Electronic Arts (EA): Assessing Valuation After a Strong Multi‑Month Share Price Run

Electronic Arts (EA) keeps grinding higher, with shares up about 1% over the past week and more than 20% in the past 3 months, as investors lean into its steady gaming cash flows.

See our latest analysis for Electronic Arts.

Zooming out, that recent climb sits on top of a strong year to date, with the share price at $203.92 and momentum building after a powerful multi month share price return and solid multi year total shareholder returns.

If EA’s steady gains have you thinking about where else growth and enthusiasm might be building, this could be a good moment to explore high growth tech and AI stocks as potential next ideas.

With EA’s share price sitting just above analyst targets after a strong multi year run and solid double digit earnings growth, the key question now is whether upside remains or if the market has already priced in the next leg of growth.

Most Popular Narrative Narrative: 1% Overvalued

Electronic Arts is trading just above its most followed fair value estimate of $202.36, putting the latest close of $203.92 under a tight valuation spotlight.

Analysts expect earnings to reach $1.6 billion (and earnings per share of $6.55) by about September 2028, up from $1.0 billion today. However, there is a considerable amount of disagreement amongst the analysts with the most bullish expecting $1.8 billion in earnings, and the most bearish expecting $1.3 billion.

Read the complete narrative.

Want to see what is powering that earnings leap in the models? The narrative leans on disciplined margins, steady top line growth, and a punchy future earnings multiple. Curious how those moving pieces stack up to justify today’s rich price tag and tomorrow’s projected upside path? The full story lays out the playbook.

Result: Fair Value of $202.36 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, softening live services demand and a steeper than expected decline in Apex Legends bookings could quickly challenge the current growth and valuation assumptions.

Find out about the key risks to this Electronic Arts narrative.

Another Angle on Valuation

While the narrative fair value suggests EA is only about 1% overvalued, the earnings multiple tells a tougher story. EA trades on a 57.5x P/E versus a 22.2x industry average and a 25.8x fair ratio, implying rich expectations that could reset if sentiment cools.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Electronic Arts Narrative

If the storyline above does not quite match your view, or you simply prefer to dive into the numbers yourself, you can build a custom take in just a few minutes, Do it your way.

A great starting point for your Electronic Arts research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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