Electronic Arts Inc (EA) Fair Value & Analysis
Communication Services · US · Market cap $51.8B
Electronic Arts Inc
EA · US
Fair value as of: Jul 16, 2026
From 26 valuation models · updated 23 days ago
Fair value updated Jul 16, 2026, revised from $77.82 to $95.92 (+23.3%) since Jun 24, 2026. Share price +2.2% over the past month.
A strong business, but screening 54% overvalued on our models.
What matters now
- A high-quality business (quality 78/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
- The price sits above even our optimistic bull case ($118.16). The favourable scenario is already priced in.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.
How to read this chart
60‑month range $107.42 – $209.86 · fair‑value band $73.12 – $118.16 · the $209.70 price screens above the $95.92 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.
Analysis
Electronic Arts Inc (EA) currently trades at $209.70, while our model-based Fair Value estimate is $95.92, implying the stock looks roughly 54.3% overvalued today. We read business quality at 78/100 (high quality), in the Communication Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, Electronic Arts Inc generated revenue of $7.5B at a net margin of 11.8%. Revenue grew 11.9% year over year. It earns a return on equity of 13.5%. The balance sheet holds a net cash position of $1.4B. Fundamentals as of Jul 16, 2026
Our scenario range runs from $73.12 (bear case) to $118.16 (bull case); at $209.70, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades near its 52-week high and 45% above its 52-week low, currently above its 200-day average. For context, the median of 10 Communication Services peers we cover trades at -9% fair-value upside, at -54%, EA screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 26 models by family
Widest divergence: DCF Models ($110.99) versus Dividend Discount ($11.87). Highest evidence: Growth DCF (80).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 77 · Market factors (momentum, volatility) 75
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
Electronic Arts Inc. develops, markets, publishes, and delivers games, content, and services for game consoles, PCs, and mobile phones worldwide.
Full company description
Electronic Arts Inc. develops, markets, publishes, and delivers games, content, and services for game consoles, PCs, and mobile phones worldwide. It develops and publishes games and experiences across diverse genres, such as sports, racing, first-person shooter, action, role-playing, and simulation; and live services offerings, including extra content and subscription offerings through its global football and American football franchises, such as EA SPORTS College Football and EA SPORTS Madden NFL, as well as based on its IP comprising The Sims, Apex Legends, and Battlefield. The company markets and sells its games and services through digital distribution and retail channels; and directly to mass market retailers, specialty stores, and distribution arrangements. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
Electronic Arts Inc reported revenue of $7.5B in FY2026 versus $7.0B in FY2022, a compound +1.9%/yr. Reported net income was $887M in FY2026, compounding +3.0%/yr from FY2022.
EA screens 54% overvalued. Compare with NetEase, Inc →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Video game giant Electronic Arts closes $55 billion go-private sale of its business
- Saudi Arabia's investment fund buys Electronic Arts in U.S. latest entertainment push
- PIF, Silver Lake, and Jared Kushner's Affinity Partners complete $55 billion EA deal
- Video game maker EA bought by Saudi-led group for $55bn
Peer Group
Electronic Gaming & Multimedia · 152 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Electronic Gaming & Multimedia median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 40/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Electronic Gaming & Multimedia stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| NetEase, Inc 9999 | HK$202.60 | HK$192.74 | -5% |
| Take-Two Interactive Software, Inc TTWO | $237.04 | $60.45 | -74% |
| Roblox Corporation RBLX | $57.07 | $21.20 | -63% |
| Zhejiang Century Huatong Group 002602 | ¥14.04 | ¥14.68 | +5% |
| KRAFTON, Inc 259960 | 240,500 KRW | 395,557 KRW | +64% |
| Kunlun Tech Co 300418 | ¥44.61 | ¥6.87 | -85% |
| Giant Network Group 002558 | ¥29.98 | ¥15.69 | -48% |
| International Games System Co 3293 | 704.00 TWD | 568.16 TWD | -19% |
| 37 Interactive Entertainment Network Technology Group 002555 | ¥19.02 | ¥22.29 | +17% |
| Kingnet Network Co 002517 | ¥16.69 | ¥15.15 | -9% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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