ELECTRONIC ARTS Net Income vs. Market Capitalization
| ERT Stock | EUR 156.78 0.46 0.29% |
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 Market Capitalization vs. Net Income 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 below average in net income category among its peers. It also is rated below average in market capitalization category among its peers creating about 39.88 of Market Capitalization per Net Income. 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's earnings, one of the primary drivers of an investment's value.ELECTRONIC Market Capitalization vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
ELECTRONIC ARTS |
| = | 789 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
ELECTRONIC ARTS |
| = | 31.46 B |
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.
ELECTRONIC Market Capitalization vs Competition
ELECTRONIC ARTS is rated below average in market capitalization category among its peers. Market capitalization of Other industry is currently estimated at about 19.57 Trillion. ELECTRONIC ARTS adds roughly 31.46 Billion in market capitalization claiming only tiny portion of all equities under Other industry.
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's 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?
Run Adviser Favorites Thematic Idea Now
Adviser Favorites
Financial advisors frequently recommend that individuals diversify their investment portfolios with a mix of different types of stocks. These can include blue-chip stocks, growth stocks, and dividend stocks. The Adviser Favorites theme has 17 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Adviser Favorites Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Information and Resources on Investing in ELECTRONIC Stock
When determining whether ELECTRONIC ARTS offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of ELECTRONIC ARTS's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Electronic Arts Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Electronic Arts Stock:Check out Investing Opportunities. For information on how to trade ELECTRONIC Stock refer to our How to Trade ELECTRONIC Stock guide.You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
To fully project ELECTRONIC ARTS's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ELECTRONIC ARTS at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include ELECTRONIC ARTS's income statement, its balance sheet, and the statement of cash flows.