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Electronic Arts Inc
NASDAQ:EA

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Electronic Arts Inc
NASDAQ:EA
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Price: 202.67 USD 0.07% Market Closed
Market Cap: $50.7B

EV/IC

4.8
Current
37%
More Expensive
vs 3-y average of 3.5

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
4.8
=
Enterprise Value
$48.8B
/
Invested Capital
$10.3B

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
4.8
=
Enterprise Value
$48.8B
/
Invested Capital
$10.3B

Valuation Scenarios

Electronic Arts Inc is trading above its 3-year average

If EV/IC returns to its 3-Year Average (3.5), the stock would be worth $147.54 (27% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-73%
Maximum Upside
No Upside Scenarios
Average Downside
49%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 4.8 $202.67
0%
3-Year Average 3.5 $147.54
-27%
5-Year Average 3.5 $147.54
-27%
Industry Average 1.3 $54.18
-73%
Country Average 1.5 $63.1
-69%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
P/E Multiple
Earnings Growth PEG
US
Electronic Arts Inc
NASDAQ:EA
Average P/E: 31.4
74.5
32%
2.3
US
A
Activision Blizzard Inc
LSE:0H8X
34.2
36%
1
CN
NetEase Inc
NASDAQ:NTES
14.8
14%
1.1
JP
Nintendo Co Ltd
TSE:7974
22.3
26%
0.9
SG
Sea Ltd
NYSE:SE
28.8
27%
1.1
US
Roblox Corp
NYSE:RBLX
Negative Multiple: -37.4 N/A N/A
US
Take-Two Interactive Software Inc
NASDAQ:TTWO
Negative Multiple: -10.1 N/A N/A
CN
Z
Zhejiang Century Huatong Group Co Ltd
SZSE:002602
34.7
104%
0.3
JP
Konami Holdings Corp
TSE:9766
31.2
22%
1.4
JP
N
Nexon Co Ltd
TSE:3659
22.7
18%
1.3
JP
K
Konami Group Corp
XMUN:KOA
19
22%
0.9

Market Distribution

Higher than 81% of companies in the United States of America
Percentile
81st
Based on 11 657 companies
81st percentile
4.8
Low
0 — 0.9
Typical Range
0.9 — 2.9
High
2.9 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 0.9
Median 1.5
70th Percentile 2.9
Max 566 432.7

Electronic Arts Inc
Glance View

In the world of digital entertainment, Electronic Arts Inc., commonly known as EA, stands as a towering figure in the gaming industry. Founded in 1982 by Trip Hawkins, the company has evolved from a small studio catering to home computers into a global powerhouse that shapes how millions engage with interactive entertainment. EA’s strategy integrates both creativity and strategy, allowing it to establish a formidable presence across various gaming genres. Understanding its audience's pulse, EA has harnessed beloved franchises like FIFA, Madden NFL, and The Sims to capture the hearts of gamers worldwide. These game titles are not just products; they become part of cultural phenomena, distinguished by immersive gameplay and rich storytelling that hooks players for the long haul. EA’s business model is deeply entwined with the shifting dynamics of the industry, embracing digital transformation and pioneering new revenue streams. The company adeptly balances traditional video game sales with a robust digital sales model, encompassing downloadable content (DLC), in-game purchases, and subscription services like EA Play. As gaming becomes more connected, EA capitalizes on online multiplayer experiences and live services that continuously engage users and drive recurring revenue. This approach reflects a keen understanding of evolving consumer behaviors and the rising demand for online-first, community-driven content. By leveraging its intellectual properties and resilient digital strategy, EA ensures overarching growth and a consistent flow of revenue, positioning itself as a lynchpin in the competitive gaming landscape.

EA Intrinsic Value
129.66 USD
Overvaluation 36%
Intrinsic Value
Price $202.67
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