Electronic Arts Inc. (EA)

Industry: Electronic Gaming & Multimedia Model: Peers Multiples Valuation

Valuation Snapshot

Ticker	Rank	Name	Rev TTM (M)	Trailing P/E	Forward P/E	Trailing EV/EBITDA	Forward EV/EBITDA	Trailing EV/EBIT	Forward EV/EBIT
0Q0C.L	1	Toshiba Corporatio	20,968	-	-	16.61	18.14	-	36.73
9999.HK	2	NetEase, Inc.	15,872	16.91	14.01	15.19	13.07	17.80	13.51
SNAL	3	Snail, Inc. Class	13,888	-	-	-	-	-	-
ATVI	4	Activision Blizzar	8,706	30.60	22.88	20.83	20.47	25.34	24.43
0799.HK	5	IGG Inc	8,693	3.79	3.44	1.58	1.39	1.70	1.55
EA	6	Electronic Arts In	7,288	56.98	61.66	31.18	31.04	60.72	41.35
TTWO	7	Take-Two Interacti	6,220	-	-	-	-	-	-
RBLX	8	Roblox Corporation	4,464	-	-	-	-	-	-
9626.HK	9	Bilibili Inc.	4,224	111.32	111.32	93.01	93.01	58.85	111.54
9766.T	10	Konami Group Corpo	2,970	34.14	25.17	17.47	14.23	18.21	16.45
ZNGA	11	Zynga Inc.	2,811	-	-	38.07	38.07	14,170.46	215.52
3659.T	12	NEXON Co., Ltd.	2,770	22.87	21.81	9.97	9.08	15.06	18.53
HPY	13	Heartland Payment	2,682	41.01	34.30	14.13	11.85	27.98	21.30
6460.T	14	Sega Sammy Holding	2,603	42.98	37.58	17.56	17.22	-	24.57
002555.SZ	15	37 Interactive Ent	2,351	15.30	15.00	14.04	13.84	12.45	13.55
259960.KS	16	KRAFTON, Inc.	1,946	17.35	15.51	7.79	6.37	17.26	12.33

Line Item	Trailing P/E	Forward P/E	Trailing EV/EBITDA	Forward EV/EBITDA	Trailing EV/EBIT	Forward EV/EBIT
Winsorized Median Multiple	22.87	21.81	14.66	13.46	17.80	17.49
Full Range Median Multiple	26.74	22.34	15.90	14.04	18.01	19.92
Industry Multiple	33.63	30.10	22.19	21.39	1,436.51	42.50
Market Implied Multiple	57.70	62.44	31.57	31.43	61.48	41.87
Company (EA) Multiple	56.98	61.66	31.18	31.04	60.72	41.35
(*) Net Income / EBITDA / Revenue	885	818	1,628	1,635	836	1,228
Winsorized Enterprise Value	N/A	N/A	23,868	22,004	14,881	21,472
Full Range Median Enterprise Value	N/A	N/A	25,884	22,954	15,053	24,446
(-) Net Debt	337	337	337	337	337	337
Winsorized Equity Value	20,237	17,831	23,531	21,667	14,544	21,135
Full Range Median Equity Value	23,661	18,272	25,547	22,617	14,716	24,109
(/) Shares Outstanding	250	250	250	250	250	250
Winsorized Fair Value	$80.95	$71.32	$94.12	$86.67	$58.18	$84.54
Full Range Median Fair Value	$94.64	$73.09	$102.19	$90.47	$58.87	$96.44
Current Price	$204.25	$204.25	$204.25	$204.25	$204.25	$204.25
Upside / Downside	-60.37%	-65.08%	-53.92%	-57.57%	-71.52%	-58.61%
Safety Margin	30.0%	30.0%	30.0%	30.0%	30.0%	30.0%
Buy Price	$56.66	$49.93	$65.89	$60.67	$40.72	$59.18
Buy / Don't Buy	Don’t Buy	Don’t Buy	Don’t Buy	Don’t Buy	Don’t Buy	Don’t Buy