Discounted Cash Flow

Electronic Arts Inc.

EA · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2017 $4.8b $967.0m $1.4b 20.0% $3.19
2018 $5.2b (6.3%) $1.0b (7.9%) $1.7b (22.3%) 20.3% (1.5%) $3.39 (6.3%)
2019 $5.0b (-3.9%) $1.0b (-2.3%) $1.5b (-8.6%) 20.6% (1.6%) $3.36 (-0.9%)
2020 $5.5b (11.9%) $3.0b (198.2%) $1.8b (16.2%) 54.9% (166.6%) $10.37 (208.6%)
2021 $5.6b (1.7%) $837.0m (-72.5%) $1.9b (7.6%) 14.9% (-72.9%) $2.90 (-72.0%)
2022 $7.0b (24.2%) $789.0m (-5.7%) $1.9b (-1.8%) 11.3% (-24.1%) $2.78 (-4.1%)
2023 $7.4b (6.2%) $802.0m (1.6%) $1.3b (-29.3%) 10.8% (-4.3%) $2.90 (4.3%)
2024 $7.6b (1.8%) $1.3b (58.7%) $2.1b (57.6%) 16.8% (55.9%) $4.71 (62.4%)
2025 $7.5b (-1.3%) $1.1b (-11.9%) $1.9b (-12.2%) 15.0% (-10.8%) $4.28 (-9.1%)
2026 $7.5b (0.9%) $887.0m (-20.9%) $2.3b (25.0%) 11.8% (-21.6%) $3.55 (-17.1%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model