(EA) Electronic Arts - Ratings and Ratios
Sports, Racing, Shooter, RPG, Simulation
EA EPS (Earnings per Share)
EA Revenue
Description: EA Electronic Arts September 29, 2025
Electronic Arts Inc. (NASDAQ:EA) creates, markets, and distributes interactive entertainment across consoles, PC, and mobile platforms, covering genres from sports and racing to first-person shooters, role-playing, and simulation. Its flagship live-service franchises include EA SPORTS Madden NFL, EA SPORTS College Football, The Sims, Apex Legends, and Battlefield, with revenue streams from one-time game sales, downloadable content, and subscription services such as EA Play.
Key performance indicators from the most recent fiscal year (FY 2023) show total revenue of roughly **$7.1 billion**, of which **≈70 %** was generated through digital channels-a trend that has accelerated by about **4 percentage points** year-over-year. EA Play reported **~10 million** global subscribers, contributing an estimated **$400 million** in recurring revenue, while the company’s net bookings reached **$7.5 billion**, reflecting strong demand for live-service updates and seasonal content. These figures are consistent with the broader industry shift toward recurring-revenue models, which historically command higher multiples (average EV/EBITDA ≈ 15× for top-tier live-service publishers versus ≈ 10× for pure-sale developers).
Economic and sector drivers that materially affect EA’s outlook include: (1) **Console generation cycles**, where new hardware launches (e.g., PlayStation 5, Xbox Series X) tend to boost high-budget title sales by 12-15 % in the first two quarters; (2) **Mobile gaming growth**, with the global market expanding at a **~11 % CAGR** and EA’s mobile titles (e.g., FIFA Mobile) capturing a modest but rising share; and (3) **Licensing risk**, particularly the reliance on sports league agreements that are subject to renewal and can be renegotiated under less favorable terms, which would materially impact the revenue contribution from sports franchises.
Assumption: the FY 2024 guidance from management remains unchanged and macro-economic conditions (inflation, discretionary spending) stay within the historical variance observed over the past five years; uncertainty: potential regulatory scrutiny of loot-box mechanics could alter monetization strategies in certain jurisdictions.
For a deeper quantitative assessment of EA’s valuation relative to peers, you might explore the analyst tools on ValueRay.
EA Stock Overview
| Market Cap in USD | 50,056m |
| Sub-Industry | Interactive Home Entertainment |
| IPO / Inception | 1990-03-26 |
EA Stock Ratings
| Growth Rating | 66.9% |
| Fundamental | 66.7% |
| Dividend Rating | 62.3% |
| Return 12m vs S&P 500 | 17.0% |
| Analyst Rating | 3.71 of 5 |
EA Dividends
| Dividend Yield 12m | 0.38% |
| Yield on Cost 5y | 0.63% |
| Annual Growth 5y | 45.41% |
| Payout Consistency | 99.2% |
| Payout Ratio | 19.1% |
EA Growth Ratios
| Growth Correlation 3m | 77.1% |
| Growth Correlation 12m | 55.8% |
| Growth Correlation 5y | 43.2% |
| CAGR 5y | 17.59% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.58 |
| CAGR/Mean DD 3y (Pain Ratio) | 2.39 |
| Sharpe Ratio 12m | 0.45 |
| Alpha | 22.78 |
| Beta | 0.767 |
| Volatility | 21.27% |
| Current Volume | 1827.4k |
| Average Volume 20d | 3618.2k |
| Stop Loss | 194.4 (-3%) |
| Signal | 0.41 |
Piotroski VR‑10 (Strict, 0-10) 8.0
| Net Income (1.04b TTM) > 0 and > 6% of Revenue (6% = 448.4m TTM) |
| FCFTA 0.15 (>2.0%) and ΔFCFTA 0.36pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -6.62% (prev 15.33%; Δ -21.96pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.17 (>3.0%) and CFO 1.98b > Net Income 1.04b (YES >=105%, WARN >=100%) |
| Net Debt (435.0m) to EBITDA (1.88b) ratio: 0.23 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.84 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (254.0m) change vs 12m ago -5.22% (target <= -2.0% for YES) |
| Gross Margin 79.14% (prev 78.01%; Δ 1.13pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 61.24% (prev 57.43%; Δ 3.82pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 33.91 (EBITDA TTM 1.88b / Interest Expense TTM 45.0m) >= 6 (WARN >= 3) |
Altman Z'' 3.44
| (A) -0.04 = (Total Current Assets 2.54b - Total Current Liabilities 3.04b) / Total Assets 11.70b |
| (B) 0.53 = Retained Earnings (Balance) 6.24b / Total Assets 11.70b |
| (C) 0.13 = EBIT TTM 1.53b / Avg Total Assets 12.20b |
| (D) 1.08 = Book Value of Equity 6.08b / Total Liabilities 5.62b |
| Total Rating: 3.44 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 66.70
| 1. Piotroski 8.0pt = 3.0 |
| 2. FCF Yield 3.47% = 1.74 |
| 3. FCF Margin 23.41% = 5.85 |
| 4. Debt/Equity 0.32 = 2.45 |
| 5. Debt/Ebitda 0.23 = 2.46 |
| 6. ROIC - WACC (= 4.40)% = 5.49 |
| 7. RoE 15.27% = 1.27 |
| 8. Rev. Trend -33.87% = -2.54 |
| 9. EPS Trend -60.45% = -3.02 |
What is the price of EA shares?
