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Electronic Arts (BSP:EAIN34) Cyclically Adjusted Price-to-FCF : 22.12 (As of Jun. 03, 2024)


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

As of today (2024-06-03), Electronic Arts's current share price is R$344.68. Electronic Arts's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was R$15.58. Electronic Arts's Cyclically Adjusted Price-to-FCF for today is 22.12.

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

BSP:EAIN34' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 20.47   Med: 36.36   Max: 78.86
Current: 21.4

During the past years, Electronic Arts's highest Cyclically Adjusted Price-to-FCF was 78.86. The lowest was 20.47. And the median was 36.36.

BSP:EAIN34's Cyclically Adjusted Price-to-FCF is ranked better than
50.74% of 136 companies
in the Interactive Media industry
Industry Median: 21.945 vs BSP:EAIN34: 21.40

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 Mar. 2024 was R$4.842. 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 R$15.58 for the trailing ten years ended in Mar. 2024.

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 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.26 34.41 26.09 21.96 21.37

Electronic Arts Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 21.96 22.46 20.55 22.77 21.37

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
=344.68/15.58
=22.12

* 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 Mar. 2024 is calculated as:

For example, Electronic Arts's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=4.842/131.7762*131.7762
=4.842

Current CPI (Mar. 2024) = 131.7762.

Electronic Arts Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 -0.080 100.560 -0.105
201409 0.588 100.428 0.772
201412 2.728 99.070 3.629
201503 0.781 99.621 1.033
201506 -0.441 100.684 -0.577
201509 -0.056 100.392 -0.074
201512 5.416 99.792 7.152
201603 3.502 100.470 4.593
201606 -0.859 101.688 -1.113
201609 0.503 101.861 0.651
201612 6.155 101.863 7.963
201703 2.032 102.862 2.603
201706 0.753 103.349 0.960
201709 0.112 104.136 0.142
201712 4.413 104.011 5.591
201803 3.127 105.290 3.914
201806 0.535 106.317 0.663
201809 -1.051 106.507 -1.300
201812 5.959 105.998 7.408
201903 3.575 107.251 4.393
201906 0.729 108.070 0.889
201909 0.070 108.329 0.085
201912 7.511 108.420 9.129
202003 3.832 108.902 4.637
202006 3.021 108.767 3.660
202009 0.332 109.815 0.398
202012 9.638 109.897 11.557
202103 3.281 111.754 3.869
202106 -1.627 114.631 -1.870
202109 0.193 115.734 0.220
202112 14.742 117.630 16.515
202203 3.426 121.301 3.722
202206 -1.230 125.017 -1.297
202209 -1.551 125.227 -1.632
202212 10.142 125.222 10.673
202303 5.398 127.348 5.586
202306 2.781 128.729 2.847
202309 0.554 129.860 0.562
202312 10.957 129.419 11.157
202403 4.842 131.776 4.842

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  (BSP:EAIN34) 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 (BSP:EAIN34) 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.

Electronic Arts (BSP:EAIN34) Headlines

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