Electronic Arts Inc (EA) fair value: what the stock is really worth
We calculate from audited financials what Electronic Arts Inc is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily, free.
Compare price with fair valuebelow fair value = cheap, above = expensive
Check the quality50 and up solid, 75 and up strong
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Communication Services · US · Market cap $51.8B · ISIN US2855121099
At a glance
EAElectronic Arts IncEA · US
Price from Aug 10, 2026$209.70
Fair Value$76.57
Upside−63.5%
Quality78/100
A strong business, but trading 174% above our fair value of $76.57.
As of Sep 1, 2026, the fair value of Electronic Arts Inc is $76.57 per share against a price of $209.70, so the fair value sits 63% below the price. A model estimate from reported figures, not an analyst target.
✓Healthy Growth (revenue 5y +6.0 %/yr)
✓Solidly profitable · 11.8% net margin
✓Low debt · generates free cash flow
·0.36% dividend yield
!Mixed vs. peers (6/15)
!Moderate moat 63/100
!Evidence only medium, so the estimate is less certain
!Weak on dividend: 7 out of 100
Evidence: MediumRange $58.37 to $94.33
Fair value as of: Sep 1, 2026
From 26 valuation models · updated 8 days ago
Share price +1.6% over the past month.
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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 ($94.33). 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 Sep 1, 2026.
How to read this chart
60‑month range $107.42 – $209.91 · fair‑value band $58.37 – $94.33 · the $209.70 price screens above the $76.57 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 1, 2026.
Electronic Arts Inc (EA) currently trades at $209.70, while our model-based Fair Value estimate is $76.57, implying the stock looks roughly 173.9% overvalued today. The Quality Score stands at 78/100 (high quality), in the Communication Services sector. Bull case: the DCF Models group reads highest at a median of $111.69 per share, and 0 of the 26 models we run sit above the $209.70 price. Bear case: the Dividend Discount group reads lowest at $11.87, and 26 of the 26 models stay below the price. Evidence for this calculation is medium.
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 Sep 1, 2026
Scenario range: $58.37 (bear) to $94.33 (bull), the price of $209.70 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target. 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 −20% fair-value upside, at −63%, EA screens richer than that median.
Fair Value models
Based on fiscal year 2026 figures (about 5 months old). Earnings retained since then ($1.22 per share) are deliberately not added.
Each model values the company its own way; the fair value above is the evidence-weighted blend. Evidence (0 to 100) shows how complete a model's inputs are. How we calculate →
ModelBear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence
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Key figures & financial health
P/E ratio59.7
P/S ratio7.04P/E × margin
EPS (TTM)$3.51price ÷ EPS = P/E 59.7
Dividend yield0.4%payout 21.7%
Net margin11.8%FY2026
Return on equity13.5%TTM
More key figures
Profitability
Return on assets (EBIT)10.1%avg 5y
Operating margin24.0%TTM
Growth
Revenue (TTM)$7.5BTTM
Revenue growth (YoY)+11.9%3y avg +0.5%
EPS growth (YoY)+85.3%
Balance sheet & cash flow
Free cash flow$2.3BFY2026
Net cash$1.4BFY2026
Figures from reported company fundamentals · as of Sep 1, 2026. TTM = trailing twelve months.
Quality Score breakdown
Overall quality78/100
Of which business quality 77
· Market factors (momentum, volatility) 73
Profitability55
Margins and returns on capital today
Quality Growth26
Are margins and returns improving?
Cashflow98
Earnings quality: real cash, not paper profit
Fin. Strength87
Balance sheet, leverage, solvency risk
Investment98
Disciplined investing over empire-building
Low Volatility92
Calm price path (market factor)
Momentum55
Price trend over the last 3–12 months (market factor)
52W Momentum83
Distance to the 52-week high (market factor)
Net Issuance100
Buybacks instead of dilution
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.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
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.
Growth Quality 81/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
$7.5B
Latest YoY
+0.9%
Avg. revenue growth/yr (3Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.5%
Avg. revenue growth/yr (5Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.0%
Avg. revenue growth/yr (36Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.8%
Value creation/yr (5Y) ⓘEarnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+4.5%
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+4.1%
Dividend yield0.4%
Trend ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5Y 4.1% vs 10Y 1.3%, steady
Operating margin (EBIT) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.18.6% (2021) → 15.4% (2026) · falling
Worst earnings drop783% (2009) (loss year, drop beyond 100%) · in USD
Revenue+1.9%/yr
FY22$7.0B
FY23$7.4B
FY24$7.6B
FY25$7.5B
FY26$7.5B
Net income+3.0%/yr
FY22$789M
FY23$802M
FY24$1.3B
FY25$1.1B
FY26$887M
Character of growth · EPS growth decomposed (2015-2026)+3.3 % p.a.
Revenue per share+8.1 %
of which total revenue +5.6 % · buybacks/dilution +2.3 %
EBIT margin−2.0 %
Tax rate−3.1 %
Residual (interest, one-offs)+0.7 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
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
Quality Score78 · Top 25%
Fair Value upside−54% · Bottom 25%
Profitability
Return on equity (TTM)13% · Above median
Return on assets6% · Above median
Net margin (TTM)12% · Above median
Operating margin (TTM)24% · Top 25%
Growth and dividend
Revenue growth12% · Above median
Dividend yield (TTM)0.4% · Bottom 25%
Balance sheet
Debt / equity0.22× · Highest 25%
Valuation Multiples vs Electronic Gaming & Multimedia median · lower = cheaper
P/E (TTM)59.7× · Priciest 25%
P/B7.66× · Priciest 25%
P/S (TTM)6.88× · Priciest 25%
P/FCF22.3× · Priciest 25%
EV/EBITDA34.0× · Priciest 25%
PEG1.28× · Pricier than median
What the price implies (reverse DCF)
The inverse question: what free-cash-flow growth must Electronic Arts Inc deliver for ten years so that today's price is fair in our DCF model? Same formula, same discount rate as the fair value.
