EA

Electronic Arts Inc.

Fundamental data last updated:July 3, 2026

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company profile

SECTOR

Technology

industry

Electronic Gaming & Multimedia

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

08/04/2026

Business Summary

Electronic Arts Inc., established in 1982 and based in Redwood City, California, is a global leader in the creation, promotion, publication, and distribution of interactive entertainment. The company delivers a wide array of games, content, and services for various platforms, including gaming consoles, personal computers, smartphones, and tablets across the globe. EA develops and releases titles spanning popular genres such as sports, racing, first-person shooters, action, role-playing, and simulation. Its prominent proprietary franchises include Battlefield, The Sims, Apex Legends, and Need for Speed, alongside celebrated licensed properties like FIFA, Madden NFL, UFC, and Star Wars. Furthermore, Electronic Arts grants licenses for its games to external partners for distribution and hosting. The company reaches its customers through diverse channels, encompassing digital storefronts, traditional retail outlets, direct sales to major retailers and specialty shops, and various distribution agreements.

 


Analyze EA on TradingView

VALUATION

P/E

57.84

Market Cap ($M USD)

$51.46B

Forward P/E

14.27

PEG

0.05

PRICE TO SALES

6.83

PRICE TO BOOK

7.58

EV / EBITDA

33.67

5-Year Average P/E

Free Cash Flow Yield

4.51%

DCF Value

$123.30

Graham Number

$46.47

Price to FCF

22.15

EV to FCF

21.58

Earnings Yield

1.73%

FCF Yield

4.51%

DIVIDEND

Yield

0.37%

Annual Payout

$0.76

Payout Ratio

21.53%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$3.55

Next Year EPS Growth Estimate

$14.38

Next Year Revenue Growth Estimate

$1.05T

Return on Equity (ROE)

14.19%

FREE CASH FLOW

Operating Margin

15.43%

Debt-to-Equity

0.23

Piotroski F-Score

8

Altman Z-Score

6.44

Return on Invested Capital (ROIC)

12.45%

Current Ratio

1.05

Quick Ratio

1.05

Net Debt to EBITDA

-0.88

Interest Coverage

0.00

Gross Profit margin

78.99%

FCF PER SHARE

$9.29

REVENUE PER SHARE

$30.12

Analyze EA on TradingView

Gainseekers Quantitative Analysis

Summary

The market appears to be mispricing Electronic Arts, with its snapshot price trading significantly above its DCF value and Graham Number. The Forward P/E of 13.94 suggests a more reasonable valuation compared to its current P/E, indicating potential growth. The robust Altman Z-score of 6.31 signals financial stability, while the earnings yield of 1.77% is underwhelming, suggesting limited immediate returns. Overall, the stock’s valuation seems stretched, yet its financial health remains solid.

AI Exposure / Tech Reliance

Positioned within the Electronic Gaming & Multimedia industry, EA is well-suited to leverage AI and tech advancements. Its focus on digital distribution and live services aligns with modern tech trends, ensuring resilience. As gaming increasingly integrates AI, EA's established market presence offers a competitive edge.

The Bull Case

For value or GARP investors, EA presents a compelling case with its strong ROIC of 12.45% and a high Piotroski F-Score of 8, indicating efficient capital use and solid financial health. The company's FCF yield, though modest, reflects consistent cash generation, supported by a healthy operating margin of 15.43%. These metrics underscore EA's pricing power and operational efficiency, making it an attractive buy for those seeking growth at a reasonable price.

The Bear Case

Despite its strengths, EA's valuation metrics raise red flags. The Price/Book ratio of 7.41 and Price/Sales of 6.66 suggest the stock is overvalued, especially as it trades near its 52-week high. The EV to EBITDA of 39.72 further highlights a premium valuation, while the earnings surprise of -0.37% indicates potential volatility. Investors should be cautious of these structural risks.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$172.65

Institutional Ownership %

1-Year Beta

0.65

Insider Buying % (6 Mo)

Distance to 52-Week High

0.38%

Distance to 52-Week Low

28.38%

EARNINGS SURPRISE %

-37.24%

50-DAY SMA

$202.38

200-DAY SMA

$200.69

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.