EA PE Ratio & Valuation,Is EA Overvalued

EA Relative Valuation

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. If the market price exceeds this fair value range, EA is overvalued; if below, it's undervalued.

Historical Valuation

Electronic Arts Inc (EA) is now in the Undervalued zone, suggesting that its current forward PE ratio of 20.70 is considered Undervalued compared with the five-year average of 18.99. The fair price of Electronic Arts Inc (EA) is between 236.34 to 266.19 according to relative valuation methord. Compared to the current price of 203.73 USD , Electronic Arts Inc is Undervalued By 13.8%.

Relative Value

Fair Zone

236.34-266.19

Current Price：203.73

13.8%

Undervalued

20.70

15.60

EV/EBITDA

Electronic Arts Inc. (EA) has a current EV/EBITDA of 15.60. The 5-year average EV/EBITDA is 13.36. The thresholds are as follows: Strongly Undervalued below 10.71, Undervalued between 10.71 and 12.03, Fairly Valued between 14.68 and 12.03, Overvalued between 14.68 and 16.00, and Strongly Overvalued above 16.00. The current Forward EV/EBITDA of 15.60 falls within the Overvalued range.

16.57

EV/EBIT

Electronic Arts Inc. (EA) has a current EV/EBIT of 16.57. The 5-year average EV/EBIT is 14.99. The thresholds are as follows: Strongly Undervalued below 12.45, Undervalued between 12.45 and 13.72, Fairly Valued between 16.25 and 13.72, Overvalued between 16.25 and 17.52, and Strongly Overvalued above 17.52. The current Forward EV/EBIT of 16.57 falls within the Overvalued range.

6.05

Electronic Arts Inc. (EA) has a current PS of 6.05. The 5-year average PS is 4.93. The thresholds are as follows: Strongly Undervalued below 3.84, Undervalued between 3.84 and 4.39, Fairly Valued between 5.47 and 4.39, Overvalued between 5.47 and 6.01, and Strongly Overvalued above 6.01. The current Forward PS of 6.05 falls within the Strongly Overvalued range.

17.85

P/OCF

Electronic Arts Inc. (EA) has a current P/OCF of 17.85. The 5-year average P/OCF is 18.09. The thresholds are as follows: Strongly Undervalued below 12.52, Undervalued between 12.52 and 15.31, Fairly Valued between 20.88 and 15.31, Overvalued between 20.88 and 23.66, and Strongly Overvalued above 23.66. The current Forward P/OCF of 17.85 falls within the Historic Trend Line -Fairly Valued range.

22.62

P/FCF

Electronic Arts Inc. (EA) has a current P/FCF of 22.62. The 5-year average P/FCF is 19.71. The thresholds are as follows: Strongly Undervalued below 12.46, Undervalued between 12.46 and 16.09, Fairly Valued between 23.33 and 16.09, Overvalued between 23.33 and 26.96, and Strongly Overvalued above 26.96. The current Forward P/FCF of 22.62 falls within the Historic Trend Line -Fairly Valued range.

Electronic Arts Inc (EA) has a current Price-to-Book (P/B) ratio of 8.47. Compared to its 3-year average P/B ratio of 5.30 , the current P/B ratio is approximately 59.84% higher. Relative to its 5-year average P/B ratio of 5.12, the current P/B ratio is about 65.25% higher. Electronic Arts Inc (EA) has a Forward Free Cash Flow (FCF) yield of approximately 3.25%. Compared to its 3-year average FCF yield of 4.85%, the current FCF yield is approximately -32.91% lower. Relative to its 5-year average FCF yield of 4.64% , the current FCF yield is about -29.87% lower.

8.47

P/B

Median3y

5.30

Median5y

5.12

3.25

FCF Yield

Median3y

4.85

Median5y

4.64

Competitors Valuation Multiple

The average P/S ratio for EA's competitors is 17.20, providing a benchmark for relative valuation. Electronic Arts Inc Corp (EA) exhibits a P/S ratio of 6.05, which is -64.82% above the industry average. Given its robust revenue growth of -9.19%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of EA increased by 39.25% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 29.95 to 59.04.

The secondary factor is the Revenue Growth, contributed -9.19%to the performance.

Overall, the performance of EA in the past 1 year is driven by P/E Change. Which is more unsustainable.

-9.19%

2.03B → 1.84B

Revenue Growth

-48.69%

14.52 → 7.45

Margin Expansion

97.13%

29.95 → 59.04

P/E Change

39.25%

146.30 → 203.73

Mkt Cap Growth

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Frequently Asked Questions

Is Electronic Arts Inc (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 236.34 to 266.19 according to relative valuation methord.

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

What is the current P/B ratio for Electronic Arts Inc (EA) as of Dec 15 2025?

As of Dec 15 2025, Electronic Arts Inc (EA) has a P/B ratio of 8.47. This indicates that the market values EA at 8.47 times its book value.

What is the current FCF Yield for Electronic Arts Inc (EA) as of Dec 15 2025?

As of Dec 15 2025, Electronic Arts Inc (EA) has a FCF Yield of 3.25%. This means that for every dollar of Electronic Arts Inc’s market capitalization, the company generates 3.25 cents in free cash flow.

What is the current Forward P/E ratio for Electronic Arts Inc (EA) as of Dec 15 2025?

As of Dec 15 2025, Electronic Arts Inc (EA) has a Forward P/E ratio of 20.70. This means the market is willing to pay $20.70 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 Dec 15 2025?

As of Dec 15 2025, Electronic Arts Inc (EA) has a Forward P/S ratio of 6.05. This means the market is valuing EA at $6.05 for every dollar of expected revenue over the next 12 months.

EA Valuation