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 20.64 is considered Undervalued compared with the five-year average of 19.01. The fair price of Electronic Arts Inc (EA) is between 238.92 to 269.31 according to relative valuation methord. Compared to the current price of 203.21 USD , Electronic Arts Inc is Undervalued By 14.95%.
Relative Value
Fair Zone
238.92-269.31
Current Price：203.21
14.95%
Undervalued
20.66
PE
1Y
3Y
5Y
Trailing
Forward
15.56
EV/EBITDA
Electronic Arts Inc. (EA) has a current EV/EBITDA of 15.56. The 5-year average EV/EBITDA is 13.36. The thresholds are as follows: Strongly Undervalued below 10.70, Undervalued between 10.70 and 12.03, Fairly Valued between 14.68 and 12.03, Overvalued between 14.68 and 16.01, and Strongly Overvalued above 16.01. The current Forward EV/EBITDA of 15.56 falls within the Overvalued range.
16.53
EV/EBIT
Electronic Arts Inc. (EA) has a current EV/EBIT of 16.53. The 5-year average EV/EBIT is 14.99. The thresholds are as follows: Strongly Undervalued below 12.44, Undervalued between 12.44 and 13.72, Fairly Valued between 16.26 and 13.72, Overvalued between 16.26 and 17.53, and Strongly Overvalued above 17.53. The current Forward EV/EBIT of 16.53 falls within the Overvalued range.
6.03
PS
Electronic Arts Inc. (EA) has a current PS of 6.03. The 5-year average PS is 4.93. The thresholds are as follows: Strongly Undervalued below 3.84, Undervalued between 3.84 and 4.38, Fairly Valued between 5.47 and 4.38, Overvalued between 5.47 and 6.02, and Strongly Overvalued above 6.02. The current Forward PS of 6.03 falls within the Strongly Overvalued range.
17.81
P/OCF
Electronic Arts Inc. (EA) has a current P/OCF of 17.81. The 5-year average P/OCF is 18.11. The thresholds are as follows: Strongly Undervalued below 12.51, Undervalued between 12.51 and 15.31, Fairly Valued between 20.91 and 15.31, Overvalued between 20.91 and 23.71, and Strongly Overvalued above 23.71. The current Forward P/OCF of 17.81 falls within the Historic Trend Line -Fairly Valued range.
22.56
P/FCF
Electronic Arts Inc. (EA) has a current P/FCF of 22.56. The 5-year average P/FCF is 19.69. The thresholds are as follows: Strongly Undervalued below 12.45, Undervalued between 12.45 and 16.07, Fairly Valued between 23.31 and 16.07, Overvalued between 23.31 and 26.93, and Strongly Overvalued above 26.93. The current Forward P/FCF of 22.56 falls within the Historic Trend Line -Fairly Valued range.
Electronic Arts Inc (EA) has a current Price-to-Book (P/B) ratio of 8.44. Compared to its 3-year average P/B ratio of 5.26 , the current P/B ratio is approximately 60.62% higher. Relative to its 5-year average P/B ratio of 5.10, the current P/B ratio is about 65.48% higher. Electronic Arts Inc (EA) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.86%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.65% , the current FCF yield is about -100.00% lower.
8.45
P/B
Median3y
5.26
Median5y
5.10
3.26
FCF Yield
Median3y
4.86
Median5y
4.65
Competitors Valuation Multiple
The average P/S ratio for EA's competitors is , providing a benchmark for relative valuation. Electronic Arts Inc Corp (EA) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -9.19%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of EA increased by 39.06% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 29.93 to 58.95.
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.
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