This firm currently holds 3.61
B in liabilities with Debt to Equity (D/E) ratio of 0.19, which may suggest the entity is not taking enough advantage from borrowing.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Activision Blizzard has an asset utilization ratio of 1321.63 percent. This implies that the company is making $13.22 for each dollar of assets. An increasing asset utilization means that Activision Blizzard is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of Activision Blizzard using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Activision Blizzard based exclusively on its
fundamental and basic
technical indicators. By analyzing Activision Blizzard's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Activision Blizzard's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Activision Blizzard. We calculate exposure to Activision Blizzard's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Activision Blizzard's related companies.
Activision Blizzard Investment Alerts
Activision investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Activision Blizzard performance across your portfolios.Please check all
investment alerts for Activision
Activision Blizzard Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Activision value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Activision Blizzard competition to find
correlations between indicators driving the intrinsic value of Activision.
Another angle On Activision Blizzard
The company reported the previous year's revenue of 7.36
B. Net Income was 1.67
B with profit before overhead, payroll, taxes, and interest of 6.49
B.
Margins Breakdown
Activision profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Activision Blizzard itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Activision Blizzard profit margins.
| Operating Margin | 30.55 |
| EBITDA Margin | 35.87 |
| Gross Margin | 66.39 |
| Profit Margin | 24.55 |
Activision Blizzard Net Income Per Employee is increasing over the last 8 years. Moreover, Activision Blizzard Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years.
Activision is expecting lower volatility in December
Current market risk adjusted performance indicator falls down to -0.43. Possible price rise? Activision Blizzard exhibits very low volatility with skewness of 0.49 and kurtosis of 1.84. However, we advise investors to further study Activision Blizzard technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Activision Blizzard's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Activision Blizzard's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Conclusion on Activision Blizzard
While some firms in the electronic gaming & multimedia industry are either recovering or due for a correction, Activision Blizzard may not be performing as strong as the other in terms of long-term growth potentials. Taking everything into account, as of the 19th of November 2022, our analysis shows that Activision Blizzard slowly supersedes the market. The company is
undervalued and projects
very small chance of distress for the next 2 years. Our current 90 days buy-sell recommendation on the company is
Strong Hold.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Activision Blizzard. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com
