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Electronic Arts Inc. (EA)

POSITIVE
Communication ServicesElectronic Gaming & MultimediaUnited States

Price

$203.27

Market Cap

$50.97B

Fundamental

70

Technical

85

Composite

75

AI Analysis

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Overview

Electronic Arts Inc. develops, markets, publishes, and delivers games, content, and services for game consoles, PCs, and mobile phones worldwide. It develops and publishes games and experiences across diverse genres, such as sports, racing, first-person shooter, action, role-playing, and simulation; and live services offerings, including extra content and subscription offerings through its global football and American football franchises, such as EA SPORTS College Football and EA SPORTS Madden NFL, as well as based on its IP comprising The Sims, Apex Legends, and Battlefield. The company markets and sells its games and services through digital distribution and retail channels; and directly to mass market retailers, specialty stores, and distribution arrangements. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California.

Balance Sheet & Liquidity

Revenue

$7.53B

Net Income

$887M

Free Cash Flow

$2.28B

Total Equity

$6.76B

Total Liabilities

$6.37B

Current Ratio

1.05

Interest Coverage

21.92

Debt/EBITDA

5.48

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Fair Value Estimation

Overvalued

Fair Value

$141.18

Current Price

$203.27

Margin of Safety

-44.0%

Fair Value Range

$91.77 - $190.60

Estimation Methods

Analyst Target:$202.80
DCF:$183.21
PE-based:$78.89
Graham Growth:$51.79
EPV:$44.92
Analyst Consensus:Hold (9B / 20H / 0S)
Last Earnings Surprise:-36.04%

Valuation Metrics

P/E Ratio

57.26

ROE

13.1%

P/B Ratio

7.54

P/FCF

22.38

Gross Margin

79.0%

ROIC

9.8%

Value Creation (Economic Moat)

ROIC

9.8%

WACC

7.2%

ROIC − WACC

+2.6 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (21)

  • EPS shows upward trend
  • EPS CAGR 45.14%
  • Price CAGR 9.95%
  • ROIC 9.8%
  • Gross Margin 79.0%
  • P/FCF 22.38
  • Debt/Equity ratio
  • Operating Margin 15.4%
  • Positive Free Cash Flow
  • CapEx intensity
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • Low reliance on intangibles
  • ROE 14.2%
  • Revenue Growth 5Y 6.0%
  • Earnings Surprise avg 18.9%
  • Earnings Quality (OCF/NI) 2.88
  • Share Dilution 0.0%
  • Piotroski F-Score 7/9

Failed (6)

  • P/B Ratio 7.54
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Analyst Consensus 31% Buy
  • PEG Ratio 13.98
  • Net Margin Trend 11.8% vs 11.8%

Unavailable (1)

  • Dividend Payout NaN%

Price Chart

Technical Indicators

RSI (14)

60.37

SMA 50

$202.22

SMA 200

$198.64

MACD

0.18

Volatility

1.6%

Momentum (12m)

35.5%

RSI 60.4, SMA trend bullish, momentum 35.5%.

Piotroski F-Score

7/9

Strong financial health

score
criteria

Earnings Quality

2.88

High quality: earnings backed by cash

Share Dilution

0.0%

Buying back shares. Shareholder friendly

Governance

Executive Team

NameTitleAge
Mr. Andrew WilsonChairman & CEO50
Mr. Stuart CanfieldChief Financial Officer45
Mr. Jacob J. Schatz J.D.Executive VP of Global Affairs, Chief Legal Officer & Corporate Secretary56
Ms. Vijayanthimala SinghExecutive VP & Chief People Officer54
Ms. Laura MielePresident of EA Entertainment & Central Development55
Mr. Eric Charles KellySenior VP & Chief Accounting Officer52
Mr. Matt ThomlinsonChief Technology Officer-
Mr. Andrew Paul UerkwitzVice President of Investor Relation-
Justin HiggsVice President of Corporate Communications-
Mr. Joel LinznerExecutive Vice President of Worldwide Business Affairs73

Audit Risk

8

Board Risk

4

Compensation Risk

4

Shareholder Rights Risk

1

Latest News

Recent headlines for EA, sourced from Markets Gazette.

