How does an 8088 microprocessor generate physical address?

8086 has memory divided into segments.
Each segment has its particular register like ES, DS, SS, CD (extra segment, data segment, stack segment and code segment).
These registers hold the base address BA.

Now, there two base registers(BX and BP) and two index registers(SI and DI) in 8086. These registers hols the effective address EA.

Now Physical address PA is sum of EA and BA.

That is,

PA = BA+EA