Electronic Arts Stock Current Valuation

EA Stock  USD 131.87  0.97  0.74%   
Valuation analysis of Electronic Arts helps investors to measure Electronic Arts' intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. The current year's Enterprise Value Multiple is expected to grow to 17.32. Fundamental drivers impacting Electronic Arts' valuation include:
Price Book
4.6464
Enterprise Value
33.8 B
Enterprise Value Ebitda
16.9417
Price Sales
4.5705
Forward PE
17.1527
Undervalued
Today
131.87
Please note that Electronic Arts' price fluctuation is very steady at this time. Calculation of the real value of Electronic Arts is based on 3 months time horizon. Increasing Electronic Arts' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Electronic Arts is useful when determining the fair value of the Electronic stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Electronic Arts. Since Electronic Arts is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Electronic Stock. However, Electronic Arts' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  131.87 Real  139.15 Target  143.73 Hype  131.86 Naive  133.16
The real value of Electronic Stock, also known as its intrinsic value, is the underlying worth of Electronic Arts Company, which is reflected in its stock price. It is based on Electronic Arts' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Electronic Arts' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Electronic Arts' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
118.68
Downside
139.15
Real Value
140.10
Upside
Estimating the potential upside or downside of Electronic Arts helps investors to forecast how Electronic stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Electronic Arts more accurately as focusing exclusively on Electronic Arts' fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
1.691.541.80
Details
Hype
Prediction
LowEstimatedHigh
130.91131.86132.81
Details
Potential
Annual Dividend
LowForecastedHigh
0.500.510.51
Details
28 Analysts
Consensus
LowTarget PriceHigh
130.79143.73159.54
Details

Electronic Current Valuation Analysis

Electronic Arts' Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
 2021 2022 2023 2024 (projected)
Gross Profit5.1B5.6B6.5B6.8B
Total Revenue7.0B7.4B8.5B9.0B

Enterprise Value

 = 

Market Cap + Debt

-

Cash

More About Current Valuation | All Equity Analysis

Current Electronic Arts Current Valuation

    
  33.85 B  
Most of Electronic Arts' fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Electronic Arts is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Electronic Current Valuation Driver Correlations

Understanding the fundamental principles of building solid financial models for Electronic Arts is extremely important. It helps to project a fair market value of Electronic Stock properly, considering its historical fundamentals such as Current Valuation. Since Electronic Arts' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Electronic Arts' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Electronic Arts' interrelated accounts and indicators.
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Click cells to compare fundamentals
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Competition

In accordance with the recently published financial statements, Electronic Arts has a Current Valuation of 33.85 B. This is 17.93% higher than that of the Entertainment sector and significantly higher than that of the Communication Services industry. The current valuation for all United States stocks is 103.61% lower than that of the firm.

Electronic Current Valuation Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Electronic Arts' direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Electronic Arts could also be used in its relative valuation, which is a method of valuing Electronic Arts by comparing valuation metrics of similar companies.
Electronic Arts is currently under evaluation in current valuation category among related companies.

Electronic Arts ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Electronic Arts' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Electronic Arts' managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Electronic Fundamentals

About Electronic Arts Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Electronic Arts's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Electronic Arts using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Electronic Arts based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California. Electronic Arts operates under Electronic Gaming Multimedia classification in the United States and is traded on NASDAQ Exchange. It employs 12900 people.

Pair Trading with Electronic Arts

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Electronic Arts position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Electronic Arts will appreciate offsetting losses from the drop in the long position's value.

Moving against Electronic Stock

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The ability to find closely correlated positions to Electronic Arts could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Electronic Arts when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Electronic Arts - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Electronic Arts to buy it.
The correlation of Electronic Arts is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Electronic Arts moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Electronic Arts moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Electronic Arts can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Electronic Arts offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Electronic Arts' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Electronic Arts Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Electronic Arts Stock:
Check out Electronic Arts Piotroski F Score and Electronic Arts Altman Z Score analysis.
For information on how to trade Electronic Stock refer to our How to Trade Electronic Stock guide.
Note that the Electronic Arts information on this page should be used as a complementary analysis to other Electronic Arts' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

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When running Electronic Arts' price analysis, check to measure Electronic Arts' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Electronic Arts is operating at the current time. Most of Electronic Arts' value examination focuses on studying past and present price action to predict the probability of Electronic Arts' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Electronic Arts' price. Additionally, you may evaluate how the addition of Electronic Arts to your portfolios can decrease your overall portfolio volatility.
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Is Electronic Arts' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Electronic Arts. If investors know Electronic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Electronic Arts listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.466
Dividend Share
0.76
Earnings Share
3.97
Revenue Per Share
28.177
Quarterly Revenue Growth
0.034
The market value of Electronic Arts is measured differently than its book value, which is the value of Electronic that is recorded on the company's balance sheet. Investors also form their own opinion of Electronic Arts' value that differs from its market value or its book value, called intrinsic value, which is Electronic Arts' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Electronic Arts' market value can be influenced by many factors that don't directly affect Electronic Arts' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Electronic Arts' value and its price as these two are different measures arrived at by different means. Investors typically determine if Electronic Arts is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Electronic Arts' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.