Intrinsic value of Electronic Arts - EA

Previous Close

$113.62

  Intrinsic Value

$201.81

stock screener

  Rating & Target

str. buy

+78%

Previous close

$113.62

 
Intrinsic value

$201.81

 
Up/down potential

+78%

 
Rating

str. buy

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of EA stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 35.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  10.21
  14.00
  13.10
  12.29
  11.56
  10.90
  10.31
  9.78
  9.30
  8.87
  8.49
  8.14
  7.82
  7.54
  7.29
  7.06
  6.85
  6.67
  6.50
  6.35
  6.22
  6.09
  5.98
  5.89
  5.80
  5.72
  5.65
  5.58
  5.52
  5.47
  5.42
Revenue, $m
  4,845
  5,523
  6,247
  7,015
  7,826
  8,679
  9,574
  10,511
  11,489
  12,508
  13,570
  14,674
  15,822
  17,016
  18,256
  19,544
  20,884
  22,276
  23,724
  25,231
  26,799
  28,432
  30,134
  31,908
  33,758
  35,688
  37,703
  39,807
  42,006
  44,304
  46,707
Variable operating expenses, $m
 
  1,489
  1,662
  1,846
  2,039
  2,243
  2,457
  2,680
  2,914
  3,157
  3,411
  3,504
  3,778
  4,063
  4,359
  4,667
  4,986
  5,319
  5,665
  6,024
  6,399
  6,789
  7,195
  7,619
  8,060
  8,521
  9,002
  9,505
  10,030
  10,578
  11,152
Fixed operating expenses, $m
 
  2,410
  2,470
  2,532
  2,595
  2,660
  2,726
  2,795
  2,864
  2,936
  3,009
  3,085
  3,162
  3,241
  3,322
  3,405
  3,490
  3,577
  3,667
  3,758
  3,852
  3,949
  4,047
  4,149
  4,252
  4,359
  4,468
  4,579
  4,694
  4,811
  4,931
Total operating expenses, $m
  3,621
  3,899
  4,132
  4,378
  4,634
  4,903
  5,183
  5,475
  5,778
  6,093
  6,420
  6,589
  6,940
  7,304
  7,681
  8,072
  8,476
  8,896
  9,332
  9,782
  10,251
  10,738
  11,242
  11,768
  12,312
  12,880
  13,470
  14,084
  14,724
  15,389
  16,083
Operating income, $m
  1,224
  1,624
  2,115
  2,637
  3,191
  3,776
  4,391
  5,036
  5,710
  6,415
  7,150
  8,086
  8,883
  9,712
  10,575
  11,473
  12,407
  13,380
  14,393
  15,448
  16,548
  17,695
  18,892
  20,141
  21,445
  22,808
  24,233
  25,723
  27,283
  28,915
  30,624
EBITDA, $m
  1,396
  1,837
  2,333
  2,862
  3,422
  4,013
  4,635
  5,287
  5,969
  6,681
  7,424
  8,198
  9,003
  9,842
  10,714
  11,622
  12,567
  13,550
  14,574
  15,641
  16,753
  17,912
  19,122
  20,384
  21,703
  23,081
  24,521
  26,027
  27,603
  29,253
  30,980
Interest expense (income), $m
  43
  40
  24
  41
  59
  79
  99
  120
  142
  165
  189
  214
  241
  268
  296
  325
  356
  388
  421
  455
  490
  528
  566
  607
  648
  692
  738
  786
  835
  888
  942
Earnings before tax, $m
  1,210
  1,584
  2,091
  2,596
  3,132
  3,698
  4,292
  4,916
  5,568
  6,250
  6,960
  7,871
  8,642
  9,444
  10,279
  11,147
  12,051
  12,992
  13,972
  14,993
  16,058
  17,167
  18,325
  19,534
  20,797
  22,116
  23,495
  24,938
  26,447
  28,027
  29,682
Tax expense, $m
  243
  428
  564
  701
  846
  998
  1,159
  1,327
  1,503
  1,687
  1,879
  2,125
  2,333
  2,550
  2,775
  3,010
  3,254
  3,508
  3,773
  4,048
  4,336
  4,635
  4,948
  5,274
  5,615
  5,971
  6,344
  6,733
  7,141
  7,567
  8,014
Net income, $m
  967
  1,157
  1,526
  1,895
  2,286
  2,699
  3,133
  3,589
  4,065
  4,562
  5,081
  5,746
  6,309
  6,894
  7,504
  8,138
  8,797
  9,484
  10,200
  10,945
  11,722
  12,532
  13,377
  14,260
  15,182
  16,145
  17,151
  18,204
  19,306
  20,460
  21,668

