TGM's two-stage DCF values Electronic Arts Inc. (EA) between $141.44 and $270.37 depending on assumptions, with a base case of $191.06. 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?
$209.06 is justified only if free cash flow grows about +7.8% a year (fading to 2.5% long-run) at a 7.5% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 2.6%/yr | 8.5% | $141.44 |
| Base case | 5.6%/yr | 7.5% | $191.06 |
| Optimistic | 8.6%/yr | 6.5% | $270.37 |
| Third-party model estimate (FMP) | independent reference · retrieved Jul 26, 2026 · assumptions not provided | $116.82 | |
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
$209.06
Market-Implied Growth
+7.8%/yr
vs +5.1% 5Y actual
Model Scenario Range
$141.44 – $270.37
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
$191.06
-8.6% vs $209.06
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.6%/yr FCF growth and 10-year horizon fixed. Green = above today's $209.06; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $246 | $277 | $317 | $373 | $457 |
| 6.5% | $198 | $216 | $238 | $267 | $306 |
| 7.5% | $165 | $177 | $191 | $208 | $230 |
| 8.5% | $142 | $150 | $160 | $171 | $185 |
| 9.5% | $124 | $130 | $137 | $145 | $155 |
