Electronic Arts Stock Price and Value Analysis

Should you buy Electronic Arts stock? (NasdaqGS:EA). Let's see how it does in our automated value investing analysis system.

EA Free Cash Flow Trend

Free Cash Flow trendline for EA
Free Cash Flow trendline for Electronic Arts

Based on historical returns, we believe that Electronic Arts can grow its free cash at a rate of about 1%. That's positive!

AdvantagesDisadvantages
  • This company is very stable.
  • This stock looks overpriced.
  • This company is making money at a modest rate.
  • This company has a low dividend yield.
  • This company has wild ups and downs.

Inside the EA Numbers

EA Price
(Electronic Arts stock price per share)
$132.60
[?] EA Fair Price
(based on intrinsic value)
$36.08
[?] EA Safety Price (based on a variable margin of safety) $28.86
[?] PE Ratio versus Sector 99% higher than other Technology stocks
[?] PE Ratio versus Industry 41% lower than other Electronic Gaming & Multimedia stocks
[?] Cash Yield 1.31%
[?] Free Cash Flow Jitter 51%
[?] Dividend Yield 1%
Shares Shorted 6,409,595

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 6,409,595 shares shorted. With 286,265,556 shares available for purchase and an average trading volume over the past 10 trading days of 3,102,442, it would take at least 2.066 days for all of the short holders to cover their shorts.

Is Electronic Arts Stock on Sale?

We believe that Electronic Arts may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Electronic Arts looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy EA Stock?

Does Electronic Arts have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.