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  4,532
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  7,718
  3,631
  4,107
  4,612
  5,145
  5,706
  6,295
  6,910
  7,553
  8,224
  8,922
  9,648
  10,403
  11,187
  12,002
  12,850
  13,730
  14,646
  15,598
  16,588
  17,619
  18,693
  19,812
  20,978
  22,194
  23,463
  24,788
  26,172
  27,617
  29,128
  30,708
Adjusted assets (=assets-cash), $m
  3,186
  3,631
  4,107
  4,612
  5,145
  5,706
  6,295
  6,910
  7,553
  8,224
  8,922
  9,648
  10,403
  11,187
  12,002
  12,850
  13,730
  14,646
  15,598
  16,588
  17,619
  18,693
  19,812
  20,978
  22,194
  23,463
  24,788
  26,172
  27,617
  29,128
  30,708
Revenue / Adjusted assets
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
  1.521
Average production assets, $m
  469
  536
  606
  680
  759
  842
  929
  1,020
  1,114
  1,213
  1,316
  1,423
  1,535
  1,651
  1,771
  1,896
  2,026
  2,161
  2,301
  2,447
  2,600
  2,758
  2,923
  3,095
  3,274
  3,462
  3,657
  3,861
  4,075
  4,298
  4,531
Working capital, $m
  2,784
  -1,994
  -2,255
  -2,532
  -2,825
  -3,133
  -3,456
  -3,794
  -4,147
  -4,515
  -4,899
  -5,297
  -5,712
  -6,143
  -6,590
  -7,055
  -7,539
  -8,042
  -8,564
  -9,108
  -9,675
  -10,264
  -10,878
  -11,519
  -12,187
  -12,883
  -13,611
  -14,370
  -15,164
  -15,994
  -16,861
Total debt, $m
  990
  600
  1,028
  1,483
  1,963
  2,467
  2,997
  3,551
  4,130
  4,733
  5,361
  6,015
  6,694
  7,400
  8,134
  8,897
  9,689
  10,513
  11,370
  12,262
  13,190
  14,156
  15,163
  16,212
  17,307
  18,449
  19,641
  20,887
  22,188
  23,547
  24,969
Total liabilities, $m
  3,658
  3,268
  3,696
  4,151
  4,631
  5,135
  5,665
  6,219
  6,798
  7,401
  8,029
  8,683
  9,362
  10,068
  10,802
  11,565
  12,357
  13,181
  14,038
  14,930
  15,858
  16,824
  17,831
  18,880
  19,975
  21,117
  22,309
  23,555
  24,856
  26,215
  27,637
Total equity, $m
  4,060
  363
  411
  461
  515
  571
  629
  691
  755
  822
  892
  965
  1,040
  1,119
  1,200
  1,285
  1,373
  1,465
  1,560
  1,659
  1,762
  1,869
  1,981
  2,098
  2,219
  2,346
  2,479
  2,617
  2,762
  2,913
  3,071
Total liabilities and equity, $m
  7,718
  3,631
  4,107
  4,612
  5,146
  5,706
  6,294
  6,910
  7,553
  8,223
  8,921
  9,648
  10,402
  11,187
  12,002
  12,850
  13,730
  14,646
  15,598
  16,589
  17,620
  18,693
  19,812
  20,978
  22,194
  23,463
  24,788
  26,172
  27,618
  29,128
  30,708
Debt-to-equity ratio
  0.244
  1.650
  2.500
  3.210
  3.810
  4.320
  4.760
  5.140
  5.470
  5.760
  6.010
  6.230
  6.440
  6.620
  6.780
  6.920
  7.060
  7.180
  7.290
  7.390
  7.490
  7.570
  7.650
  7.730
  7.800
  7.860
  7.920
  7.980
  8.030
  8.080
  8.130
Adjusted equity ratio
  -0.148
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  967
  1,157
  1,526
  1,895
  2,286
  2,699
  3,133
  3,589
  4,065
  4,562
  5,081
  5,746
  6,309
  6,894
  7,504
  8,138
  8,797
  9,484
  10,200
  10,945
  11,722
  12,532
  13,377
  14,260
  15,182
  16,145
  17,151
  18,204
  19,306
  20,460
  21,668
Depreciation, amort., depletion, $m
  172
  213
  218
  224
  230
  237
  244
  251
  258
  266
  274
  112
  121
  130
  139
  149
  160
  170
  181
  193
  205
  217
  230
  244
  258
  273
  288
  304
  321
  338
  357
Funds from operations, $m
  1,331
  1,370
  1,745
  2,119
  2,517
  2,936
  3,377
  3,840
  4,323
  4,829
  5,355
  5,858
  6,429
  7,024
  7,643
  8,287
  8,957
  9,655
  10,381
  11,138
  11,927
  12,749
  13,608
  14,504
  15,439
  16,417
  17,439
  18,509
  19,627
  20,798
  22,024
Change in working capital, $m
  -52
  -245
  -261
  -277
  -293
  -308
  -323
  -338
  -353
  -368
  -383
  -399
  -414
  -431
  -448
  -465
  -484
  -503
  -523
  -544
  -566
  -590
  -614
  -640
  -668
  -697
  -727
  -760
  -794
  -830
  -867
Cash from operations, $m
  1,383
  1,614
  2,006
  2,397
  2,810
  3,244
  3,700
  4,178
  4,676
  5,197
  5,739
  6,257
  6,844
  7,455
  8,091
  8,752
  9,440
  10,157
  10,904
  11,682
  12,493
  13,339
  14,222
  15,144
  16,107
  17,114
  18,167
  19,268
  20,421
  21,628
  22,892
Maintenance CAPEX, $m
  0
  -37
  -42
  -48
  -54
  -60
  -66
  -73
  -80
  -88
  -96
  -104
  -112
  -121
  -130
  -139
  -149
  -160
  -170
  -181
  -193
  -205
  -217
  -230
  -244
  -258
  -273
  -288
  -304
  -321
  -338
New CAPEX, $m
  -123
  -67
  -70
  -74
  -79
  -83
  -87
  -91
  -95
  -99
  -103
  -107
  -111
  -116
  -120
  -125
  -130
  -135
  -140
  -146
  -152
  -158
  -165
  -172
  -179
  -187
  -195
  -204
  -213
  -223
  -233
Cash from investing activities, $m
  -759
  -104
  -112
  -122
  -133
  -143
  -153
  -164
  -175
  -187
  -199
  -211
  -223
  -237
  -250
  -264
  -279
  -295
  -310
  -327
  -345
  -363
  -382
  -402
  -423
  -445
  -468
  -492
  -517
  -544
  -571
Free cash flow, $m
  624
  1,511
  1,893
  2,274
  2,677
  3,102
  3,547
  4,014
  4,501
  5,010
  5,540
  6,046
  6,621
  7,218
  7,840
  8,488
  9,161
  9,863
  10,593
  11,354
  12,148
  12,976
  13,840
  14,742
  15,684
  16,669
  17,699
  18,776
  19,904
  21,084
  22,320
Issuance/(repayment) of debt, $m
  -163
  -390
  428
  454
  480
  505
  530
  554
  579
  603
  628
  653
  679
  706
  734
  763
  793
  824
  857
  892
  928
  966
  1,007
  1,050
  1,095
  1,142
  1,192
  1,245
  1,301
  1,360
  1,422
Issuance/(repurchase) of shares, $m
  -436
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -534
  -390
  428
  454
  480
  505
  530
  554
  579
  603
  628
  653
  679
  706
  734
  763
  793
  824
  857
  892
  928
  966
  1,007
  1,050
  1,095
  1,142
  1,192
  1,245
  1,301
  1,360
  1,422
Total cash flow (excl. dividends), $m
  72
  1,121
  2,322
  2,729
  3,157
  3,607
  4,077
  4,568
  5,080
  5,613
  6,168
  6,699
  7,300
  7,924
  8,574
  9,250
  9,954
  10,687
  11,450
  12,246
  13,076
  13,942
  14,847
  15,791
  16,779
  17,811
  18,891
  20,021
  21,205
  22,444
  23,742
Retained Cash Flow (-), $m
  -664
  -835
  -48
  -50
  -53
  -56
  -59
  -62
  -64
  -67
  -70
  -73
  -75
  -78
  -82
  -85
  -88
  -92
  -95
  -99
  -103
  -107
  -112
  -117
  -122
  -127
  -132
  -138
  -145
  -151
  -158
Prev. year cash balance distribution, $m
 
