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Electronic Arts (Electronic Arts) Cyclically Adjusted Price-to-FCF : 21.28 (As of Apr. 27, 2024)


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What is Electronic Arts Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Electronic Arts's current share price is $127.90. Electronic Arts's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $6.01. Electronic Arts's Cyclically Adjusted Price-to-FCF for today is 21.28.

The historical rank and industry rank for Electronic Arts's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

EA' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 20.51   Med: 36.36   Max: 78.86
Current: 21.29

During the past years, Electronic Arts's highest Cyclically Adjusted Price-to-FCF was 78.86. The lowest was 20.51. And the median was 36.36.

EA's Cyclically Adjusted Price-to-FCF is ranked better than
53.68% of 136 companies
in the Interactive Media industry
Industry Median: 21.87 vs EA: 21.29

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Electronic Arts's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $4.472. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $6.01 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Electronic Arts Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Electronic Arts's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Electronic Arts Cyclically Adjusted Price-to-FCF Chart

Electronic Arts Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.42 30.26 34.41 26.09 21.96

Electronic Arts Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.17 21.96 22.46 20.55 22.77

Competitive Comparison of Electronic Arts's Cyclically Adjusted Price-to-FCF

For the Electronic Gaming & Multimedia subindustry, Electronic Arts's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Electronic Arts's Cyclically Adjusted Price-to-FCF Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Electronic Arts's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Electronic Arts's Cyclically Adjusted Price-to-FCF falls into.



Electronic Arts Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Electronic Arts's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=127.90/6.01
=21.28

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Electronic Arts's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Electronic Arts's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=4.472/129.4194*129.4194
=4.472

Current CPI (Dec. 2023) = 129.4194.

Electronic Arts Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.773 99.695 1.003
201406 -0.071 100.560 -0.091
201409 0.503 100.428 0.648
201412 2.065 99.070 2.698
201503 0.497 99.621 0.646
201506 -0.284 100.684 -0.365
201509 -0.029 100.392 -0.037
201512 2.791 99.792 3.620
201603 1.894 100.470 2.440
201606 -0.502 101.688 -0.639
201609 0.309 101.861 0.393
201612 3.670 101.863 4.663
201703 1.299 102.862 1.634
201706 0.457 103.349 0.572
201709 0.071 104.136 0.088
201712 2.679 104.011 3.333
201803 1.907 105.290 2.344
201806 0.284 106.317 0.346
201809 -0.511 106.507 -0.621
201812 3.069 105.998 3.747
201903 1.861 107.251 2.246
201906 0.378 108.070 0.453
201909 0.034 108.329 0.041
201912 3.660 108.420 4.369
202003 1.568 108.902 1.863
202006 1.164 108.767 1.385
202009 0.123 109.815 0.145
202012 3.747 109.897 4.413
202103 1.164 111.754 1.348
202106 -0.647 114.631 -0.730
202109 0.073 115.734 0.082
202112 5.214 117.630 5.737
202203 1.377 121.301 1.469
202206 -0.488 125.017 -0.505
202209 -0.591 125.227 -0.611
202212 3.867 125.222 3.997
202303 2.073 127.348 2.107
202306 1.146 128.729 1.152
202309 0.224 129.860 0.223
202312 4.472 129.419 4.472

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Electronic Arts  (NAS:EA) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Electronic Arts Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Electronic Arts's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Electronic Arts (Electronic Arts) Business Description

Traded in Other Exchanges
Address
209 Redwood Shores Parkway, Redwood City, CA, USA, 94065
EA is one of the world's largest third-party video game publishers and has transitioned from a console-based video game publisher to the one of the largest publishers on consoles, PC, and mobile. The firm owns number of large franchises, including Madden, EA Sports FC, Battlefield, Apex Legends, Mass Effect, Dragon's Age, and Need for Speed.
Executives
Jacob J. Schatz officer: General Counsel & Corp Sect'y C/O ELECTRONIC ARTS INC., 209 REDWOOD SHORES PKWY, REDWOOD CITY CA 94061
Laura Miele officer: Chief Studios Officer 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Vijayanthimala Singh officer: Chief People Officer C/O ELECTRONIC ARTS INC., 209, REDWOOD CITY CA 94065
Andrew Wilson director, officer: Chief Executive Officer 209 REDWOOD SHORES PKWY, REDWOOD CITY CA 94065
Stuart Canfield officer: Chief Financial Officer 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Richard A Simonson director C/O SILVER SPRING NETWORKS, INC., 230 W. TASMAN DRIVE, SAN JOSE CA 95134
Luis A Ubinas director 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065-1175
Eric Charles Kelly officer: Chief Accounting Officer 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Chris Bruzzo officer: Chief Marketing Officer 411 FIRST AVE., SOUTH, SUITE 700, SEATTLE WA 98104
Kenneth A Moss officer: Chief Technology Officer 209 REDWOOD SHORES PKWY, REDWOOD CITY CA 94061
Chris Suh officer: Chief Financial Officer C/O CARDLYTICS, INC., 675 PONCE DE LEON AVE. NE, STE 6000, ATLANTA GA 30308
Blake J Jorgensen officer: COO & CFO 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Rachel A Gonzalez director 3150 SABRE DRIVE, SOUTHLAKE TX 76092
Kofi A Bruce director GENERAL MILLS, INC., ONE GENERAL MILLS BLVD., MINNEAPOLIS MN 55426
Jay C Hoag director 250 MIDDLEFIELD ROAD, MENLO PARK CA 94025

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