EA
Electronic Arts
$202.97
▲ 0.4%Updated Today 6:01 PM ET
▲ Up 33.9% over the last 12 months
Market Cap
$50.69B
P/E
57.16x
Forward P/E (est.)
69.15x
ROE
14.2%
Revenue Growth
0.9%
EPS Growth
-17.3%
Profit Margin
11.8%
FCF Yield
2.6%
Debt / Equity
0.22x
ROIC
14.0%
Interest Coverage
21.92x
Current Ratio
1.05x
Dividend Yield
0.4%
Implied Growth (rev. DCF)
—
Rating Score
36/100
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what EA's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. EA trades near $202.97, above its 50-day average ($202.13) and 200-day average ($199.26). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 54 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. EA's is $1.06 (~0.5% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month EA found buyers near $200.36 (support) and sellers near $204.20 (resistance); its 52-week range is $146.97–$204.89. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 2.8× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
Electronic Arts (EA) is a large-cap company in the Interactive Home Entertainment industry, part of the Communication Services sector of the S&P 500, with a market value around $50.69B.
In its latest reported year it generated about $7.53B in revenue and $887.00M in net profit.
Our model rates EA Weak (36/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
4Y CAGR
1.9%
Revenue moved from $6.99B in 2022 to $7.53B in 2026, a 1.9% compound annual growth rate. The most recent year was roughly flat (0.9%) year over year. Slower, mature growth is common for established businesses.
Gross Margin
79.0%
Operating Margin
15.4%
Net Margin
11.8%
ROE
14.2%
Electronic Arts keeps about 11.8% of each sales dollar as net profit, with a 79.0% gross margin and 15.4% operating margin. Return on equity is 14.2% and return on invested capital about 14.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
—
Net Debt
—
Net Debt / EBITDA
—
Debt / Equity
0.22x
Leverage: debt-to-equity is 0.2x, and operating profit covers interest about 21.9x, with a current ratio of 1.1x. That is a conservative balance sheet — a cushion in downturns.
Operating CF
$2.55B
Free Cash Flow
$2.55B
FCF Margin
33.9%
In the latest year Electronic Arts produced about $2.55B of operating cash flow and $2.55B of free cash flow after capital spending. That is a free-cash-flow yield of about 2.6% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
P/E
57.16x
P/S
6.76x
P/B
7.51x
EV / EBITDA
32.41x
EA trades at 57.2x trailing earnings (about 69.1x on estimated forward earnings), 6.8x sales, and 7.5x book value. That is a rich multiple that prices in a lot of future growth.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How EA stacks up against its Communication Services peers — valuation, profitability, and growth versus the sector median.
In the Communication Services sector (23 S&P 500 companies), EA ranks #17 of 23 by our overall rating. It trades at a premium versus the sector on earnings (57.2x P/E vs. 17.4x median) with a lower return on equity (14.2% vs. 14.9%) and slower revenue growth (0.9% vs. 2.9%).
P/E vs sector
57.2x
median 17.4x
ROE vs sector
14.2%
median 14.9%
Growth vs sector
0.9%
median 2.9%
Sector rank
#17
of 23 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Communication Services companies by sub-industry and size. Sector median is across all 23 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$142.05 – $238.15
vs. $202.97 today · expected CAGR -7% – 3%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $7.76B | $7.99B | $8.23B | $8.48B | $8.73B |
| Net income | $930.83M | $958.76M | $987.52M | $1.02B | $1.05B |
| EPS | $3.71 | $3.82 | $3.94 | $4.06 | $4.18 |
| Share price (low) | $126.21 | $130.00 | $133.90 | $137.92 | $142.05 |
| Share price (high) | $211.59 | $217.94 | $224.48 | $231.21 | $238.15 |
| CAGR (low–high) | -38% / 4% | -20% / 4% | -13% / 3% | -9% / 3% | -7% / 3% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for EA:
- A conservative balance sheet (debt/equity 0.2x) lowers risk.
- As an established S&P 500 member in Communication Services, it brings scale and a long operating history.
The case against EA:
- Revenue growth is slow (0.9%), limiting the upside engine.
- A rich 57.2x earnings multiple prices in a lot of growth.
- Our model's overall read is Weak (36/100).
Valuation risk — at 57.2x earnings, disappointing results could compress the multiple.
Growth risk — sluggish revenue (0.9%) leaves little margin for execution missteps.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen weakly: Electronic Arts is a large-cap communication services business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 57.2x earnings, which our model scores Weak (36/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.