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 (€130.92) is trading below our estimate of fair value (€201.18)

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?

Other financial metrics that can be useful for relative valuation.

ERT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.1x
Enterprise Value/EBITDA20.8x
PEG Ratio3x

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 Average22x
EVD CTS Eventim KGaA
29.3x6.3%€9.2b
G24 Scout24
33.2x14.2%€5.7b
NTES NetEase
13.9x7.9%US$57.4b
RRTL RTL Group
11.7x-6.6%€4.7b
ERT Electronic Arts
32.6x10.8%€38.0b

Price-To-Earnings vs Peers: ERT is expensive based on its Price-To-Earnings Ratio (32.6x) compared to the peer average (22x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.8%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.8%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: ERT is expensive based on its Price-To-Earnings Ratio (32.6x) compared to the European Entertainment industry average (12.1x).


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 Ratio32.6x
Fair PE Ratio23x

Price-To-Earnings vs Fair Ratio: ERT is expensive based on its Price-To-Earnings Ratio (32.6x) compared to the estimated Fair Price-To-Earnings Ratio (23x).


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€130.92
€146.24
+11.7%
7.2%€167.30€127.99n/a24
Oct ’25€128.92
€144.76
+12.3%
6.8%€165.78€126.83n/a24
Sep ’25€135.88
€144.18
+6.1%
6.5%€165.23€126.41n/a25
Aug ’25€139.88
€147.97
+5.8%
6.8%€169.59€129.74n/a24
Jul ’25€129.62
€140.21
+8.2%
5.8%€158.98€126.25n/a25
Jun ’25€120.66
€140.11
+16.1%
5.5%€158.22€125.64n/a26
May ’25€119.20
€142.15
+19.3%
5.0%€159.00€126.27n/a27
Apr ’25€121.14
€140.38
+15.9%
4.6%€152.41€129.32n/a26
Mar ’25€129.18
€140.39
+8.7%
4.5%€152.26€129.19n/a26
Feb ’25€127.40
€139.66
+9.6%
4.6%€151.80€128.80n/a26
Jan ’25€123.18
€134.49
+9.2%
5.8%€146.74€117.75n/a25
Dec ’24€127.30
€134.89
+6.0%
5.7%€147.65€118.48n/a25
Nov ’24€116.92
€136.51
+16.8%
6.2%€151.39€120.17n/a26
Oct ’24€112.62
€134.32
+19.3%
6.4%€149.74€118.86€128.9227
Sep ’24€110.44
€133.77
+21.1%
6.8%€149.96€117.56€135.8826
Aug ’24€123.66
€131.58
+6.4%
6.4%€146.80€117.62€139.8826
Jul ’24€119.98
€129.84
+8.2%
4.8%€141.70€118.69€129.6226
Jun ’24€119.46
€130.08
+8.9%
5.1%€139.50€116.25€120.6627
May ’24€115.34
€122.03
+5.8%
7.0%€136.73€102.09€119.2028
Apr ’24€109.08
€123.69
+13.4%
7.8%€140.20€103.31€121.1427
Mar ’24€104.44
€125.53
+20.2%
7.8%€142.74€105.18€129.1826
Feb ’24€103.24
€124.56
+20.7%
8.6%€142.92€101.95€127.4028
Jan ’24€113.78
€141.00
+23.9%
7.7%€177.36€118.87€123.1829
Dec ’23€124.64
€144.78
+16.2%
7.8%€181.95€121.94€127.3029
Nov ’23€124.14
€151.23
+21.8%
8.4%€188.66€130.46€116.9229
Oct ’23€120.40
€151.40
+25.7%
8.3%€188.06€130.04€112.6229

Analyst Forecast: Target price is less than 20% higher than the current share price.


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