Electronic Arts Inc.

XTRA:ERT Stock Report

Market Cap: €42.0b

Electronic Arts Valuation

Is ERT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ERT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ERT (€158.76) is trading below our estimate of fair value (€252.67)

Significantly Below Fair Value: ERT is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ERT?

Key metric: As ERT is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ERT. This is calculated by dividing ERT's market cap by their current earnings.
What is ERT's PE Ratio?
PE Ratio41.8x
EarningsUS$1.05b
Market CapUS$43.71b

Price to Earnings Ratio vs Peers

How does ERT's PE Ratio compare to its peers?

The above table shows the PE ratio for ERT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.7x
EVD CTS Eventim KGaA
31.6x14.1%€7.9b
9999 NetEase
14.6x8.9%HK$439.5b
G24 Scout24
35.3x14.8%€6.2b
7974 Nintendo
29.2x12.0%JP¥9.5t
ERT Electronic Arts
41.8x13.0%€43.7b

Price-To-Earnings vs Peers: ERT is expensive based on its Price-To-Earnings Ratio (41.8x) compared to the peer average (27.7x).

Price to Earnings Ratio vs Industry

How does ERT's PE Ratio compare vs other companies in the European Entertainment Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ERT 41.8xIndustry Avg. 13.9xNo. of Companies12PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ERT is expensive based on its Price-To-Earnings Ratio (41.8x) compared to the European Entertainment industry average (13.9x).

Price to Earnings Ratio vs Fair Ratio

What is ERT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ERT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio41.8x
Fair PE Ratio23.6x

Price-To-Earnings vs Fair Ratio: ERT is expensive based on its Price-To-Earnings Ratio (41.8x) compared to the estimated Fair Price-To-Earnings Ratio (23.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ERT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€158.76
€148.93
-6.2%
7.0%€168.87€131.96n/a24
Nov ’25€139.76
€148.93
+6.6%
7.0%€168.87€131.96n/a24
Oct ’25€128.40
€144.76
+12.7%
6.8%€165.78€126.83n/a24
Sep ’25€135.96
€144.18
+6.0%
6.5%€165.23€126.41n/a25
Aug ’25€137.62
€147.46
+7.1%
6.8%€169.00€129.29n/a24
Jul ’25€128.46
€140.21
+9.1%
5.8%€158.98€126.25n/a25
Jun ’25€120.70
€140.11
+16.1%
5.5%€158.22€125.64n/a26
May ’25€118.64
€142.15
+19.8%
5.0%€159.00€126.27n/a27
Apr ’25€122.78
€140.38
+14.3%
4.6%€152.41€129.32n/a26
Mar ’25€129.42
€140.39
+8.5%
4.5%€152.26€129.19n/a26
Feb ’25€125.40
€139.66
+11.4%
4.6%€151.80€128.80n/a26
Jan ’25€124.02
€134.49
+8.4%
5.8%€146.74€117.75n/a25
Dec ’24€126.64
€134.89
+6.5%
5.7%€147.65€118.48n/a25
Nov ’24€117.64
€136.51
+16.0%
6.2%€151.39€120.17€139.7626
Oct ’24€113.72
€134.32
+18.1%
6.4%€149.74€118.86€128.4027
Sep ’24€111.30
€133.77
+20.2%
6.8%€149.96€117.56€135.9626
Aug ’24€124.36
€131.58
+5.8%
6.4%€146.80€117.62€137.6226
Jul ’24€119.36
€129.84
+8.8%
4.8%€141.70€118.69€128.4626
Jun ’24€119.14
€130.08
+9.2%
5.1%€139.50€116.25€120.7027
May ’24€112.08
€122.03
+8.9%
7.0%€136.73€102.09€118.6428
Apr ’24€110.02
€123.69
+12.4%
7.8%€140.20€103.31€122.7827
Mar ’24€103.72
€125.53
+21.0%
7.8%€142.74€105.18€129.4226
Feb ’24€104.36
€124.56
+19.4%
8.6%€142.92€101.95€125.4028
Jan ’24€112.80
€141.00
+25.0%
7.7%€177.36€118.87€124.0229
Dec ’23€124.72
€144.78
+16.1%
7.8%€181.95€121.94€126.6429
Nov ’23€127.32
€151.23
+18.8%
8.4%€188.66€130.46€117.6429

Analyst Forecast: Target price is lower than the current share price.

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