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Electronic Arts (FRA:ERT) Shiller PE Ratio : 28.01 (As of Apr. 27, 2024)


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What is Electronic Arts Shiller PE Ratio?

As of today (2024-04-27), Electronic Arts's current share price is €119.06. Electronic Arts's E10 for the quarter that ended in Dec. 2023 was €4.25. Electronic Arts's Shiller PE Ratio for today is 28.01.

The historical rank and industry rank for Electronic Arts's Shiller PE Ratio or its related term are showing as below:

FRA:ERT' s Shiller PE Ratio Range Over the Past 10 Years
Min: 26.18   Med: 44.18   Max: 1041.09
Current: 27.08

During the past years, Electronic Arts's highest Shiller PE Ratio was 1041.09. The lowest was 26.18. And the median was 44.18.

FRA:ERT's Shiller PE Ratio is ranked worse than
59.55% of 178 companies
in the Interactive Media industry
Industry Median: 22.955 vs FRA:ERT: 27.08

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Electronic Arts's adjusted earnings per share data for the three months ended in Dec. 2023 was €0.981. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is €4.25 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Electronic Arts Shiller PE Ratio Historical Data

The historical data trend for Electronic Arts's Shiller PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Electronic Arts Shiller PE Ratio Chart

Electronic Arts Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 73.96 37.45 43.12 34.50 29.38

Electronic Arts Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Shiller PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 29.30 29.38 30.89 26.76 28.96

Competitive Comparison of Electronic Arts's Shiller PE Ratio

For the Electronic Gaming & Multimedia subindustry, Electronic Arts's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Electronic Arts's Shiller PE Ratio Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Electronic Arts's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Electronic Arts's Shiller PE Ratio falls into.



Electronic Arts Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Electronic Arts's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=119.06/4.25
=28.01

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Electronic Arts's E10 for the quarter that ended in Dec. 2023 is calculated as:

For example, Electronic Arts's adjusted earnings per share data for the three months ended in Dec. 2023 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=0.981/129.4194*129.4194
=0.981

Current CPI (Dec. 2023) = 129.4194.

Electronic Arts Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201403 0.831 99.695 1.079
201406 0.765 100.560 0.985
201409 0.008 100.428 0.010
201412 0.357 99.070 0.466
201503 1.100 99.621 1.429
201506 1.176 100.684 1.512
201509 -0.401 100.392 -0.517
201512 -0.129 99.792 -0.167
201603 2.505 100.470 3.227
201606 1.246 101.688 1.586
201609 -0.116 101.861 -0.147
201612 -0.003 101.863 -0.004
201703 1.692 102.862 2.129
201706 1.833 103.349 2.295
201709 -0.059 104.136 -0.073
201712 -0.507 104.011 -0.631
201803 1.581 105.290 1.943
201806 0.813 106.317 0.990
201809 0.711 106.507 0.864
201812 0.756 105.998 0.923
201903 0.611 107.251 0.737
201906 4.204 108.070 5.035
201909 2.624 108.329 3.135
201912 1.062 108.420 1.268
202003 1.294 108.902 1.538
202006 1.110 108.767 1.321
202009 0.535 109.815 0.631
202012 0.592 109.897 0.697
202103 0.218 111.754 0.252
202106 0.589 114.631 0.665
202109 0.867 115.734 0.970
202112 0.204 117.630 0.224
202203 0.726 121.301 0.775
202206 1.050 125.017 1.087
202209 1.081 125.227 1.117
202212 0.689 125.222 0.712
202303 -0.037 127.348 -0.038
202306 1.357 128.729 1.364
202309 1.377 129.860 1.372
202312 0.981 129.419 0.981

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Electronic Arts  (FRA:ERT) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Electronic Arts Shiller PE Ratio Related Terms

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Electronic Arts (FRA:ERT) Business Description

Address
209 Redwood Shores Parkway, Redwood City, CA, USA, 94065
EA is one of the world's largest third-party video game publishers and has transitioned from a console-based video game publisher to the one of the largest publishers on consoles, PC, and mobile. The firm owns number of large franchises, including Madden, EA Sports FC, Battlefield, Apex Legends, Mass Effect, Dragon's Age, and Need for Speed.

Electronic Arts (FRA:ERT) Headlines

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