We’ve recently updated our valuation analysis.

Electronic Arts Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

EA 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/Revenue4.6x
Enterprise Value/EBITDA17.8x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for EA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.5x
NTES NetEase
17x10.0%US$53.1b
ATVI Activision Blizzard
33.9x5.0%US$62.9b
PLTK Playtika Holding
13.1x11.3%US$3.6b
SCPL SciPlay
17.6x10.1%US$2.4b
EA Electronic Arts
43x19.0%US$34.5b

Price-To-Earnings vs Peers: EA is expensive based on its Price-To-Earnings Ratio (43x) compared to the peer average (20.4x).


Price to Earnings Ratio vs Industry

How does EA's PE Ratio compare vs other companies in the US Entertainment Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a26.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a26.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: EA is expensive based on its Price-To-Earnings Ratio (43x) compared to the US Entertainment industry average (17.6x)


Price to Earnings Ratio vs Fair Ratio

What is EA'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.

EA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio43.5x
Fair PE Ratio25.3x

Price-To-Earnings vs Fair Ratio: EA is expensive based on its Price-To-Earnings Ratio (43x) compared to the estimated Fair Price-To-Earnings Ratio (25.3x).


Share Price vs Fair Value

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

Below Fair Value: EA ($126.48) is trading below our estimate of fair value ($151.62)

Significantly Below Fair Value: EA is trading below fair value, but not by a significant amount.


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 EA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$127.99
US$139.87
+9.3%
5.1%US$150.00US$125.00n/a27
May ’24US$127.42
US$133.88
+5.1%
7.0%US$150.00US$112.00n/a28
Apr ’24US$120.45
US$134.09
+11.3%
7.8%US$152.00US$112.00n/a27
Mar ’24US$110.41
US$133.67
+21.1%
7.8%US$152.00US$112.00n/a26
Feb ’24US$116.76
US$136.84
+17.2%
8.6%US$157.00US$112.00n/a28
Jan ’24US$122.18
US$149.46
+22.3%
7.7%US$188.00US$126.00n/a29
Dec ’23US$131.62
US$149.60
+13.7%
7.8%US$188.00US$126.00n/a29
Nov ’23US$126.27
US$150.70
+19.3%
8.4%US$188.00US$130.00n/a29
Oct ’23US$115.71
US$151.36
+30.8%
8.3%US$188.00US$130.00n/a29
Sep ’23US$127.68
US$153.90
+20.5%
7.4%US$188.00US$130.00n/a30
Aug ’23US$130.87
US$153.13
+17.0%
8.0%US$188.00US$125.00n/a30
Jul ’23US$122.73
US$153.03
+24.7%
8.7%US$188.00US$114.00n/a30
Jun ’23US$139.53
US$153.39
+9.9%
9.2%US$188.00US$114.00n/a30
May ’23US$118.05
US$162.62
+37.8%
7.7%US$188.00US$127.00US$127.4230
Apr ’23US$125.23
US$164.95
+31.7%
7.9%US$188.00US$127.00US$120.4528
Mar ’23US$128.15
US$165.59
+29.2%
7.8%US$188.00US$127.00US$110.4128
Feb ’23US$129.94
US$169.30
+30.3%
7.3%US$196.00US$142.00US$116.7628
Jan ’23US$131.90
US$172.46
+30.7%
8.0%US$200.00US$142.00US$122.1829
Dec ’22US$120.23
US$172.80
+43.7%
7.8%US$200.00US$142.00US$131.6229
Nov ’22US$141.77
US$170.72
+20.4%
7.3%US$200.00US$142.00US$126.2729
Oct ’22US$143.59
US$169.77
+18.2%
7.6%US$200.00US$142.00US$115.7130
Sep ’22US$146.43
US$169.37
+15.7%
7.3%US$195.00US$142.00US$127.6830
Aug ’22US$143.96
US$165.49
+15.0%
6.7%US$184.00US$140.00US$130.8730
Jul ’22US$142.14
US$163.53
+15.0%
7.2%US$184.00US$134.00US$122.7332
Jun ’22US$143.62
US$163.02
+13.5%
6.8%US$182.00US$134.00US$139.5334
May ’22US$142.08
US$160.26
+12.8%
6.9%US$177.00US$134.00US$118.0533

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


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