Electronic Arts Inc. develops, markets, publishes, and delivers games, content, and services for game consoles, PCs, and mobile phones worldwide. It develops and publishes games and experiences across diverse genres, such as sports, racing, first-person shooter, action, role-playing, and simulation; and live services offerings, including extra content and subscription offerings through its global football and American football franchises, such as EA SPORTS College Football and EA SPORTS Madden NFL, as well as based on its IP comprising The Sims, Apex Legends, and Battlefield.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (5 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $114.92 Implied EV: $28.47B |
What growth rate is the market pricing in at $210?
The market implies +21.1% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +9.3%, reflecting heavy growth investment.
Wide moat with strength across all dimensions. Reinvestment Efficiency is the standout factor.
"Market is optimistic — be cautious and ensure you have a margin of safety"
Price far exceeds estimated intrinsic value amid market euphoria — extreme risk of capital loss
