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Electronic Arts (Electronic Arts) Cyclically Adjusted PB Ratio : 5.75 (As of Apr. 27, 2024)


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What is Electronic Arts Cyclically Adjusted PB Ratio?

As of today (2024-04-27), Electronic Arts's current share price is $127.90. Electronic Arts's Cyclically Adjusted Book per Share for the quarter that ended in Dec. 2023 was $22.26. Electronic Arts's Cyclically Adjusted PB Ratio for today is 5.75.

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

EA' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 1.67   Med: 7.6   Max: 14.21
Current: 5.74

During the past years, Electronic Arts's highest Cyclically Adjusted PB Ratio was 14.21. The lowest was 1.67. And the median was 7.60.

EA's Cyclically Adjusted PB Ratio is ranked worse than
88.11% of 286 companies
in the Interactive Media industry
Industry Median: 1.555 vs EA: 5.74

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Electronic Arts's adjusted book value per share data for the three months ended in Dec. 2023 was $28.088. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $22.26 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Electronic Arts Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Electronic Arts's Cyclically Adjusted PB 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 Cyclically Adjusted PB Ratio Chart

Electronic Arts Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.28 7.98 9.19 7.09 5.86

Electronic Arts Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted PB 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 6.17 5.86 6.12 5.51 6.15

Competitive Comparison of Electronic Arts's Cyclically Adjusted PB Ratio

For the Electronic Gaming & Multimedia subindustry, Electronic Arts's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB 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 Cyclically Adjusted PB Ratio Distribution in the Interactive Media Industry

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

* The bar in red indicates where Electronic Arts's Cyclically Adjusted PB Ratio falls into.



Electronic Arts Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Electronic Arts's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=127.90/22.26
=5.75

* 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 Cyclically Adjusted Book per Share for the quarter that ended in Dec. 2023 is calculated as:

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

Adj_Book=Book Value per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=28.088/129.4194*129.4194
=28.088

Current CPI (Dec. 2023) = 129.4194.

Electronic Arts Quarterly Data

Book Value per Share CPI Adj_Book
201403 7.788 99.695 10.110
201406 8.668 100.560 11.156
201409 8.558 100.428 11.029
201412 8.668 99.070 11.323
201503 9.794 99.621 12.724
201506 10.727 100.684 13.789
201509 10.116 100.392 13.041
201512 9.716 99.792 12.601
201603 11.282 100.470 14.533
201606 12.346 101.688 15.713
201609 12.027 101.861 15.281
201612 11.560 101.863 14.687
201703 13.182 102.862 16.585
201706 14.518 103.349 18.180
201709 14.247 104.136 17.706
201712 13.309 104.011 16.560
201803 15.016 105.290 18.457
201806 17.246 106.317 20.994
201809 17.490 106.507 21.253
201812 17.754 105.998 21.677
201903 17.889 107.251 21.587
201906 21.909 108.070 26.237
201909 24.430 108.329 29.186
201912 24.869 108.420 29.686
202003 25.906 108.902 30.787
202006 26.918 108.767 32.029
202009 27.845 109.815 32.816
202012 27.649 109.897 32.561
202103 27.413 111.754 31.746
202106 27.116 114.631 30.614
202109 27.662 115.734 30.933
202112 27.011 117.630 29.718
202203 27.232 121.301 29.055
202206 27.387 125.017 28.351
202209 28.152 125.227 29.095
202212 27.458 125.222 28.378
202303 26.714 127.348 27.149
202306 26.988 128.729 27.133
202309 28.072 129.860 27.977
202312 28.088 129.419 28.088

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

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  (NAS:EA) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Electronic Arts Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of Electronic Arts's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Electronic Arts (Electronic Arts) Business Description

Traded in Other Exchanges
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.
Executives
Jacob J. Schatz officer: General Counsel & Corp Sect'y C/O ELECTRONIC ARTS INC., 209 REDWOOD SHORES PKWY, REDWOOD CITY CA 94061
Laura Miele officer: Chief Studios Officer 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Vijayanthimala Singh officer: Chief People Officer C/O ELECTRONIC ARTS INC., 209, REDWOOD CITY CA 94065
Andrew Wilson director, officer: Chief Executive Officer 209 REDWOOD SHORES PKWY, REDWOOD CITY CA 94065
Stuart Canfield officer: Chief Financial Officer 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Richard A Simonson director C/O SILVER SPRING NETWORKS, INC., 230 W. TASMAN DRIVE, SAN JOSE CA 95134
Luis A Ubinas director 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065-1175
Eric Charles Kelly officer: Chief Accounting Officer 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Chris Bruzzo officer: Chief Marketing Officer 411 FIRST AVE., SOUTH, SUITE 700, SEATTLE WA 98104
Kenneth A Moss officer: Chief Technology Officer 209 REDWOOD SHORES PKWY, REDWOOD CITY CA 94061
Chris Suh officer: Chief Financial Officer C/O CARDLYTICS, INC., 675 PONCE DE LEON AVE. NE, STE 6000, ATLANTA GA 30308
Blake J Jorgensen officer: COO & CFO 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Rachel A Gonzalez director 3150 SABRE DRIVE, SOUTHLAKE TX 76092
Kofi A Bruce director GENERAL MILLS, INC., ONE GENERAL MILLS BLVD., MINNEAPOLIS MN 55426
Jay C Hoag director 250 MIDDLEFIELD ROAD, MENLO PARK CA 94025