Electronic Arts Inc.'s (NASDAQ:EA) Intrinsic Value Is Potentially 69% Above Its Share Price
Aug 29
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U.S. Telecom Sector Analysis
UpdatedAug 31, 2024
DataAggregated Company Financials
Companies448
- 7D-0.8%
- 3M1.6%
- 1Y29.1%
- YTD21.5%
Over the last 7 days, the Telecom industry has remained flat. The past year has been better, since the industry has gained 29% in that time. Looking forward, earnings are forecast to grow by 15% annually.
Sector Valuation and Performance
Has the U.S. Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 31 Aug 2024 | US$5.3t | US$1.6t | US$189.1b | 18.8x | 28.2x | 3.4x |
| Mon, 29 Jul 2024 | US$5.2t | US$1.5t | US$197.1b | 20.6x | 26.3x | 3.4x |
| Wed, 26 Jun 2024 | US$5.4t | US$1.5t | US$191.1b | 16.5x | 28.5x | 3.6x |
| Fri, 24 May 2024 | US$5.3t | US$1.5t | US$191.3b | 17.6x | 27.7x | 3.5x |
| Sun, 21 Apr 2024 | US$5.0t | US$1.5t | US$177.4b | 17.6x | 28x | 3.3x |
| Tue, 19 Mar 2024 | US$5.0t | US$1.5t | US$175.5b | 18x | 28.4x | 3.3x |
| Thu, 15 Feb 2024 | US$4.8t | US$1.5t | US$172.7b | 15.9x | 27.9x | 3.2x |
| Sat, 13 Jan 2024 | US$4.7t | US$1.5t | US$128.1b | 15.3x | 36.7x | 3.1x |
| Mon, 11 Dec 2023 | US$4.5t | US$1.5t | US$128.1b | 16.6x | 34.8x | 2.9x |
| Wed, 08 Nov 2023 | US$4.3t | US$1.5t | US$122.9b | 13.7x | 34.9x | 2.8x |
| Fri, 06 Oct 2023 | US$4.3t | US$1.5t | US$104.7b | 13.9x | 40.7x | 2.8x |
| Sun, 03 Sep 2023 | US$4.3t | US$1.5t | US$104.5b | 14.5x | 41.4x | 2.9x |
| Tue, 01 Aug 2023 | US$4.4t | US$1.5t | US$110.7b | 16x | 39.8x | 2.9x |
| Thu, 29 Jun 2023 | US$4.1t | US$1.5t | US$107.0b | 17.7x | 38.5x | 2.8x |
| Sat, 27 May 2023 | US$4.0t | US$1.5t | US$106.6b | 16.2x | 37.7x | 2.7x |
| Mon, 24 Apr 2023 | US$3.7t | US$1.5t | US$115.0b | 16.7x | 32.4x | 2.5x |
| Wed, 22 Mar 2023 | US$3.7t | US$1.5t | US$115.3b | 16.9x | 32.2x | 2.5x |
| Fri, 17 Feb 2023 | US$3.6t | US$1.5t | US$124.9b | 19.8x | 28.9x | 2.4x |
| Sun, 15 Jan 2023 | US$3.4t | US$1.5t | US$166.4b | 17.6x | 20.7x | 2.3x |
| Tue, 13 Dec 2022 | US$3.3t | US$1.5t | US$166.5b | 16.1x | 19.8x | 2.2x |
| Thu, 10 Nov 2022 | US$3.0t | US$1.5t | US$164.0b | 16.9x | 18.4x | 2x |
| Sat, 08 Oct 2022 | US$3.3t | US$1.5t | US$187.6b | 15x | 17.6x | 2.2x |
| Mon, 05 Sep 2022 | US$3.6t | US$1.5t | US$187.7b | 15.6x | 19.4x | 2.5x |
| Wed, 03 Aug 2022 | US$3.8t | US$1.5t | US$195.7b | 17x | 19.4x | 2.6x |
| Fri, 01 Jul 2022 | US$4.3t | US$1.5t | US$213.6b | 17.2x | 20.1x | 2.9x |
| Sun, 29 May 2022 | US$4.6t | US$1.5t | US$216.6b | 18.3x | 21.3x | 3.1x |
| Tue, 26 Apr 2022 | US$4.2t | US$1.4t | US$220.8b | 19.4x | 18.9x | 2.9x |
| Thu, 24 Mar 2022 | US$4.7t | US$1.4t | US$225.7b | 18.9x | 20.9x | 3.3x |
| Sat, 19 Feb 2022 | US$4.6t | US$1.4t | US$225.2b | 17.6x | 20.6x | 3.2x |
| Mon, 17 Jan 2022 | US$5.3t | US$1.4t | US$194.7b | 20.2x | 27.3x | 3.8x |
| Wed, 15 Dec 2021 | US$5.4t | US$1.4t | US$194.6b | 19.8x | 28x | 3.9x |
| Fri, 12 Nov 2021 | US$5.8t | US$1.4t | US$199.5b | 23.1x | 28.9x | 4.1x |
| Sun, 10 Oct 2021 | US$5.8t | US$1.3t | US$179.3b | 24.2x | 32.2x | 4.3x |
| Tue, 07 Sep 2021 | US$6.1t | US$1.3t | US$177.8b | 19.9x | 34.2x | 4.5x |
Price to Earnings Ratio
34.2x
Current Industry PE
- Investors are relatively neutral on the American Communication Services industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 28.3x.
- The 3-year average PS ratio of 3.0x is lower than the industry's current PS ratio of 3.4x.
Past Earnings Growth
- The earnings for companies in the Communication Services industry have grown 2.1% per year over the last three years.
- Revenues for these companies have grown 4.8% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.S. Telecom sector?
| US Market | 0.056% | |
| Telecom | -0.80% | |
| Telecom Services and Carriers | 0.59% | |
| Entertainment | 0.29% | |
| Wireless Telecom | 0.049% | |
| Media | -0.41% | |
| Interactive Media and Services | -1.32% | |
Industry PE
- Investors are most optimistic about the Entertainment industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 26.9%, which is higher than its past year's earnings growth of 8.7% per year.
- Investors are most pessimistic about the Telecom Services and Carriers industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
Forecasted Growth
- Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 27% over the next 5 years.
- This is better than its past earnings growth rate of 8.7% per year.
- In contrast, the Media industry is expected to see its earnings grow by 12% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| NFLX Netflix | US$701.35 | 2.1% +US$6.3b | 59.4% | PE42.4x | |
| VZ Verizon Communications | US$41.78 | 1.4% +US$2.4b | 19.9% | PE15.6x | |
| T AT&T | US$19.90 | 0.9% +US$1.2b | 35.8% | PE11.4x | |
| EA Electronic Arts | US$151.82 | 2.8% +US$1.1b | 25.9% | PE34.8x | |
| TTWO Take-Two Interactive Software | US$161.71 | 1.5% +US$406.7m | 14.0% | PS5.2x |
