Activision Blizzard Stock Price and Value Analysis

Should you buy Activision Blizzard stock? (NasdaqGS:ATVI). Let's see how it does in our automated value investing analysis system.

ATVI Free Cash Flow Trend

Free Cash Flow trendline for ATVI
Free Cash Flow trendline for Activision Blizzard

Based on historical returns, we believe that Activision Blizzard can grow its free cash at a rate of about 1%. That's positive!

AdvantagesDisadvantages
None.
  • This company is making money at a modest rate.
  • This company has wild ups and downs.
  • This company has a low dividend yield.
  • This stock looks overpriced.
  • This company is less known than others.

Inside the ATVI Numbers

ATVI Price
(Activision Blizzard stock price per share)
$92.58
[?] ATVI Fair Price
(based on intrinsic value)
$28.70
[?] ATVI Safety Price (based on a variable margin of safety) $17.22
[?] PE Ratio versus Sector 99% higher than other Technology stocks
[?] PE Ratio versus Industry 0% lower than other Electronic Gaming & Multimedia stocks
[?] Cash Yield 2.20%
[?] Free Cash Flow Jitter 43%
[?] Dividend Yield 1%
Shares Shorted 10,316,741

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 10,316,741 shares shorted. With 766,045,730 shares available for purchase and an average trading volume over the past 10 trading days of 5,414,442, it would take at least 1.905 days for all of the short holders to cover their shorts.

Is Activision Blizzard Stock on Sale?

We believe that Activision Blizzard may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Activision Blizzard looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy ATVI Stock?

Does Activision Blizzard have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.