Electronic Arts Overview
Latest P/E ratio for Electronic Arts: 59.12 — see history and peer comparisons.
Get informed when a big investor buys or sells
+ Follow59.12
The P/E ratio compares a company's stock price to its earnings per share. A lower P/E ratio may indicate that the stock is undervalued.
Electronic Arts posts a P/E ratio of 59.12. That is above the Technology sector average of 34.62. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.
For Technology stocks, a P/E ratio near 34.62 is typical. Electronic Arts's 59.12 is higher that level. That is roughly 70.8% above the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.
Electronic Arts's P/E ratio of 59.12 comes from dividing a price-based measure by a related financial statistic. Changes can come from the stock price moving, the underlying fundamental shifting, or both. Track both the level and the trend — a rising multiple on falling fundamentals is a different story than a rising multiple on rising earnings.
Context for EA's P/E ratio usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 34.62), and (3) consistency with growth and profitability. This page covers the first two; Electronic Arts's other metric pages and overview cover the third.
Judging Electronic Arts against Technology peers is usually better than using a market-wide rule of thumb. Business models inside Technology are more comparable, which makes gaps in P/E ratio easier to interpret. Start with 59.12 here, then scan peer and history charts to see if the gap is persistent.
