Last Price$129.20.1%
Market Cap$34.3B
DCF value
$147.6
Undervalued (DCF value)
14.2%
Discount Rate
7.4%
Long-Term Growth Rate
4.0%
Stock quality
6/10
Good
EA DCF Model
Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
| Mar'20 Actual | Mar'21 Actual | Mar'22 Actual | Mar'23 Actual | Mar'24 Actual | Mar'25 Estimate | Mar'26 Estimate | Mar'27 Estimate | Mar'28 Estimate | Mar'29 Estimate | Mar'30 Estimate | Mar'31 Estimate | Mar'32 Estimate | Mar'33 Estimate | Mar'34 Estimate | Mar'35 Terminal | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
% growth | 5,537.0 11.9% | 5,629.0 1.7% | 6,991.0 24.2% | 7,426.0 6.2% | 7,562.0 1.8% | 7,681.7 1.6% | 8,148.4 6.1% | 8,679.6 6.5% | 9,093.5 4.8% | 9,476.0 4.2% | 9,871.3 4.2% | 10,279.8 4.1% | 10,701.6 4.1% | 11,137.0 4.1% | 11,586.3 4.0% | 12,049.7 4.0% |
% margin | 1,445.0 26.1% | 1,046.0 18.6% | 1,129.0 16.1% | 1,332.0 17.9% | 1,518.0 20.1% | 1,584.5 20.6% | 1,680.8 20.6% | 1,790.4 20.6% | 1,875.7 20.6% | 1,954.6 20.6% | 2,036.2 20.6% | 2,120.4 20.6% | 2,207.4 20.6% | 2,297.2 20.6% | 2,389.9 20.6% | 2,485.5 20.6% |
NOPAT % effective tax rate | 2,912.0 52.6% | 860.9 15.3% | 824.0 11.8% | 805.6 10.8% | 1,216.1 16.1% | 1,269.4 16.5% | 1,346.5 16.5% | 1,434.3 16.5% | 1,502.7 16.5% | 1,565.9 16.5% | 1,631.2 16.5% | 1,698.7 16.5% | 1,768.4 16.5% | 1,840.4 16.5% | 1,914.6 16.5% | 1,991.2 16.5% |
% of revenue | 150.0 2.7% | 181.0 3.2% | 486.0 7.0% | 431.0 5.8% | 344.0 4.5% | 443.1 5.8% | 470.0 5.8% | 500.7 5.8% | 524.5 5.8% | 546.6 5.8% | 569.4 5.8% | 593.0 5.8% | 617.3 5.8% | 642.4 5.8% | 668.3 5.8% | 695.1 5.8% |
% of revenue | (140.0) (2.5%) | (124.0) (2.2%) | (188.0) (2.7%) | (207.0) (2.8%) | (199.0) (2.6%) | (207.6) (2.7%) | (220.2) (2.7%) | (234.6) (2.7%) | (245.8) (2.7%) | (256.1) (2.7%) | (266.8) (2.7%) | (277.8) (2.7%) | (289.2) (2.7%) | (301.0) (2.7%) | (313.1) (2.7%) | (325.7) (2.7%) |
% of revenue | (1,744.0) (31.5%) | 481.0 8.5% | 96.0 1.4% | (336.0) (4.5%) | 54.0 0.7% | (62.4) (0.8%) | (66.2) (0.8%) | (70.5) (0.8%) | (73.9) (0.8%) | (77.0) (0.8%) | (80.2) (0.8%) | (83.5) (0.8%) | (86.9) (0.8%) | (90.5) (0.8%) | (94.1) (0.8%) | (97.9) (0.8%) |
Free Cash Flow to Firm (FCFF) % of revenue | 1,178.0 21.3% | 1,398.9 24.9% | 1,218.0 17.4% | 693.6 9.3% | 1,415.1 18.7% | 1,442.5 18.8% | 1,530.1 18.8% | 1,629.9 18.8% | 1,707.6 18.8% | 1,779.4 18.8% | 1,853.6 18.8% | 1,930.3 18.8% | 2,009.6 18.8% | 2,091.3 18.8% | 2,175.7 18.8% | 2,262.7 18.8% |
% of FCFF used in calculation | 7.7% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | ||||||
Discount period | 0.50 | 1.50 | 2.50 | 3.50 | 4.50 | 5.50 | 6.50 | 7.50 | 8.50 | 9.50 | ||||||
Discount factor | 0.96 | 0.90 | 0.84 | 0.78 | 0.73 | 0.68 | 0.63 | 0.59 | 0.54 | 0.51 | ||||||
Discounted FCFF (DFCFF) | 106.8 | 1,374.6 | 1,363.2 | 1,329.8 | 1,290.1 | 1,251.3 | 1,213.2 | 1,175.9 | 1,139.3 | 1,103.5 |
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EA DCF Value
DCF Value Calculation
as of Mar 03, 2025
Sum of DFCFF
% share of EV
11.3B
30.0%
Terminal Value (TV)
52.2B
Discounted TV
% share of EV
26.5B
70.0%
3,262.0M
Total Debt
1,948.0M
39.1B
Shares outstanding
265.2M
FX rate
1.0
147.6
14.2% undervalued
Equity Value Bridge
EA DCF Financials
Revenue
$7,562.0M -> $11.6B
4.4% CAGR
Operating Income
$1,518.0M -> $2,389.9M
4.6% CAGR
FCFF
$1,415.1M -> $2,175.7M
4.4% CAGR
EA DCF sensitivity
DCF value
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
6.0%
$158.0
$158.0
$158.0
$158.0
$158.0
6.5%
$154.0
$154.0
$154.0
$154.0
$154.0
7.4%
$146.0
$148.0
$148.0
$148.0
$148.0
7.5%
$143.0
$147.0
$147.0
$147.0
$147.0
8.0%
$129.0
$138.0
$144.0
$144.0
$144.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
6.0%
22.0%
22.0%
22.0%
22.0%
22.0%
6.5%
19.0%
19.0%
19.0%
19.0%
19.0%
7.4%
13.0%
15.0%
15.0%
15.0%
15.0%
7.5%
11.0%
14.0%
14.0%
14.0%
14.0%
8.0%
0.0%
7.0%
11.0%
11.0%
11.0%
Explore more intrinsic value tools hub for EA
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FAQ
What is Electronic Arts Inc. DCF (discounted cash flow) valuation?
As of Mar 03, 2025, Electronic Arts Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $147.6. This suggests it may be undervalued by 14.2% compared to its current price of around $129.2, using a WACC of 7.4% and growth rates of 4.0%.
What is Electronic Arts Inc. WACC?
As of Mar 03, 2025, Electronic Arts Inc.'s Weighted Average Cost of Capital (WACC) is approximately 7.4%.
What is Electronic Arts Inc. Enterprise Value?
As of Mar 03, 2025, Electronic Arts Inc.'s Enterprise Value (EV) is approximately $37.8B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.