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.
This stockSector peers
VALUE0· sector 24
FUTURE60· sector 6
PAST54· sector 15
HEALTH89· sector 100
DIVIDEND7· sector 57
VALUE 0: the price sits above our fair-value range.
Insider activity: 42/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
None of the checked exposures detected
Similar stocks
10 more Electronic Gaming & Multimedia stocks, each showing price versus our Fair Value estimate (as of Sep 1, 2026).
Is Electronic Arts Inc (EA) overvalued or undervalued?
As of Sep 1, 2026, our model estimates a fair value of $76.57 versus the last price from Aug 10, 2026 of $209.70, about −63% upside (overvalued).
What is the fair value of EA?
Our model-based fair value for Electronic Arts Inc is $76.57 (as of Sep 1, 2026), built from audited fundamentals. Last price (from Aug 10, 2026): $209.70.
What is the quality score of EA?
Electronic Arts Inc has a Quality Score of 78/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Electronic Arts Inc (EA)?
Our model-based price target is the fair value of $76.57 (as of Sep 1, 2026) from 26 valuation models. Cautious scenario $58.37, optimistic scenario $94.33. It is a calculation from audited fundamentals, not an analyst target.
What is the Electronic Arts Inc stock forecast for 2026?
Our models put fair value at $76.57, about −63% upside versus the last price from Aug 10, 2026 of $209.70 (overvalued). Cautious scenario $58.37, optimistic scenario $94.33. The calculation is refreshed regularly with new filings.
What is the revenue of Electronic Arts Inc (EA)?
Electronic Arts Inc reported trailing-twelve-month revenue of about $7.5B (latest available figure, as of Sep 1, 2026).
What is the net profit margin of EA?
The net profit margin of Electronic Arts Inc is about 11.8%, meaning it keeps roughly 11.8% of revenue as net income. Based on the latest reported figures.
Does Electronic Arts Inc pay a dividend?
Electronic Arts Inc currently shows a dividend yield of about 0.36% relative to its recent price (as of Sep 1, 2026).
What growth is priced into Electronic Arts Inc (EA)?
For today's price to be fair in a discounted-cash-flow model, Electronic Arts Inc would have to grow free cash flow by +6.0 % per year for ten years (discount rate 8.2 %, then 2 % perpetual growth). Over the last 5 years revenue grew +6.0 % per year. As of Sep 1, 2026.
What discount rate (WACC) does the fair value of EA use?
Our models discount Electronic Arts Inc at 8.2 %: a base by market capitalisation (large), damped by beta 0.64. The same rate applies in all 26 models.
What is the intrinsic value of Electronic Arts Inc (EA)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Electronic Arts Inc it is $76.57 per share (as of Sep 1, 2026), against a price of $209.70. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Electronic Arts Inc stock overvalued or undervalued in 2026?
As of Sep 1, 2026, EA trades above its calculated fair value: price $209.70, fair value $76.57, a gap of about −63% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of EA?
No. The price is what the market pays today ($209.70); the fair value is what the company's own numbers justify ($76.57). For Electronic Arts Inc the two are $133.13 per share apart. That gap is exactly why we show both numbers side by side.
How much is Electronic Arts Inc worth?
The market values Electronic Arts Inc at about $51.8B (market capitalisation, as of Sep 1, 2026). Per share that is $209.70; our models calculate a fair value of $76.57 per share.
What do the bullish and bearish scenarios say about EA?
Our models span a range for Electronic Arts Inc: cautious scenario $58.37, base $76.57, optimistic $94.33 per share (as of Sep 1, 2026, price $209.70). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of EA?
Electronic Arts Inc trades at a price-to-earnings ratio of 59.7 (as of Sep 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $76.57 is built from several models across several years. Other multiples: PEG 1.3, P/B 7.7, P/S 6.9, EV/EBITDA 34.0.
What is the PEG ratio of EA?
The PEG ratio of Electronic Arts Inc is 1.28 (P/E divided by earnings growth, as of Sep 1, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Electronic Arts Inc (EA)?
Balance-sheet figures for Electronic Arts Inc (as of Sep 1, 2026): return on equity 13.5%, debt of 0.22 per unit of equity. They feed the Quality Score of 78/100, which measures business quality independently of the share price.
How far is EA from its 52-week high?
Electronic Arts Inc trades at $209.70, about 3% below its 52-week high of $204.50 and 45% above the low of $144.97 (as of Sep 1, 2026). Distance from the high says nothing about value: that is what the fair value of $76.57 is for.
Which stocks are comparable to Electronic Arts Inc?
From the same area (Communication Services) we also value Konami Group, NetEase, Inc, Take-Two Interactive Software, Inc, Roblox Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Electronic Arts Inc stock attractive at the current price?
The data as of Sep 1, 2026: price $209.70, calculated fair value $76.57 (−63%), Quality Score 78/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of EA calculated?
We run Electronic Arts Inc through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $76.57, with the spread shown as a cautious and an optimistic scenario.
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Electronic Arts Inc
EA · US