ELECTRONIC ARTS Valuation
| ERT Stock | EUR 130.60 1.10 0.85% |
At this time, the firm appears to be overvalued. ELECTRONIC ARTS shows a prevailing Real Value of €119.72 per share. The current price of the firm is €130.6. Our model computes the value of ELECTRONIC ARTS from analyzing the firm fundamentals such as price to sales of 4.87 X, and EBITDA of 1.62 B as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that ELECTRONIC ARTS's price fluctuation is very steady at this time. Calculation of the real value of ELECTRONIC ARTS is based on 3 months time horizon. Increasing ELECTRONIC ARTS's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the ELECTRONIC stock is determined by what a typical buyer is willing to pay for full or partial control of ELECTRONIC ARTS. Since ELECTRONIC ARTS is currently traded on the exchange, buyers and sellers on that exchange determine the market value of ELECTRONIC Stock. However, ELECTRONIC ARTS's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 130.6 | Real 119.72 | Hype 130.6 | Naive 133.14 |
The real value of ELECTRONIC Stock, also known as its intrinsic value, is the underlying worth of ELECTRONIC ARTS Company, which is reflected in its stock price. It is based on ELECTRONIC ARTS's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of ELECTRONIC ARTS's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of ELECTRONIC ARTS helps investors to forecast how ELECTRONIC stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of ELECTRONIC ARTS more accurately as focusing exclusively on ELECTRONIC ARTS's fundamentals will not take into account other important factors: ELECTRONIC ARTS Total Value Analysis
ELECTRONIC ARTS is currently anticipated to have takeover price of 32.69 B with market capitalization of 31.46 B, debt of 1.88 B, and cash on hands of . Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the ELECTRONIC ARTS fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
32.69 B | 31.46 B | 1.88 B |
ELECTRONIC ARTS Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of ELECTRONIC indicates not a very effective usage of assets in March.ELECTRONIC ARTS Profitability Analysis
The company reported the revenue of 6.99 B. Net Income was 789 M with profit before overhead, payroll, taxes, and interest of 0.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates ELECTRONIC ARTS's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in ELECTRONIC ARTS and how it compares across the competition.
About ELECTRONIC ARTS Valuation
The stock valuation mechanism determines ELECTRONIC ARTS's current worth on a weekly basis. Our valuation model uses a comparative analysis of ELECTRONIC ARTS. We calculate exposure to ELECTRONIC ARTS's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of ELECTRONIC ARTS's related companies.8 Steps to conduct ELECTRONIC ARTS's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates ELECTRONIC ARTS's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct ELECTRONIC ARTS's valuation analysis, follow these 8 steps:- Gather financial information: Obtain ELECTRONIC ARTS's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine ELECTRONIC ARTS's revenue streams: Identify ELECTRONIC ARTS's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research ELECTRONIC ARTS's industry and market trends, including the size of the market, growth rate, and competition.
- Establish ELECTRONIC ARTS's growth potential: Evaluate ELECTRONIC ARTS's management, business model, and growth potential.
- Determine ELECTRONIC ARTS's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate ELECTRONIC ARTS's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Complementary Tools for ELECTRONIC Stock analysis
When running ELECTRONIC ARTS's price analysis, check to measure ELECTRONIC ARTS's 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's value examination focuses on studying past and present price action to predict the probability of ELECTRONIC ARTS's 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's price. Additionally, you may evaluate how the addition of ELECTRONIC ARTS to your portfolios can decrease your overall portfolio volatility.
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