| Company name | Electronic Arts Inc. |
| Stock ticker | EA |
| Live stock price | [stckqut]EA[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Fair |
| Sales growth | Poor |
| EPS growth | Good |
| P/E growth | Good |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $218.27 |
| Target stock price (averages with growth) | $280.59 |
| Target stock price (averages with no growth) | $190.59 |
| Target stock price (manual assumptions) | $206.05 |
The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/ea
Electronic Arts Inc., incorporated on May 8, 1991, 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. Its multi-player online service, Star Wars: The Old Republic, is available both as a free-to-download and as a subscription basis, and certain casual games, such as card, puzzle and word games are available through its Pogo online service. The Company’s packaged goods games are sold in mass market retailers, electronics specialty stores and game software specialty stores.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Electronic Arts Inc. as long as the indicators that I describe in my book The Confident Investor are favorable.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Electronic Arts Inc. calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $141.23
- Growth: 0.19
- Current EPS (TTM): $4.09
- P/E: 34
- Future EPS Calc: $9.76
- Future Stock Price Calc: $331.84
- Target stock price: $206.05
[/s2If]
I hope that this makes you a Confident Investor.