Should I Buy EA Stock in 2026?

Data-driven analysis and honest assessment for Electronic Arts Inc

Analysis Updated:
AVOIDSignificant risks outweigh potential rewards

Current Price: $204.25P/E: 59.2

Decision Score

3.7/10

Weak

Based on 6 fundamental factors

Score Breakdown:

Valuation (20%)2/10

Very high P/E of 59.2 suggests overvaluation

Growth (20%)3/10

Declining -0%

Profitability (20%)4/10

Thin margins (0% net)

Financial Health (15%)5/10

Financial health data limited

Cash Flow (15%)4/10

Low FCF yield of 2.1%

Insider Activity (10%)5/10

No recent insider activity

Key Investment Metrics

Current Price

$204.25

P/E Ratio

59.16

Revenue Growth

-0.1%

Profit Margin

0.1%

Market Cap

$51.0B

Dividend Yield

0.00%

How EA Compares to Competitors

Understanding how EA stacks up against peers helps inform your investment decision.

How EA Compares to Peers

Upcoming Events for EA

+5 Reasons TO Buy EA

1. High gross margins of 79%

strong

Gross margins above 50% typically indicate strong brand value or intellectual property moats.

-5 Reasons NOT to Buy EA

1. Thin profit margins of 0.1%

high risk

Low margins provide little cushion against cost increases or pricing pressure.

2. Expensive valuation at 59x earnings

medium risk

P/E of 59 is significantly above averages. High expectations leave little room for disappointment.

3. Revenue declining 0%

medium risk

Shrinking revenue suggests loss of market share or weakening demand. Turnarounds are difficult.

4. High PEG ratio of 2.1

medium risk

PEG above 2 suggests expensive relative to growth rate.

Who Should Buy EA?

Investment Profile

Risk Level

High

Recommended Holding Period

3-5 years

Best For:

  • Momentum Traders

    High-growth profile attracts momentum

Not Suitable For:

  • Growth Investors

    Limited -0% growth may disappoint

  • Value Investors

    Premium P/E of 59 doesn't fit value criteria

  • Income-Focused Retirees

    Low 0.0% yield

  • Risk-Averse Investors

    High risk may cause uncomfortable volatility

Consider These Alternatives

If you're interested in EA, compare these Communication Services peers:

Pro tip: Compare EA directly with competitors using our comparison tool to see which stock better fits your criteria.

Get the Full Picture

Access AI-powered insights, DCF valuations, insider trading data, and real-time analysis for EA

Frequently Asked Questions

What is EA stock price today?

EA (Electronic Arts Inc) stock is trading at $204.25 as of the latest market data. Stock prices update in real-time during market hours (9:30 AM - 4:00 PM ET).

Is EA stock going up or down today?

EA stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.

Should I buy EA stock now?

The decision to buy EA depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.

Is EA a buy, hold, or sell right now?

Our AI-powered analysis provides buy/hold/sell recommendations for EA based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.

Is EA stock overvalued or undervalued?

EA currently trades at a P/E ratio of 59.16, which may indicate premium valuation. Our DCF calculator provides intrinsic value estimates to help determine if EA is fairly priced.

What is EA's P/E ratio?

EA has a price-to-earnings (P/E) ratio of 59.16, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.

What is EA's market cap?

EA (Electronic Arts Inc) has a market capitalization of $51.05 billion, making it a mid-cap stock.

What is EA's price to book ratio?

EA trades at a price-to-book (P/B) ratio of 8.51, which compares the stock price to the company's book value per share. A P/B below 1.0 may indicate undervaluation, while above 3.0 may suggest premium pricing.

Similar Investment Decisions

Explore investment analyses for stocks similar to Electronic Arts Inc

Explore Categories

Disclaimer

This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.