| 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 | $40B | |||||
| 2021 | - | - (-) | P/E Ratio | 37 | Total Asset | $12B | |||||
| 2022 | $2B | - (-) | Net Income | $1B | Total Debt | $1B | |||||
| 2023 | $1B | -21.5% (-26.1%) | EBITDA | $2B | Total Liab | $6B | |||||
| 2024 | $2B | 57.6% (54.7%) | Opr Margin | 0.21 | Debt/Equity | 0.23 | |||||
| 2025 | $2B | -12.2% (-11.0%) | PreTax Margin | 20.35 | BV/Share | 3 | |||||
| 5Y Average FCF | $2B | 8.0% (5.9%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 2.5% | Historical US Bond Yield: | 4.4% | ||||||||
| Discount Rate (WACC): | 7.4% | Current US Bond Yield: | 3.5% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (8.0%) | ||||||||||
| 2026 | $2B | MBG Intrinsic Value | $38 | ||||||||
| 2027 | $2B | ||||||||||
| 2028 | $2B | ||||||||||
| 2029 | $3B | ||||||||||
| 2030 | $3B | ||||||||||
| 2031 | $3B | ||||||||||
| Terminal Value | $61B | Net Worth/Share | $25 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $51B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $2B | $206 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $1B | WACC | 7.3% | 181 | 194 | 210 | 230 | 255 | |||
| Equity Value | $52B | 7.4% | 180 | 193 | 208 | 227 | 251 | ||||
| Shares Outstanding | 251,272,000 | 7.4% | 178 | 191 | 206 | 225 | 248 | ||||
| 7.9% | 164 | 174 | 187 | 202 | 220 | ||||||
| DCF Intrinsic Value | $206 | 8.4% | 152 | 161 | 171 | 183 | 197 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||