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Electronic Arts Inc
NASDAQ:EA

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Electronic Arts Inc
NASDAQ:EA
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Price: 202.67 USD 0.08% Market Closed
Market Cap: $50.7B

EV/FCFF

21.4
Current
9%
More Expensive
vs 3-y average of 19.7

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
21.4
=
Enterprise Value
$48.8B
/
Free Cash Flow to Firm
$2.3B

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
21.4
=
Enterprise Value
$48.8B
/
Free Cash Flow to Firm
$2.3B

Valuation Scenarios

Electronic Arts Inc is trading above its 3-year average

If EV/FCFF returns to its 3-Year Average (19.7), the stock would be worth $186.79 (8% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-8%
Maximum Upside
+8%
Average Downside
0%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 21.4 $202.67
0%
3-Year Average 19.7 $186.79
-8%
5-Year Average 20.1 $190.08
-6%
Industry Average 22.3 $210.73
+4%
Country Average 23.2 $219.69
+8%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close
Market Cap EV/FCFF P/E
US
Electronic Arts Inc
NASDAQ:EA
50.7B USD 21.4 74.5
US
Activision Blizzard Inc
LSE:0H8X
74.1B USD 26.4 34.2
CN
NetEase Inc
NASDAQ:NTES
71.3B USD 6.8 14.4
JP
Nintendo Co Ltd
TSE:7974
9.3T JPY 52.2 23.1
SG
Sea Ltd
NYSE:SE
46.7B USD 8.4 29.6
US
Roblox Corp
NYSE:RBLX
39.7B USD 28.1 -37.3
US
Take-Two Interactive Software Inc
NASDAQ:TTWO
39B USD 80.2 -9.8
CN
Zhejiang Century Huatong Group Co Ltd
SZSE:002602
122.9B CNY 16.1 32.6
JP
Konami Holdings Corp
TSE:9766
2.7T JPY 47.4 31.4
JP
Nexon Co Ltd
TSE:3659
2.1T JPY 7.7 22.8
JP
Konami Group Corp
XMUN:KOA
9.1B EUR 27.4 19.4
P/E Multiple
Earnings Growth PEG
US
Electronic Arts Inc
NASDAQ:EA
Average P/E: 31.3
74.5
32%
2.3
US
A
Activision Blizzard Inc
LSE:0H8X
34.2
36%
1
CN
NetEase Inc
NASDAQ:NTES
14.4
14%
1
JP
Nintendo Co Ltd
TSE:7974
23.1
26%
0.9
SG
Sea Ltd
NYSE:SE
29.6
27%
1.1
US
Roblox Corp
NYSE:RBLX
Negative Multiple: -37.3 N/A N/A
US
Take-Two Interactive Software Inc
NASDAQ:TTWO
Negative Multiple: -9.8 N/A N/A
CN
Z
Zhejiang Century Huatong Group Co Ltd
SZSE:002602
32.6
104%
0.3
JP
Konami Holdings Corp
TSE:9766
31.4
22%
1.4
JP
N
Nexon Co Ltd
TSE:3659
22.8
18%
1.3
JP
K
Konami Group Corp
XMUN:KOA
19.4
22%
0.9

Market Distribution

In line with most companies in the United States of America
Percentile
46th
Based on 8 393 companies
46th percentile
21.4
Low
0 — 15.4
Typical Range
15.4 — 35.1
High
35.1 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 15.4
Median 23.2
70th Percentile 35.1
Max 3 178 983.5

Electronic Arts Inc
Glance View

In the world of digital entertainment, Electronic Arts Inc., commonly known as EA, stands as a towering figure in the gaming industry. Founded in 1982 by Trip Hawkins, the company has evolved from a small studio catering to home computers into a global powerhouse that shapes how millions engage with interactive entertainment. EA’s strategy integrates both creativity and strategy, allowing it to establish a formidable presence across various gaming genres. Understanding its audience's pulse, EA has harnessed beloved franchises like FIFA, Madden NFL, and The Sims to capture the hearts of gamers worldwide. These game titles are not just products; they become part of cultural phenomena, distinguished by immersive gameplay and rich storytelling that hooks players for the long haul. EA’s business model is deeply entwined with the shifting dynamics of the industry, embracing digital transformation and pioneering new revenue streams. The company adeptly balances traditional video game sales with a robust digital sales model, encompassing downloadable content (DLC), in-game purchases, and subscription services like EA Play. As gaming becomes more connected, EA capitalizes on online multiplayer experiences and live services that continuously engage users and drive recurring revenue. This approach reflects a keen understanding of evolving consumer behaviors and the rising demand for online-first, community-driven content. By leveraging its intellectual properties and resilient digital strategy, EA ensures overarching growth and a consistent flow of revenue, positioning itself as a lynchpin in the competitive gaming landscape.

EA Intrinsic Value
129.66 USD
Overvaluation 36%
Intrinsic Value
Price $202.67
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