Electronic Arts Inc (EA) is now in the Undervalued zone, suggesting that its current forward PE ratio of 20.76 is considered Undervalued compared with the five-year average of 18.79. The fair price of Electronic Arts Inc (EA) is between 354.16 to 378.42 according to relative valuation method. Compared to the current price of 201.06 USD , Electronic Arts Inc By Undervalued By 43.23%.

Relative Value

Fair Zone

354.16-378.42

Current Price：201.06

43.23%

Undervalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Electronic Arts Inc (EA) has a current Price-to-Book (P/B) ratio of 8.49. Compared to its 3-year average P/B ratio of 5.43, the current P/B ratio is approximately 56.56% higher. Relative to its 5-year average P/B ratio of 5.16, the current P/B ratio is about 64.64% higher. Electronic Arts Inc (EA) has a Forward Free Cash Flow (FCF) yield of approximately 3.24%. Compared to its 3-year average FCF yield of 4.90%, the current FCF yield is approximately -33.77% lower. Relative to its 5-year average FCF yield of 4.62%, the current FCF yield is about -29.85% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for EA competitors is 10.57, providing a benchmark for relative valuation. Electronic Arts Inc Corp (EA.O) exhibits a P/S ratio of --, which is -100% above the industry average. Given its robust revenue growth of 0.96%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of EA increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of EA in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is EA currently overvalued or undervalued?

What is Electronic Arts Inc (EA) fair value?

EA's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Electronic Arts Inc (EA) is between 354.16 to 378.42 according to relative valuation method.

How does EA's valuation metrics compare to the industry average?

The average P/S ratio for EA's competitors is 10.57, providing a benchmark for relative valuation. Electronic Arts Inc Corp (EA) exhibits a P/S ratio of --, which is -100.00% above the industry average. Given its robust revenue growth of 0.96%, this premium appears unsustainable.

What is the current P/B ratio for Electronic Arts Inc (EA) as of Mar 02 2026?

As of Mar 02 2026, Electronic Arts Inc (EA) has a P/B ratio of 8.49. This indicates that the market values EA at 8.49 times its book value.

What is the current FCF Yield for Electronic Arts Inc (EA) as of Mar 02 2026?

As of Mar 02 2026, Electronic Arts Inc (EA) has a FCF Yield of 3.24%. This means that for every dollar of Electronic Arts Inc's market capitalization, the company generates 3.24 cents in free cash flow.

What is the current Forward P/E ratio for Electronic Arts Inc (EA) as of Mar 02 2026?

As of Mar 02 2026, Electronic Arts Inc (EA) has a Forward P/E ratio of 20.76. This means the market is willing to pay $20.76 for every dollar of Electronic Arts Inc's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Electronic Arts Inc (EA) as of Mar 02 2026?

As of Mar 02 2026, Electronic Arts Inc (EA) has a Forward P/S ratio of 6.07. This means the market is valuing EA at $6.07 for every dollar of expected revenue over the next 12 months.

EA Valuation