  4,532
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  4,818
  2,274
  2,678
  3,104
  3,551
  4,018
  4,506
  5,016
  5,546
  6,098
  6,627
  7,224
  7,846
  8,493
  9,165
  9,866
  10,595
  11,355
  12,147
  12,973
  13,835
  14,735
  15,675
  16,657
  17,684
  18,759
  19,883
  21,060
  22,293
  23,584
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  4,619
  2,082
  2,331
  2,556
  2,752
  2,916
  3,044
  3,135
  3,186
  3,197
  3,147
  3,083
  2,983
  2,851
  2,691
  2,507
  2,305
  2,091
  1,870
  1,648
  1,431
  1,223
  1,027
  848
  688
  547
  427
  326
  243
  178
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Electronic Arts Inc. develops, markets, publishes and distributes games, content and services that can be played by consumers on a range of platforms, which include consoles, personal computers (PCs), mobile phones and tablets. The Company's games and services are based on a portfolio of intellectual property that includes established brands, such as FIFA, Madden NFL, Star Wars, Battlefield, the Sims and Need for Speed. The Company markets and sells its games and services through retail channels and through digital distribution channels. The Company's PC games and additional content can be downloaded directly through its Origin online platform, as well as through third-party online download stores. Its mobile, tablet and PC free-to-download games and additional content are available through third-party application storefronts, such as the Apple Application Store and Google Play.

