Electronic Arts Inc. · Electronic Gaming & Multimedia
FCF$2.3bB
Rev+0.9%C
D/E0.27A-
P/E59.7xC
PEG1.30B
40Score
$209.70$52.9B
1Y Target$205.79Analyst consensus · 14 analysts
5Y Target$301.29Compound horizon
10Y Target$446.94Long-dated conviction
FCF$2.3bTTM · 03/26B
FCF $2.3b — solid, comfortably covers operations and capital return · TTM computed from 4 most-recent quarters (TTM · 03/26).
Rev+0.9%FY YoYC
Revenue +0.9% — flat, mature phase or headwinds present · Computed from last two annual revenue figures (FY YoY).
D/E0.27A-
D/E 0.27 — less debt than most Communication Services peers (≈25th pctile)
P/E59.7xC
P/E 59.7 — expensive vs Communication Services peers (≈90th pctile)
PEG1.30B
PEG 1.30 — acceptable premium for growth
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 40
Quality0.79
Growth0.33
Value0.25
Why this score
Durable high returns
Entry · Margin of safety
52-week rangeNear 52-week high
0% off the 12-month high
vs DCF fair value2% belowest. fair value ~$214
What the price assumes: free cash flow compounding at ~6% a year for the next decade — vs the ~9% a year our model projects from current growth and analyst estimates.
Quality signals · context only
ROIC15.7% · A-return on invested capital — not score-weighted
Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.
Why now
Electronic Gaming & Multimedia · market cap $52.9b. Trading near 52-week high of $210.20 — momentum setup, limited technical margin of safety. 14 sell-side analysts rate this a Hold with a mean 1-yr target of $205.79 (implying -2% upside).
Moat
ROE 15% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong. $52.9b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
Trailing P/E 59.7x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Trading within 0% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction.
Horizon
1-3 yr $205.79 (14-analyst consensus) — fundamentals + valuation re-rating. 5 yr $301.29 at ~8% CAGR — compounding case rests on the competitive position widening. 10 yr $446.94 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
EA vs the Top Picks average
Pillar
EA
Book avg
Diff
Quality
0.79
0.83
-0.05
Growth
0.33
0.92
-0.59
Value
0.25
0.75
-0.50
Averaged across the 30 names in today's Top Picks (mean score 82.4). A name can beat these averages and still be absent from the book — it also applies concentration limits.
Score history · EA
Trend
-3.4 over 36 daily scores
From 43.4 (Jun 22) → 40.0 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · EA
$
%
%
Shares to buy
9
Position size
$1,887
3.8% of portfolio
Stop price
$157.27
25% below $209.70
$ at risk if stopped
$471.82
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Electronic Arts Inc. (EA): score, valuation & FAQ
Electronic Arts Inc. (EA) is a Electronic Gaming & Multimedia company that scores 40 out of 100 on the Bull Rankings quality-growth model — a below-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are D/E (A-). On valuation, EA sits close to our DCF fair-value estimate (within a few percent) — the current price implies roughly 6% annual free-cash-flow growth over the next decade.
Is EA a good stock to buy?
Bull Rankings scores EA 40 out of 100 on its quality-growth model, which is a below-average reading. That is driven by D/E (A-). A score is a quantitative screen of Electronic Arts Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does EA score 40 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). EA earns its highest marks on D/E (A-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is EA overvalued or undervalued?
Based on $209.70, EA sits close to our DCF fair-value estimate (within a few percent) — the current price implies roughly 6% annual free-cash-flow growth over the next decade. It trades at a 59.7x× P/E (graded C). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in EA?
Trailing P/E 59.7x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Trading within 0% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.