Electronic Arts Shares Owned By Institutions vs. Price To Book

EA Stock  USD 129.40  0.42  0.32%   
Based on Electronic Arts' profitability indicators, Electronic Arts' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Electronic Arts' ability to earn profits and add value for shareholders. At present, Electronic Arts' Days Sales Outstanding is projected to slightly decrease based on the last few years of reporting. The current year's Sales General And Administrative To Revenue is expected to grow to 0.15, whereas Price To Sales Ratio is forecasted to decline to 3.04. At present, Electronic Arts' Operating Income is projected to increase significantly based on the last few years of reporting. The current year's Income Before Tax is expected to grow to about 1.9 B, whereas Accumulated Other Comprehensive Income is projected to grow to (61.6 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.480.7
Way Down
Slightly volatile
Net Profit Margin0.160.15
Notably Up
Slightly volatile
Operating Profit Margin0.190.18
Notably Up
Slightly volatile
Pretax Profit Margin0.20.19
Notably Up
Slightly volatile
Return On Assets0.0840.11
Way Down
Pretty Stable
Return On Equity0.130.19
Way Down
Very volatile
For Electronic Arts profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Electronic Arts to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Electronic Arts utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Electronic Arts's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Electronic Arts over time as well as its relative position and ranking within its peers.
  

Electronic Arts' Revenue Breakdown by Earning Segment

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Is Interactive Home Entertainment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Electronic Arts. If investors know Electronic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Electronic Arts listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.037
Dividend Share
0.76
Earnings Share
3.93
Revenue Per Share
27.751
Quarterly Revenue Growth
(0.03)
The market value of Electronic Arts is measured differently than its book value, which is the value of Electronic that is recorded on the company's balance sheet. Investors also form their own opinion of Electronic Arts' value that differs from its market value or its book value, called intrinsic value, which is Electronic Arts' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Electronic Arts' market value can be influenced by many factors that don't directly affect Electronic Arts' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Electronic Arts' value and its price as these two are different measures arrived at by different means. Investors typically determine if Electronic Arts is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Electronic Arts' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Electronic Arts Price To Book vs. Shares Owned By Institutions Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Electronic Arts's current stock value. Our valuation model uses many indicators to compare Electronic Arts value to that of its competitors to determine the firm's financial worth.
Electronic Arts is one of the top stocks in shares owned by institutions category among its peers. It is rated below average in price to book category among its peers fabricating about  0.05  of Price To Book per Shares Owned By Institutions. The ratio of Shares Owned By Institutions to Price To Book for Electronic Arts is roughly  21.92 . As of February 16, 2025, Price To Book Ratio is expected to decline to 5.42. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Electronic Arts' earnings, one of the primary drivers of an investment's value.

Electronic Arts' Earnings Breakdown by Geography

Electronic Price To Book vs. Shares Owned By Institutions

Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.

Electronic Arts

Shares Held by Institutions

 = 

Funds and Banks

+

Firms

 = 
99.72 %
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Electronic Arts

P/B

 = 

MV Per Share

BV Per Share

 = 
4.55 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.

Electronic Price To Book Comparison

Electronic Arts is currently under evaluation in price to book category among its peers.

Electronic Arts Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Electronic Arts, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Electronic Arts will eventually generate negative long term returns. The profitability progress is the general direction of Electronic Arts' change in net profit over the period of time. It can combine multiple indicators of Electronic Arts, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-64.8 M-61.6 M
Operating Income1.7 B1.8 B
Income Before Tax1.8 B1.9 B
Total Other Income Expense Net81.7 M85.7 M
Net Income1.5 B1.5 B
Income Tax Expense363.4 M381.6 M
Net Income Applicable To Common Shares922.3 M612.1 M
Net Income From Continuing Ops1.5 B808.8 M
Non Operating Income Net Other-6.9 M-6.6 M
Interest Income144.9 M152.1 M
Net Interest Income78.2 M82.1 M
Change To Netincome294.3 M309 M
Net Income Per Share 4.24  4.46 
Income Quality 1.64  1.72 
Net Income Per E B T 0.72  0.73 

Electronic Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Electronic Arts. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Electronic Arts position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Electronic Arts' important profitability drivers and their relationship over time.

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Use Investing Themes to Complement your Electronic Arts position

In addition to having Electronic Arts in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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To fully project Electronic Arts' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Electronic Arts at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Electronic Arts' income statement, its balance sheet, and the statement of cash flows.
Potential Electronic Arts investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Electronic Arts investors may work on each financial statement separately, they are all related. The changes in Electronic Arts's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Electronic Arts's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.