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.

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

Inside the EA Numbers

EA Price
(Electronic Arts stock price per share)
$139.20
[?] 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 109% higher than other Technology stocks
[?] PE Ratio versus Industry 41% lower than other Electronic Gaming & Multimedia stocks
[?] Cash Yield 1.25%
[?] Free Cash Flow Jitter 50%
[?] Dividend Yield 0%
Shares Shorted 4,861,820

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 4,861,820 shares shorted. With 283,107,673 shares available for purchase and an average trading volume over the past 10 trading days of 2,457,285, it would take at least 1.979 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.