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Autor:   •  September 14, 2015  •  Course Note  •  5,409 Words (22 Pages)  •  667 Views

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Electronic Arts - Enterprise Valuation

Yvan Kirassian*

Ha-Phong Nguyen*

Alexandre Pauli*

Valentin Pisa*

REPORT  I N F O

Due Date:

March 17 2015

Keywords:

Enterprise valuation

Equity value

APV method
WACC method

A B S T R A C T

In this assignment, we estimated the value of a commercial firm using publicly available accounting information. We computed both enterprise value and equity value. To perform the valuation, we used the historical financial data, and made our own assumptions in order to forecast the cash flows. We valued the company using both the WACC and APV method.



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Contents

List of Figures        

List of Tables        

Chapter 1        Business overview        

1.1        Enterprise presentation        

1.2        SWOT analysis        

1.3        Competitors        

Chapter 2        Inputs        

2.1        Historical FCFs        

2.2        Main forecasts        

Chapter 3        Weighted Average Cost of Capital        

3.1        The cost of equity rE        

3.2        The cost of debt rD        

3.3        Proportion of debt        

3.4        Determination of the WACC        

3.5        Valuation of Electronic Arts using WACC        

Chapter 4        Adjusted Present Value Method        

4.1        Value of the firm without leverage        

4.2        Valuing the interest tax shield        

4.3        Value of the levered firm        

Chapter 5        Electronic Arts valuation results        

5.1        Enterprise valuation results        

5.2        Sensitivity analysis        

Chapter 6        Conclusion        

Chapter 7        Bibliography        

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