  • 2d agoPOSITIVE
    $100 Invested In Electronic Arts 15 Years Ago Would Be Worth This Much Today

    An investment of $100 in Electronic Arts (EA) 15 years ago would have yielded a significant return, illustrating the company's long-term growth trajectory and market performance. While specific figures are not provided in the title, the implication of substantial growth suggests strong revenue generation, successful game launches, and effective strategic decisions over the past decade and a half. This historical performance indicates robust shareholder value creation, making EA an attractive prospect for investors looking for sustained growth in the video game industry.

  • 3/25/2026POSITIVE
    Electronic Arts’ New Dollar Debt Rallies After $15 Billion Sale

    Electronic Arts Inc. has seen its newly issued dollar-denominated debt rally following a significant $15 billion sale. This debt issuance, priced on Tuesday, is intended to finance a record buyout for the video game maker. The strong investor demand for the debt, reflected in its rally, suggests confidence in the company's financial stability and its strategic moves. For investors, this indicates a positive market perception of EA's financing activities and its potential for future growth or acquisitions, potentially bolstering the equity value.

  • 3/23/2026NEUTRAL
    JPMorgan Kicks Off $8 Billion Junk-Bond Sale for EA Buyout

    JPMorgan Chase & Co. is spearheading an $8 billion junk-bond sale to finance the acquisition of video game developer Electronic Arts Inc. This marks a significant leveraged buyout in the gaming sector. The bond issuance aims to secure the substantial funding required for the deal, which is expected to be a record in terms of leveraged buyouts. Investors will monitor the terms of the bonds and the successful completion of the acquisition for potential impacts on EA's future performance and market position.

  • 3/20/2026POSITIVE
    Electronic Arts $15 Billion Debt Sale Draws $25 Billion Demand

    Electronic Arts Inc. has successfully garnered approximately $25 billion in investor demand for its debt offering, which aims to raise nearly $15 billion. This substantial oversubscription indicates strong market confidence in the company's financial stability and its strategic acquisition plans. The robust demand, even amidst volatile market conditions for banks facilitating such debt, suggests that investors view EA's proposed buyout favorably, potentially signaling a positive future for the company's growth trajectory and shareholder value.

  • 3/16/2026POSITIVE
    JPMorgan Draws $19 Billion of Orders for Debt Tied to EA Buyout

    JPMorgan Chase & Co. has secured substantial investor interest, drawing approximately $19 billion in orders for the nearly $15 billion debt offering aimed at financing the leveraged buyout of video game publisher Electronic Arts Inc. This strong demand indicates robust confidence in the deal's viability and the future prospects of EA under new ownership. The successful debt placement is a critical step in facilitating the acquisition, potentially leading to significant changes in EA's strategic direction and market positioning.

  • 3/16/2026NEUTRAL
    JPMorgan Draws $19 Billion in Orders for EA Buyout Debt

    JPMorgan Chase & Co. is facilitating a significant leveraged buyout of video game publisher Electronic Arts Inc. The deal is backed by nearly $15 billion in debt, for which banks have already secured approximately $19 billion in investor orders. This substantial demand for the debt indicates strong market appetite for financing such large transactions, potentially signaling confidence in the underlying asset's future cash flows despite the increased leverage. For investors, this news highlights a major corporate transaction but does not directly impact EA's stock price in the short term, as it pertains to the financing of its acquisition.

  • 3/11/2026NEUTRAL
    JPMorgan Tees Up EA Debt Sale as Iran War Shakes Credit Markets

    JPMorgan Chase & Co. has initiated investor discussions for a $20 billion financing package for Electronic Arts Inc., marking the largest debt sale for a leveraged buyout. However, the deal faces headwinds from escalating geopolitical tensions in the Middle East, specifically concerns over a protracted war. This uncertainty is casting a shadow over the credit markets, potentially impacting the terms and success of the debt issuance. Investors will be monitoring the situation closely for any signs of increased risk aversion affecting corporate debt.

via Markets Gazette

Disclaimer

This platform is for educational purposes only. It does not provide financial, investment, or trading advice. All scores, valuations, and signals are based on automated analysis of publicly available data that may be incomplete or inaccurate. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

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