI stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Activision Blizzard, Inc. Stock Rating 3/5

Amigobulls ATVI stock analysis takes into account various financial ratios like relative valuation, Activision Blizzard revenue, growth and return on equity based on latest quarter 2018 Q2 financial statements. We also check Activision Blizzard dividend performance. We compare Activision Blizzard valuation with its sector peers to gauge relative attractiveness of ATVI stock. Activision Blizzard stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy ATVI stock?

  • Activision Blizzard's average operating margin of 20.72 was exceptional.
  • LTM Net margins were good at 7% for Activision Blizzard.
  • With a debt/equity ratio of 0.42, Activision Blizzard is comparatively less leveraged than its peers in the Consumer Discretionary sector.

Should you sell ATVI stock?

  • 2018-06 revenue growth of 0.6% YoY was meagre.
  • Cash flow from operations is 0.0224 times net income which is a negative signal.
  • Trading at a PE ratio of 30.5, ATVI stock is overvalued in comparison to sector average multiple of 21.4.
  • The company is trading at a price to sales multiple of 7.5, which is overvalued in comparison to the Consumer Discretionary sector average multiple of 1.6.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -1.3.

Comments on this video and Activision Blizzard stock

Amigobulls Activision Blizzard stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of ATVI stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

While doing a study of the company financials, Activision Blizzard revenue growth and profit or net income are two main metrics which help in identifying whether ATVI stock is overvalued or undervalued. Investors could make use of ATVI technical analysis to check whether the fundamental story is reflected in the market sentiment.