Electronic Arts DCF Stock Analysis. Buy or Sell?

Electronic Arts DCF Stock Analysis.

In partnership with

Your career will thank you.

Over 4 million professionals start their day with Morning Brew—because business news doesn’t have to be boring.

Each daily email breaks down the biggest stories in business, tech, and finance with clarity, wit, and relevance—so you're not just informed, you're actually interested.

Whether you’re leading meetings or just trying to keep up, Morning Brew helps you talk the talk without digging through social media or jargon-packed articles. And odds are, it’s already sitting in your coworker’s inbox—so you’ll have plenty to chat about.

It’s 100% free and takes less than 15 seconds to sign up, so try it today and see how Morning Brew is transforming business media for the better.

Electronic Arts’ DCF Stock Analysis

Here’s my assumptions for $EA ( ▼ 0.15% ) :

Risk Free Rate (10 Years Interest Rate Swap): 4.0051%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 3%

Historical Data

Revenue growth in the last 10 years (CAGR): 5.4%

Earnings growth in the last 10 years (CAGR): -0.31%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 4.25%

Future Assumptions

End of Year FCF growth: 3%

Growth until end of 2026: 5%

Growth until end of 2034: 4%

Perpetual growth: 3%

Net Debt: -0.03B

Outstanding Stock Options Present Value Assumption: $0.5B

Restricted Stock Units Present Value Assumption: $1.443B

Stock Valuation based on these assumptions: $277

Last update 06/30/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Electronic Arts (EA) and I don’t plan to add a position in the coming days.