Electronic Arts Stock Fundamentals

ERT Stock  EUR 143.84  3.50  2.49%   
Electronic Arts fundamentals help investors to digest information that contributes to Electronic Arts' financial success or failures. It also enables traders to predict the movement of Electronic Stock. The fundamental analysis module provides a way to measure Electronic Arts' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Electronic Arts stock.
  
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Electronic Arts Company Operating Margin Analysis

Electronic Arts' Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Operating Margin

 = 

Operating Income

Revenue

X

100

More About Operating Margin | All Equity Analysis

Current Electronic Arts Operating Margin

    
  0.22 %  
Most of Electronic Arts' fundamental indicators, such as Operating Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Electronic Arts is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Competition

Based on the recorded statements, Electronic Arts has an Operating Margin of 0.2173%. This is 102.46% lower than that of the Technology sector and 94.43% lower than that of the Electronic Gaming & Multimedia industry. The operating margin for all Germany stocks is 103.94% lower than that of the firm.

Electronic Arts Fundamental Drivers Relationships

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. You can analyze the relationship between different fundamental ratios across Electronic Arts competition to find correlations between indicators driving Electronic Arts's intrinsic value. More Info.
Electronic Arts is rated # 5 in return on equity category among its peers. It also is rated # 5 in return on asset category among its peers reporting about  0.53  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Electronic Arts is roughly  1.87 . 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 Operating Margin Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Electronic Arts' direct or indirect competition against its Operating Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Electronic Arts could also be used in its relative valuation, which is a method of valuing Electronic Arts by comparing valuation metrics of similar companies.
Electronic Arts is rated below average in operating margin category among its peers.

Electronic Fundamentals

About Electronic Arts Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Electronic Arts's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Electronic Arts using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Electronic Arts based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. Electronic Arts Inc. was founded in 1982 and is headquartered in Redwood City, California. EL ARTS operates under Electronic Gaming Multimedia classification in Germany and is traded on Frankfurt Stock Exchange. It employs 9700 people.

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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' 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 to better understand how to build diversified portfolios, which includes a position in Electronic Arts. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
For more detail on how to invest in Electronic Stock please use our How to Invest in Electronic Arts guide.
You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Please note, there is a significant difference between Electronic Arts' value and its price as these two are different measures arrived at by different means. Investors typically determine if Electronic Arts is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Electronic Arts' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.