Electronic Arts Valuation
| EA Stock | USD 200.23 0.70 0.35% |
At this time, the firm appears to be fairly valued. Electronic Arts shows a prevailing Real Value of $203.03 per share. The current price of the firm is $200.23. Our model computes the value of Electronic Arts from reviewing the firm fundamentals such as Current Valuation of 48.98 B, profit margin of 0.09 %, and Shares Outstanding of 250.25 M as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Electronic Arts' valuation include:
Price Book 8.1166 | Enterprise Value | Enterprise Value Ebitda 35.3932 | Price Sales 6.8345 | Forward PE 21.7865 |
Fairly Valued
Today
Please note that Electronic Arts' price fluctuation is very steady at this time. Calculation of the real value of Electronic Arts is based on 3 months time horizon. Increasing Electronic Arts' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Electronic Arts is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Electronic Stock. However, Electronic Arts' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 200.23 | Real 203.03 | Target 205.59 | Hype 200.15 | Naive 200.33 |
The real value of Electronic Stock, also known as its intrinsic value, is the underlying worth of Electronic Arts Company, which is reflected in its stock price. It is based on Electronic Arts' financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Electronic Arts' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Electronic Arts helps investors to forecast how Electronic stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Electronic Arts more accurately as focusing exclusively on Electronic Arts' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Electronic Arts' intrinsic value based on its ongoing forecasts of Electronic Arts' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Electronic Arts' closest peers. If more than one evaluation category is relevant for Electronic Arts we suggest using both methods to arrive at a better estimate.
Electronic Arts Cash |
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Electronic Revenue by Product
Electronic Arts Total Value Analysis
Electronic Arts is currently forecasted to have takeover value of 48.98 B with market capitalization of 49.93 B, debt of 2.22 B, and cash on hands of 1.87 B. Please note that takeover value may be misleading and is a subject to accounting mistakes. We encourage investors to methodically examine all of the Electronic Arts fundamentals before making investment evaluation based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
48.98 B | 49.93 B | 2.22 B | 1.87 B |
Electronic Arts Investor Information
About 92.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.72. Electronic Arts last dividend was issued on the 25th of February 2026. The entity had 2:1 split on the 18th of November 2003. Based on the key indicators related to Electronic Arts' liquidity, profitability, solvency, and operating efficiency, Electronic Arts may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.19 | 0.18 |
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| Total Cash From Operating Activities | 2.5 B | 2.4 B |
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| Operating Income | 1.8 B | 1.7 B |
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Electronic Arts Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Electronic Arts has an asset utilization ratio of 60.34 percent. This suggests that the Company is making $0.6 for each dollar of assets. An increasing asset utilization means that Electronic Arts is more efficient with each dollar of assets it utilizes for everyday operations.Electronic Arts Profitability Analysis
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.Net Income | First Reported 1989-06-30 | Previous Quarter 137 M | Current Value 88 M | Quarterly Volatility 244.4 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.48 | 0.71 |
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| Net Profit Margin | 0.0735 | 0.14 |
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| Operating Profit Margin | 0.19 | 0.18 |
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| Pretax Profit Margin | 0.2 | 0.19 |
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| Return On Assets | 0.0845 | 0.1 |
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| Return On Equity | 0.13 | 0.2 |
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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 Earnings per Share Projection vs Actual
By analyzing Electronic Arts' earnings estimates, investors can diagnose different trends across Electronic Arts' analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for Electronic Arts is based on EPS before non-recurring items and includes expenses related to employee stock options.Electronic Arts Ownership Allocation
Electronic Arts holds a total of 250.25 Million outstanding shares. The majority of Electronic Arts outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Electronic Arts to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Electronic Arts. Please pay attention to any change in the institutional holdings of Electronic Arts as this could imply that something significant has changed or is about to change at the company. On November 14, 2025, Representative Ro Khanna of US Congress acquired under $15k worth of Electronic Arts's common stock.Electronic Arts Profitability Analysis
The company generated the yearly revenue of 7.46 B. Reported Net Income was 1.12 B with gross profit of 5.72 B.Electronic Arts Past Distributions to stockholders
| 23rd of December 2025 | ||
| 17th of September 2025 | ||
| 27th of August 2025 | ||
| 18th of June 2025 | ||
| 19th of March 2025 | ||
| 18th of December 2024 | ||
| 27th of November 2024 | ||
| 18th of September 2024 | ||
| 20th of March 2024 |
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Electronic Arts' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Electronic Arts and how it compares across the competition.
About Electronic Arts Valuation
The stock valuation mechanism determines Electronic Arts' current worth on a weekly basis. Our valuation model uses a comparative analysis of Electronic Arts. We calculate exposure to Electronic Arts's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Electronic Arts's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 6.8 B | 7.1 B | |
| Pretax Profit Margin | 0.19 | 0.20 | |
| Operating Profit Margin | 0.18 | 0.19 | |
| Net Profit Margin | 0.14 | 0.07 | |
| Gross Profit Margin | 0.71 | 0.48 |
A single share of Electronic Arts represents a small ownership stake in the entity. As a stockholder of Electronic, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Electronic Arts Dividends Analysis For Valuation
The current year's Dividends Paid is expected to grow to about (170.1 M). In addition to that, Dividend Yield is expected to decline to 0. At present, Electronic Arts' Retained Earnings are projected to increase significantly based on the last few years of reporting. The current year's Retained Earnings Total Equity is expected to grow to about 8.9 B, whereas Earnings Yield is forecasted to decline to 0.02.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -179.1 M | -170.1 M | |
| Dividend Payout Ratio | 0.16 | 0.11 | |
| Dividend Paid And Capex Coverage Ratio | 4.46 | 4.36 |
There are various types of dividends Electronic Arts can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Electronic shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Electronic Arts directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Electronic pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Electronic Arts by the value of the dividends paid out.
Electronic Arts Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 264 M | |
| Quarterly Earnings Growth Y O Y | -0.685 | |
| Forward Price Earnings | 21.7865 |
Electronic Arts Current Valuation Indicators
Valuation refers to the process of determining the present value of Electronic Arts and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Electronic we look at many different elements of the entity such as Electronic's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Electronic Arts, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Electronic Arts' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Electronic Arts' worth.Complementary 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.
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