MeritValue

ELECTRONIC ARTS INC.

EAdata completeness 75%19 fiscal years on file

Data notes: no data for concept 'capex'; no data for concept 'totalDebt'

The thesis, from the filings

ELECTRONIC ARTS INC. earns about 23% on invested capital, and has bought back 12% of its shares over 5 years. The applicable estimate puts fair value near $36.33 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$6.99B1$7.43B2$7.56B3$7.46B3$7.53B3
Net income$789M4$802M5$1.27B6$1.12B6$887M6
Operating cash flow$1.9B7$1.55B8$2.32B9$2.08B9$2.55B9
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents$2.73B10$2.42B11$2.9B11$2.14B11$2.86B11
Diluted shares286.0M278.0M272.0M264.0M253.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$267.35
your share of equity
Profit it earned you last year
$35.06
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $267.35 of net worth that earned you $35.06 last year.

iii. Is this a good business?
Moat signal · return on invested capital
23% avg · 5y
FY22 17%FY23 17%FY24 29%FY25 27%FY26 24%

It earned an average 23% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−12% shares · 5y

Share count is down 12% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$36.33
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$887M
  • growthAssumed0.0%
Graham Number
$45.95
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-03-31 · accession 0000712515-24-000023 (Revenues)
  2. 10-K · period ending 2023-03-31 · accession 0000712515-25-000022 (Revenues)
  3. 10-K · period ending 2024-03-31 · accession 0001628280-26-033617 (Revenues)
  4. 10-K · period ending 2022-03-31 · accession 0000712515-24-000023 (NetIncomeLoss)
  5. 10-K · period ending 2023-03-31 · accession 0000712515-25-000022 (NetIncomeLoss)
  6. 10-K · period ending 2024-03-31 · accession 0001628280-26-033617 (NetIncomeLoss)
  7. 10-K · period ending 2022-03-31 · accession 0000712515-24-000023 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-03-31 · accession 0000712515-25-000022 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-03-31 · accession 0001628280-26-033617 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-03-31 · accession 0000712515-22-000011 (CashAndCashEquivalentsAtCarryingValue)
  11. 10-K · period ending 2023-03-31 · accession 0001628280-26-033617 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)