Electronic Arts Inc (EA) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Electronic Arts Inc stock (EA) is currently trading at $202.34. Electronic Arts Inc PE ratio is 75.80. Electronic Arts Inc PS ratio (Price-to-Sales) is 6.91. Analyst consensus price target for EA is $205.59. WallStSmart rates EA as Sell.
- EA PE ratio analysis and historical PE chart
- EA PS ratio (Price-to-Sales) history and trend
- EA intrinsic value — DCF, Graham Number, EPV models
- EA stock price prediction 2025 2026 2027 2028 2029 2030
- EA fair value vs current price
- EA insider transactions and insider buying
- Is EA undervalued or overvalued?
- Electronic Arts Inc financial analysis — revenue, earnings, cash flow
- EA Piotroski F-Score and Altman Z-Score
- EA analyst price target and Smart Rating
Electronic Arts Inc
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EA Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Electronic Arts Inc (EA)
EA trades 1018% above its Graham fair value of $18.09, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Electronic Arts Inc (EA) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, institutional own.. Concerns around operating margin and price/book. Mixed signals suggest waiting for clearer direction before acting.
Electronic Arts Inc (EA) Key Strengths (2)
95.31% of shares held by major funds and institutions
Large-cap company with substantial market presence
Electronic Arts Inc (EA) Areas to Watch (8)
Earnings declining -68.50%, profits shrinking
Very thin margins with limited operational efficiency
Very expensive at 8.2x book value
Revenue growing slowly at 1.00% annually
Premium valuation at 6.9x annual revenue
Thin profit margins with limited profitability
Moderate profitability with room for improvement
Growth is fairly priced, not cheap, not expensive
Supporting Valuation Data
Electronic Arts Inc (EA) Detailed Analysis Report
Overall Assessment
This company scores 41/100 in our Smart Analysis, earning a D grade. Out of 10 metrics analyzed, 2 register as strengths (avg 9.5/10) while 8 fall into concern territory (avg 3.1/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Institutional Own., Market Cap.
The Bear Case
The primary concerns are EPS Growth, Operating Margin, Price/Book. Some valuation metrics including PEG Ratio (1.76), Price/Sales (6.91), Price/Book (8.16) suggest expensive pricing. Growth concerns include Revenue Growth at 1.00%, EPS Growth at -68.50%, which may limit upside. Profitability pressure is visible in Return on Equity at 10.00%, Operating Margin at 8.57%, Profit Margin at 9.31%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 10.00% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 1.00% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. EPS Growth and Operating Margin are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
EA Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
EA's Price-to-Sales ratio of 6.91x trades 82% above its historical average of 3.8x (91th percentile), historically expensive. The current valuation is 19% below its historical high of 8.57x set in Jul 2018, and 676% above its historical low of 0.89x in Jul 2012.
WallStSmart Analysis Synopsis
Data-driven financial summary for Electronic Arts Inc (EA) · COMMUNICATION SERVICES › ELECTRONIC GAMING & MULTIMEDIA
The Big Picture
Electronic Arts Inc operates as a stable business with moderate growth and solid fundamentals. Revenue reached 7.3B with 1% growth year-over-year. Profit margins are thin at 9.3%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
Generating 1.8B in free cash flow and 1.8B in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Margin expansion: can Electronic Arts Inc push profit margins above 15% as the business scales?
Valuation compression risk at a P/E of 75.8x. Any growth miss could trigger a sharp correction.
Sector dynamics: monitor ELECTRONIC GAMING & MULTIMEDIA industry trends, competitive moves, and regulatory changes that could impact Electronic Arts Inc.
Bottom Line
Electronic Arts Inc offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Electronic Arts Inc(EA)
NASDAQ
COMMUNICATION SERVICES
ELECTRONIC GAMING & MULTIMEDIA
USA
Electronic Arts Inc. (EA) is an American video game company headquartered in Redwood City, California. It is the second-largest gaming company in the Americas and Europe by revenue and market capitalization after Activision Blizzard and ahead of Take-Two Interactive, and Ubisoft as of May 2020.