TGM's two-stage DCF values Electronic Arts Inc. (EA) between $156.12 and $299.50 depending on assumptions, with a base case of $211.29. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (7.5%) reflects its beta.
What would today's price require?
$209.70 is justified only if free cash flow grows about +8.0% a year (fading to 2.5% long-run) at a 7.5% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 5.2%/yr | 8.5% | $156.12 |
| Base case | 8.2%/yr | 7.5% | $211.29 |
| Optimistic | 11.2%/yr | 6.5% | $299.50 |
| Third-party model estimate (FMP) | independent reference · retrieved Sep 8, 2026 · assumptions not provided | $119.21 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$209.70
Market-Implied Growth
+8.0%/yr
vs +9.9% 5Y actual
Model Scenario Range
$156.12 – $299.50
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for EA (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $2.0B · 0.25B shares · net cash $1.4B
Estimated Fair Value
$211.29
+0.8% vs $209.70
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 8.2%/yr FCF growth and 10-year horizon fixed. Green = above today's $209.70; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $274 | $307 | $352 | $415 | $510 |
| 6.5% | $219 | $239 | $264 | $297 | $340 |
| 7.5% | $182 | $195 | $211 | $231 | $255 |
| 8.5% | $156 | $165 | $176 | $189 | $204 |
| 9.5% | $136 | $143 | $151 | $160 | $171 |
