Electronic Arts Price To Sales vs. Net Income
| ERT Stock | 155.14 0.24 0.15% |
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 |
Electronic Arts Net Income vs. Price To Sales 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 price to sales category among its peers. It also is one of the top stocks in net income category among its peers making up about 164,104,911 of Net Income per Price To Sales. 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 Net Income vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Electronic Arts |
| = | 4.81 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Electronic Arts |
| = | 789 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Electronic Net Income Comparison
Electronic Arts is currently under evaluation in net income category among its peers.
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.
Use Electronic Arts in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Electronic Arts position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Electronic Arts will appreciate offsetting losses from the drop in the long position's value.Electronic Arts Pair Trading
Electronic Arts Pair Trading Analysis
The ability to find closely correlated positions to Electronic Arts could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Electronic Arts when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Electronic Arts - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Electronic Arts to buy it.
The correlation of Electronic Arts is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Electronic Arts moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Electronic Arts moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Electronic Arts can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.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.Did You Try This Idea?
Run Gold ETFs Thematic Idea Now
Gold ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Gold ETFs theme has 19 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Gold ETFs Theme or any other thematic opportunities.
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Additional Tools for Electronic Stock Analysis
When running Electronic Arts' price analysis, check to measure Electronic Arts' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Electronic Arts is operating at the current time. Most of Electronic Arts' value examination focuses on studying past and present price action to predict the probability of Electronic Arts' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Electronic Arts' price. Additionally, you may evaluate how the addition of Electronic Arts to your portfolios can decrease your overall portfolio volatility.