Growing at an unbiased price.It's worth checking the price a business is paying as it announces a major acquisition. As Warren Buffett has said,"Price is what you pay, value is what you get." Across three hot valuation metrics, Glu Mobile seems just like a good value in the video FUT Coins game industry.EA is spending $12.50 a share in cash to Glu Mobile shareholders, which places the latter's price-to-free money flow multiple at 47.
On a forward price-to-earnings basis, Glu trades in a multiple of 25, that resembles a relatively good deal compared to its bigger peer Zynga, which trades in a greater forward P/E of 28. Glu is also a much better bargain on a price-to-sales basis with a multiple just below four, while Zynga trades at nearer to six times sales, up there with the industry's leading gaming stocks.
EA's earned cash to spare.EA entered calendar 2021 with lots of money to reinvest or obtain top-notch studios for example Glu to extend its dominance from the gambling market.The company made $1.9 billion in free cash flow during the last four quarters.
The Codemasters deal is expected to close this month, while Glu Mobile must shut throughout the June-ending quarter. Even after these two deals are full, EA will still have Cheap FIFA Coins a few billion bucks' worth of money on the balance sheet with nearly $2 billion in free cash flow coming from every year.The inclusion of Glu Mobile will jumpstart EA's growth in a cell market that climbed an estimated 25 percent this past year, reaching $86 billion in global revenue, according to Newzoo.In short, this purchase is a major update for Digital Arts' mobile game industry, and that's why the inventory jumped to a new top on the information.