FINANCIAL RATIOS  of  Electronic Arts (EA)

Valuation Ratios
P/E Ratio 36.2
Price to Sales 7.2
Price to Book 8.6
Price to Tangible Book
Price to Cash Flow 25.3
Price to Free Cash Flow 27.8
Growth Rates
Sales Growth Rate 10.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 32.3%
Cap. Spend. - 3 Yr. Gr. Rate 4.9%
Financial Strength
Quick Ratio NaN
Current Ratio 0.1
LT Debt to Equity 24.4%
Total Debt to Equity 24.4%
Interest Coverage 29
Management Effectiveness
Return On Assets 13.6%
Ret/ On Assets - 3 Yr. Avg. 15.3%
Return On Total Capital 20.2%
Ret/ On T. Cap. - 3 Yr. Avg. 24.8%
Return On Equity 25.9%
Return On Equity - 3 Yr. Avg. 31.3%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 73.5%
Gross Margin - 3 Yr. Avg. 70.4%
EBITDA Margin 29.4%
EBITDA Margin - 3 Yr. Avg. 26.5%
Operating Margin 25.3%
Oper. Margin - 3 Yr. Avg. 22.2%
Pre-Tax Margin 25%
Pre-Tax Margin - 3 Yr. Avg. 21.8%
Net Profit Margin 20%
Net Profit Margin - 3 Yr. Avg. 21.9%
Effective Tax Rate 20.1%
Eff/ Tax Rate - 3 Yr. Avg. -2.1%
Payout Ratio 0%

EA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the EA stock intrinsic value calculation we used $4845 million for the last fiscal year's total revenue generated by Electronic Arts. The default revenue input number comes from 2017 income statement of Electronic Arts. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our EA stock valuation model: a) initial revenue growth rate of 14% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for EA is calculated based on our internal credit rating of Electronic Arts, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Electronic Arts.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of EA stock the variable cost ratio is equal to 27.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $2351 million in the base year in the intrinsic value calculation for EA stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4% for Electronic Arts.

Corporate tax rate of 27% is the nominal tax rate for Electronic Arts. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the EA stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for EA are equal to 9.7%.

