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Electronic Arts Inc.
EA
129.40 (0.00%) 0.00
33.72(B)
Communication Services
Entertainment
Electronic Arts Inc. develops markets publishes and delivers games content and services for game consoles PCs mobile phones and tablets worldwide. It develops and publishes games and services across various genres such as sports racing first-person shooter action role-playing and simulation through owned and licensed brands such as EA SPORTS FC Battlefield Apex Legends The Sims Madden NFL Need for Speed Titanfall and F1 brands. The company licenses its games to third parties to distribute and host its games and content. It markets and sells its games and services through digital distribution and retail channels as well as directly to mass market retailers specialty stores and distribution arrangements. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City California.
Holdings:
Shares:
Cost basis:

Electronic Arts Inc. (EA) price target and intrinsic value estimate

EA's fair price estimate is $133.9

This valuation is based on a fair P/E of 21.0 and EPS estimates of $6.39

The median analyst price target for EA is $140.0.

Analyst price targets range from $125.0 to $179.0

Is EA overvalued or undervalued?

EA is currently trading at $129.4

EA is undervalued by 3% using the pevaluation method.

EA is undervalued by 8% compared to median analyst price targets.

Do you agree with this valuation?

Valuation

PEvaluation

Current price
$129.4
Fairly valued
Low
$100
Median
$134
High
$167
Fair P/E
Margin of safety

Analyst valuation

Current price
$129.4
Fairly valued
Low
$125
Median
$140
High
$179
Strong Buy1
Buy7
Hold17
Sell0
Strong Sell0

Discounted cash-flow

N/A
Negative FCF or FCF estimates
TTM FCFFCF est.Growth FCFTerminal FCF
Discount
rate
10%
Terminal
rate
5%
Growth p.
length
5y
Growth p.
rate
10%
Shares outstan...ROICRevenue growthDebt/FCFAssets/Liabili...
Economic moat: Wide
None/narrowMediumWideVery wide

Overview

Market data

Market cap:$33.72(B)
Enterprise value:$32.85(B)
Total Equity:$7.41(B)
Shares outstanding:260.62(M)
Div. yield:0.59%
P/S:4.66
P/E:32.68
P/FCF:17.90
P/B:4.57
EPS:$4.0
FCF per share:$7.2
Dividend per share:$0.8

Income (TTM)

RevenueGrossNet
Revenue$7.35(B)
Gross profit$5.83(B)
EBITDA$1.90(B)
Net income$1.05(B)
Gross margin79.4%
Net margin14.3%

Balance sheet

Cash & ST inv.Other ST assetsLong term assetsCurrent liabilitiesLong term debtOther LT liabilitiesEquity
Total assets$13.45(B)
Total liabilities$6.04(B)
Cash & Short-term inv.$3.15(B)
Long-term debt$1.88(B)
Debt issued$0
Debt repaid$0

Cash flow (TTM)

CFOCFICFF
FCF$1.89(B)
CapEx$-218.00(M)
Dividends paid$-202.00(M)
Stock issued$77.00(M)
Stock repurchased$-1.69(B)
Stock-based comp.$628.00(M)

Future Growth

Revenue

CAGR: 4.1%
FY+1FY+2FY+3FY+4FY+5
FY+1$7.12(B)
FY+2$7.57(B)
FY+3$8.13(B)
FY+4$8.05(B)
FY+5$8.38(B)

Net Income

CAGR: 10.4%
FY+1FY+2FY+3FY+4
FY+1$1.74(B)
FY+2$1.95(B)
FY+3$2.20(B)
FY+4$2.34(B)

EPS

CAGR: 10.4%
FY+1FY+2FY+3FY+4
FY+1$6.56
FY+2$7.48
FY+3$8.52
FY+4$8.82

FCF per share

CAGR: 14.0%
FY+1FY+2FY+3FY+4
FY+1$7.32
FY+2$8.58
FY+3$9.73
FY+4$10.84

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Historical Financials

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