Company valuation Electronic Arts Inc.

  • Clemens Seidenstecher (Student)

Student thesis: Master's Thesis

Abstract

This thesis is aiming to evaluate Electronic Arts Inc and to determine a fair share price on 1st ofJanuary 2022 and issue a BUY, HOLD or SELL recommendation. Electronic Arts Inc is aleading company in the interactive media entertainment industry, commonly known as thevideo game industry.The valuation is based on a profound analysis of market and company and is using the mostappropriate valuation approach suggested by industry and academia. An intrinsic valuationusing the Discounted Cash Flow method is used as well as a relative valuation approach usingforward looking multiples.The issued recommendation of EA is BUY based on a fair share price of $152.77 on 1st January2022 which represents an average of intrinsic valuation and relative valuation. This results inan upside potential of 16% to the traded price of $131.9.
Date of Award29 Jun 2022
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorJosé Carlos Tudela Martins (Supervisor)

Designation

  • Mestrado em Finanças

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