Intrinsic Valuation of: EA
Free Cash Flow Average and Growth over past 5Y Key Statistics
Year FCF FCF (FCF/Revenue)
2020 - - EPS (FY) 4 Market Cap $50B
2021 - - (-) P/E Ratio 57 Total Asset $12B
2022 $2B - (-) Net Income - Total Debt $1B
2023 $1B -21.5% (-26.1%) EBITDA - Total Liab $6B
2024 $2B 57.6% (54.7%) Opr Margin - Debt/Equity 0.23
2025 $2B -12.2% (-11.0%) PreTax Margin - BV/Share 3
5Y Average FCF $2B 4.5% (5.9%)
Overall Market Assumptions:
Assumptions: P/E for No-Growth Company: 7.0
Perpetual Growth Rate (g): 2.48% Historical US Bond Yield: 4.40%
Discount Rate (WACC): 7.00% Current US Bond Yield: 3.48%
Forcasting Future Free Cash Flow for next 6Y Modified Benjamin Graham's Intrinsic Value
Year FCF Projection (4.5%)
2026 $2B MBG Intrinsic Value $31
2027 $2B
2028 $2B
2029 $2B
2030 $2B
2031 $2B
Terminal Value $51B Net Worth/Share $25
DCF Valuation DCF Valuation "What If" Scenario Table
Enterprise Value $44B Growth Rate
(+) Cash & Cash Equivalents $2B $177 1.5% 2.0% 2.5% 3.0% 3.5%
(-) Total Debt $1B WACC 6.5% 167 181 199 222 253
Equity Value $44B 7.1% 149 160 173 189 211
Shares Outstanding 250,751,484 7.8% 134 142 152 165 180
8.4% 122 128 136 146 157
DCF Intrinsic Value $177 9.0% 112 117 124 131 140
Analyzed by QuantJuice (2025)