Over the past week, the price has changed by -0.04%, over one month by -0.77%, over three months by +32.06% and over the past year by +39.76%.
Is Electronic Arts a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of EA is around 199.65 USD . This means that EA is currently overvalued and has a potential downside of -0.42%.
Is EA a buy, sell or hold?
- Strong Buy: 10
- Buy: 0
- Hold: 18
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the EA price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 199.8 | -0.3% |
| Analysts Target Price | 199.8 | -0.3% |
| ValueRay Target Price | 222.6 | 11% |
EA Fundamental Data Overview October 25, 2025
P/E Trailing = 50.2807
P/E Forward = 24.2718
P/S = 6.6973
P/B = 8.2404
P/EG = 1.9738
Beta = 0.767
Revenue TTM = 7.47b USD
EBIT TTM = 1.53b USD
EBITDA TTM = 1.88b USD
Long Term Debt = 1.48b USD (from longTermDebt, last quarter)
Short Term Debt = 469.0m USD (from shortTermDebt, last quarter)
Debt = 1.95b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 435.0m USD (from netDebt column, last quarter)
Enterprise Value = 50.38b USD (50.06b + Debt 1.95b - CCE 1.63b)
Interest Coverage Ratio = 33.91 (Ebit TTM 1.53b / Interest Expense TTM 45.0m)
FCF Yield = 3.47% (FCF TTM 1.75b / Enterprise Value 50.38b)
FCF Margin = 23.41% (FCF TTM 1.75b / Revenue TTM 7.47b)
Net Margin = 13.94% (Net Income TTM 1.04b / Revenue TTM 7.47b)
Gross Margin = 79.14% ((Revenue TTM 7.47b - Cost of Revenue TTM 1.56b) / Revenue TTM)
Gross Margin QoQ = 83.30% (prev 80.58%)
Tobins Q-Ratio = 4.31 (Enterprise Value 50.38b / Total Assets 11.70b)
Interest Expense / Debt = 0.10% (Interest Expense 2.00m / Debt 1.95b)
Taxrate = 26.37% (72.0m / 273.0m)
NOPAT = 1.12b (EBIT 1.53b * (1 - 26.37%))
Current Ratio = 0.84 (Total Current Assets 2.54b / Total Current Liabilities 3.04b)
Debt / Equity = 0.32 (Debt 1.95b / totalStockholderEquity, last quarter 6.08b)
Debt / EBITDA = 0.23 (Net Debt 435.0m / EBITDA 1.88b)
Debt / FCF = 0.25 (Net Debt 435.0m / FCF TTM 1.75b)
Total Stockholder Equity = 6.82b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.91% (Net Income 1.04b / Total Assets 11.70b)
RoE = 15.27% (Net Income TTM 1.04b / Total Stockholder Equity 6.82b)
RoCE = 18.37% (EBIT 1.53b / Capital Employed (Equity 6.82b + L.T.Debt 1.48b))
RoIC = 12.91% (NOPAT 1.12b / Invested Capital 8.71b)
WACC = 8.51% (E(50.06b)/V(52.01b) * Re(8.84%) + D(1.95b)/V(52.01b) * Rd(0.10%) * (1-Tc(0.26)))
Discount Rate = 8.84% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -3.19%
[DCF Debug] Terminal Value 75.50% ; FCFE base≈1.79b ; Y1≈1.80b ; Y5≈1.92b
Fair Price DCF = 118.1 (DCF Value 29.44b / Shares Outstanding 249.3m; 5y FCF grow -0.10% → 3.0% )
EPS Correlation: -60.45 | EPS CAGR: -19.81% | SUE: 1.36 | # QB: 1
Revenue Correlation: -33.87 | Revenue CAGR: -4.64% | SUE: 1.32 | # QB: 2
Additional Sources for EA Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle