Discounted Cash Flow (DCF) Analysis Levered
Electronic Arts Inc. (EA)
$136.68
+2.91 (+2.18%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 5,150 | 4,950 | 5,537 | 5,629 | 6,991 | 7,582.31 | 8,223.64 | 8,919.21 | 9,673.61 | 10,491.83 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 1,692 | 1,547 | 1,797 | 1,934 | 1,899 | 2,397.26 | 2,600.03 | 2,819.94 | 3,058.46 | 3,317.15 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -107 | -119 | -140 | -124 | -188 | -180.49 | -195.76 | -212.32 | -230.27 | -249.75 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 1,585 | 1,428 | 1,657 | 1,810 | 1,711 | 2,216.77 | 2,404.27 | 2,607.63 | 2,828.18 | 3,067.40 |
Weighted Average Cost Of Capital
Share price | $ 136.68 |
---|---|
Beta | 0.827 |
Diluted Shares Outstanding | 292 |
Cost of Debt | |
Tax Rate | 27.01 |
After-tax Cost of Debt | 3.65% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 6.666 |
Total Debt | - |
Total Equity | 39,910.56 |
Total Capital | 39,910.56 |
Debt Weighting | 0.00 |
Equity Weighting | 100.00 |
Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 5,150 | 4,950 | 5,537 | 5,629 | 6,991 | 7,582.31 | 8,223.64 | 8,919.21 | 9,673.61 | 10,491.83 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 1,692 | 1,547 | 1,797 | 1,934 | 1,899 | 2,397.26 | 2,600.03 | 2,819.94 | 3,058.46 | 3,317.15 |
Capital Expenditure | -107 | -119 | -140 | -124 | -188 | -180.49 | -195.76 | -212.32 | -230.27 | -249.75 |
Free Cash Flow | 1,585 | 1,428 | 1,657 | 1,810 | 1,711 | 2,216.77 | 2,404.27 | 2,607.63 | 2,828.18 | 3,067.40 |
WACC | ||||||||||
PV LFCF | 2,078.16 | 2,113 | 2,148.42 | 2,184.43 | 2,221.05 | |||||
SUM PV LFCF | 10,745.05 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 6.67 |
Free cash flow (t + 1) | 3,128.75 |
Terminal Value | 66,996.71 |
Present Value of Terminal Value | 48,511.20 |
Intrinsic Value
Enterprise Value | 59,256.25 |
---|---|
Net Debt | -2,732 |
Equity Value | 61,988.25 |
Shares Outstanding | 292 |
Equity Value Per Share | 212.29 |