Electronic Arts
-26%
est. 2Y upside i
Rank
#2875
Sector
Video Games / Interactive Entertainment
Est. Liquidity
~2Y
Data Quality
Data: MediumElectronics Arts offers limited upside over 2 years given ~1% revenue growth, a high entry multiple (7.3x), and significant competitive threats from Microsoft and Sony.
Last updated: July 3, 2026
EA sustains live services strength and expands IP, supporting a forward multiple of 7.5x on flat revenue of $7.63B, implying exit value $57.23B.
Multiple converges to public comps at 6x on $7.63B revenue, yielding $45.79B exit value, a 16.7% decline from entry.
Multiple compresses to 4x due to competition and regulatory overhang; exit value $30.52B, a 44.5% loss. Preference stack not quantified due to missing total funding.
Preference Stack Risk
moderateFunding Intensity
0%Total funding data missing; LBO implies debt overhang but not quantified.
Dilution Risk
lowNo equity raise expected given profitability and LBO structure.
Secondary Liquidity
moderateSecondary implied value of $51.6B suggests some market for shares, but liquidity may be limited until LBO closes.
Questions to Ask at the Interview
Strategic questions based on Electronic Arts's data — designed to show you've done your homework.
- 1
“How would EA defend its market share against Microsoft's Game Pass?”
- 2
“What is the strategy to grow subscription revenue beyond live services?”
- 3
“What is the expected liquidity timeline for employee equity given the pending LBO?”
Community
Valuation Sentiment
Our model estimates -26% upside. What do you think?
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Disclaimer: This analysis is AI-generated and does not constitute financial or career advice. Always conduct your own due diligence.