With many analysts believing that EA will report double-digit sales growth, it will be unlikely to see small sales growth in the near future: Besides, FCF/Sales are expected to be equal to 29%-28% in the same time period. Most analysts are expecting sales growth to be equal to 18%-7% from 2021 to 2024. Market estimates are also quite optimistic. The fact that the company’s net debt is negative will most likely be appreciated by investors: The company’s financial position is also very solid with an asset/liability ratio of 2x and senior notes worth $1.87 billion. With this cash in hand, the management will be able to invest in marketing and product design, which will most likely enhance sales growth: Source: Presentation Solid Balance Sheet With Beneficial Market Estimates For 2022-2024Īs of June 30, 2021, EA reports a significant amount of cash, $2.8 billion, with short-term investments worth $881 million. Obviously, net revenue and CFO are also expected to increase significantly in the next two years:
FIFA ONLINE 4 PRICE FULL
The company expects an increase in the life services business segment as well as the full game segment. Notice that the company expects net bookings to increase by 37% from 2020 to 2022. With a portfolio of assets worth $12 billion, the most exciting is not the current amount of assets, but the expected growth delivered by the management. The image below offers more information on the matter: Fifa, Sims, Battlefield, and Madden are among EA’s successful digital assets.
With that, I would like to mention some of the games because millennial readers would most likely remember them. I can’t really go through all the assets owned and currently being developed by EA.
Source: Electronic Arts Home Page - Official EA Site EA's Expected Growthįounded in 1982, Electronic Arts develops games, content, and digital services for consoles, PCs, mobile phones, and tablets: In any case, like many other analysts, I believe that the company is a buy at its current market price of $124-$130. However, with new acquisitions and effective integration of Glu Mobile and Codemasters, I would be expecting the share price to trend north, up to $255. If Electronic Arts ( NASDAQ: EA) continues to sell FIFA as the company did in the past, I believe that EA’s share price is likely to be worth $174-$175.
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