Life of production assets of 12.7 years is the average useful life of capital assets used in Electronic Arts operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for EA is equal to -36.1%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $4060 million for Electronic Arts - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 308.748 million for Electronic Arts is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Electronic Arts at the current share price and the inputted number of shares is $35.1 billion.

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COMPANY NEWS

▶ Electronic Arts Earnings Preview: What to Watch   [Oct-22-17 09:48PM  Motley Fool]
▶ Company News For Oct 19, 2017   [Oct-19-17 10:04AM  Zacks]
▶ IBM and Canadian Pacific climb while Electronic Arts drops   [Oct-18-17 04:41PM  Associated Press]
▶ Electronic Arts Loses The Force After Delaying Star Wars Game   [04:37PM  Investor's Business Daily]
▶ 4 health stocks and a gamer in the Blitz   [02:33PM  CNBC Videos]
▶ EA shuts down studio developing 'Star Wars' game   [Oct-17-17 04:41PM  MarketWatch]
▶ Glaxis Capital Betting Big On Video Games   [Oct-16-17 03:08PM  Insider Monkey]
▶ The stock market rally isn't about tax cuts   [Oct-12-17 11:50AM  Yahoo Finance]
▶ Take-Two's Stunning Run Isn't Over Yet   [Oct-11-17 05:17PM  GuruFocus.com]
▶ [$$] Videogames' Winning Streak Could Continue   [Oct-07-17 12:43AM  Barrons.com]
▶ Stay Away! This Dividend Stock Is a Yield Trap   [Oct-05-17 10:15PM  Motley Fool]
▶ Barclays Likes EA, Take-Two Among Gamer Stocks   [Oct-04-17 01:50PM  Benzinga]
▶ 3 Video Game Stocks That Are Bargains Right Now   [Oct-02-17 12:12PM  InvestorPlace]
▶ When Should You Buy Electronic Arts Inc (EA)?   [Sep-29-17 10:37AM  Simply Wall St.]
▶ A Look at Gaming Companies Stock Returns   [01:06PM  Market Realist]
▶ Analyst Picks: 3 Gaming Stocks to Buy   [Sep-20-17 12:54PM  Motley Fool]
▶ Become THE ONE in NBA LIVE 18 Today   [10:00AM  Business Wire]
▶ Apart From China, Where Else Can EA Expand?   [Sep-13-17 01:33PM  Forbes]
▶ Is There Now An Opportunity In Electronic Arts Inc (EA)?   [Sep-12-17 05:43PM  Simply Wall St.]
▶ Better Buy: Ubisoft Entertainment vs Electronic Arts   [Sep-11-17 10:45PM  Motley Fool]
▶ Here's How Digital Revenue Has Benefited Electronic Arts   [Sep-09-17 08:06PM  Motley Fool]
▶ EA Learns to Play the Long Game   [01:41PM  Barrons.com]
▶ A Look at Digital Revenue Growth for Electronic Arts   [Sep-07-17 10:37AM  Market Realist]
▶ How Electronic Arts Expects to Drive Revenue Growth   [Sep-06-17 10:37AM  Market Realist]
▶ [$$] Cubic Motion gets £20m boost for film and VR expansion   [Sep-04-17 12:05AM  Financial Times]
▶ Relative Strength? These 5 Top Stocks Absolutely Have It   [Aug-30-17 06:59AM  Investor's Business Daily]
▶ EA to Present at the Deutsche Bank Technology Conference   [Aug-29-17 04:05PM  Business Wire]
▶ Leaders Like Netflix Fuel T. Rowe Price Mutual Fund's Blistering Pace   [Aug-28-17 08:06AM  Investor's Business Daily]
▶ See Inside Europes Biggest Video Gaming Convention   [Aug-23-17 05:34PM  Fortune]
▶ Tough Reviews for Madden 18 Won't Sack EA Stock   [Aug-22-17 03:41PM  Barrons.com]
▶ NFL, Electronic Arts unveil Madden '18 competition   [Aug-21-17 05:14PM  Associated Press]
▶ EA Announces FE Coming Early 2018   [01:00PM  Business Wire]
Financial statements of EA
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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