Historical Valuation
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 18.92. The fair price of Electronic Arts Inc (EA) is between 235.06 to 262.64 according to relative valuation methord. Compared to the current price of 204.22 USD , Electronic Arts Inc is Undervalued By 13.12%.
Relative Value
Fair Zone
235.06-262.64
Current Price：204.22
13.12%
Undervalued
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
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 5.37 , the current P/B ratio is approximately 58.14% higher. Relative to its 5-year average P/B ratio of 5.16, the current P/B ratio is about 64.63% 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 4.83%, the current FCF yield is approximately -32.90% lower. Relative to its 5-year average FCF yield of 4.62% , the current FCF yield is about -29.87% lower.
P/B
Median3y
5.37
Median5y
5.16
FCF Yield
Median3y
4.83
Median5y
4.62
Competitors Valuation Multiple
AI Analysis for EA
The average P/S ratio for EA competitors is 18.51, providing a benchmark for relative valuation. Electronic Arts Inc Corp (EA.O) exhibits a P/S ratio of 6.07, which is -67.21% above the industry average. Given its robust revenue growth of -9.19%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for EA
1Y
3Y
5Y
Market capitalization of EA increased by 0.00% over the past 1 year. 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 is driven by Unknown.
People Also Watch
Frequently Asked Questions
Is EA currently overvalued or undervalued?
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 18.92. The fair price of Electronic Arts Inc (EA) is between 235.06 to 262.64 according to relative valuation methord. Compared to the current price of 204.22 USD , Electronic Arts Inc is Undervalued By 13.12% .
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 235.06 to 262.64 according to relative valuation methord.
How does EA's valuation metrics compare to the industry average?
The average P/S ratio for EA's competitors is 18.51, providing a benchmark for relative valuation. Electronic Arts Inc Corp (EA) exhibits a P/S ratio of 6.07, which is -67.21% above the industry average. Given its robust revenue growth of -9.19%, this premium appears unsustainable.
What is the current P/B ratio for Electronic Arts Inc (EA) as of Jan 10 2026?
As of Jan 10 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 Jan 10 2026?
As of Jan 10 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 Jan 10 2026?
As of Jan 10 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 Jan 10 2026?
As of Jan 10 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.