Electronic Arts Book Value Per Share vs. Revenue
| 0IFX Stock | 159.22 3.74 2.30% |
For Electronic Arts profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Electronic Arts to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Electronic Arts utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Electronic Arts's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Electronic Arts over time as well as its relative position and ranking within its peers.
Electronic |
Electronic Arts Revenue vs. Book Value Per Share Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Electronic Arts's current stock value. Our valuation model uses many indicators to compare Electronic Arts value to that of its competitors to determine the firm's financial worth. Electronic Arts is rated fourth in book value per share category among its peers. It is rated third in revenue category among its peers totaling about 266,633,512 of Revenue per Book Value Per Share. At this time, Electronic Arts' Total Revenue is comparatively stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Electronic Arts' earnings, one of the primary drivers of an investment's value.Electronic Revenue vs. Book Value Per Share
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
Electronic Arts |
| = | 28.15 X |
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Electronic Arts |
| = | 7.51 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Electronic Revenue vs Competition
Electronic Arts is rated third in revenue category among its peers. Market size based on revenue of Industrials industry is presently estimated at about 86.53 Billion. Electronic Arts holds roughly 7.51 Billion in revenue claiming about 9% of equities under Industrials industry.
Electronic Arts Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Electronic Arts, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Electronic Arts will eventually generate negative long term returns. The profitability progress is the general direction of Electronic Arts' change in net profit over the period of time. It can combine multiple indicators of Electronic Arts, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -72 M | -68.4 M | |
| Operating Income | 1.6 B | 1.1 B | |
| Income Before Tax | 1.6 B | 1.1 B | |
| Total Other Income Expense Net | -15 M | -14.2 M | |
| Net Income | 1.3 B | 1.1 B | |
| Income Tax Expense | 316 M | 331.8 M | |
| Interest Income | 35.6 M | 44.4 M | |
| Net Income Applicable To Common Shares | 907.4 M | 1.4 B | |
| Change To Netincome | 659 M | 418 M |
Electronic Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Electronic Arts. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Electronic Arts position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Electronic Arts' important profitability drivers and their relationship over time.
Use Electronic Arts in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Electronic Arts position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Electronic Arts will appreciate offsetting losses from the drop in the long position's value.Electronic Arts Pair Trading
Electronic Arts Pair Trading Analysis
The ability to find closely correlated positions to Electronic Arts could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Electronic Arts when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Electronic Arts - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Electronic Arts to buy it.
The correlation of Electronic Arts is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Electronic Arts moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Electronic Arts moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Electronic Arts can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Electronic Arts position
In addition to having Electronic Arts in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Companies making housewares accessories and providing houseware services. The Housewares theme has 39 constituents at this time.
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Additional Tools for Electronic Stock Analysis
When running Electronic Arts' price analysis, check to measure Electronic Arts' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Electronic Arts is operating at the current time. Most of Electronic Arts' value examination focuses on studying past and present price action to predict the probability of Electronic Arts' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Electronic Arts' price. Additionally, you may evaluate how the addition of Electronic Arts to your portfolios can decrease your overall portfolio volatility.