Discounted Cash Flow (DCF) Analysis Levered
Electronic Arts Inc. (EA)
$125.94
-1.17 (-0.92%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Actual | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
Revenue | 4,950 | 5,537 | 5,629 | 6,991 | 7,426 | 8,241.72 | 9,147.04 | 10,151.81 | 11,266.95 | 12,504.58 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 1,547 | 1,797 | 1,934 | 1,899 | 1,550 | 2,408.24 | 2,672.78 | 2,966.38 | 3,292.22 | 3,653.86 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -119 | -140 | -124 | -188 | -207 | -207.89 | -230.73 | -256.07 | -284.20 | -315.42 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 1,428 | 1,657 | 1,810 | 1,711 | 1,343 | 2,200.35 | 2,442.05 | 2,710.31 | 3,008.02 | 3,338.44 |
Weighted Average Cost Of Capital
Share price | $ 125.94 |
---|---|
Beta | 0.867 |
Diluted Shares Outstanding | 278 |
Cost of Debt | |
Tax Rate | 39.52 |
After-tax Cost of Debt | 0.19% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 7.836 |
Total Debt | 1,880 |
Total Equity | 35,011.32 |
Total Capital | 36,891.32 |
Debt Weighting | 5.10 |
Equity Weighting | 94.90 |
Wacc |
Build Up Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Actual | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
Revenue | 4,950 | 5,537 | 5,629 | 6,991 | 7,426 | 8,241.72 | 9,147.04 | 10,151.81 | 11,266.95 | 12,504.58 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 1,547 | 1,797 | 1,934 | 1,899 | 1,550 | 2,408.24 | 2,672.78 | 2,966.38 | 3,292.22 | 3,653.86 |
Capital Expenditure | -119 | -140 | -124 | -188 | -207 | -207.89 | -230.73 | -256.07 | -284.20 | -315.42 |
Free Cash Flow | 1,428 | 1,657 | 1,810 | 1,711 | 1,343 | 2,200.35 | 2,442.05 | 2,710.31 | 3,008.02 | 3,338.44 |
WACC | ||||||||||
PV LFCF | 1,773.67 | 1,832.02 | 1,892.28 | 1,954.53 | 2,018.83 | |||||
SUM PV LFCF | 10,935.13 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.45 |
Free cash flow (t + 1) | 3,405.21 |
Terminal Value | 62,480.96 |
Present Value of Terminal Value | 43,623.01 |
Intrinsic Value
Enterprise Value | 54,558.14 |
---|---|
Net Debt | -544 |
Equity Value | 55,102.14 |
Shares Outstanding | 278 |
Equity Value Per Share | 198.21 |