This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
Median PS Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median PS Ratio. Electronic Arts's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was €26.02. Electronic Arts's 10-Year median PS Ratio is 5.6311. Therefore, the Median PS Value for today is €146.52.
As of today (2024-04-27), Electronic Arts's share price is €119.06. Electronic Arts's Median PS Value is €146.52. Therefore, Electronic Arts's Price to Median PS Value for today is 0.81.
The historical rank and industry rank for Electronic Arts's Median PS Value or its related term are showing as below:
FRA:ERT'
s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.78 Med: 1.53 Max: 4.15
Current: 0.81
During the past 13 years, the highest Price to Median PS Value of Electronic Arts was 4.15. The lowest was 0.78. And the median was 1.53.
FRA:ERT's Price-to-Median-PS-Value is ranked worse than 57.51% of 193
companies
in the Interactive Media industry
Industry Median: 0.72
vs FRA:ERT: 0.81
Electronic Arts Median PS Value Historical Data
The historical data trend for Electronic Arts's Median PS Value 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.
Competitive Comparison of Electronic Arts's Median PS Value
For the Electronic Gaming & Multimedia subindustry, Electronic Arts's Price-to-Median-PS-Value, along with its competitors' market caps and Price-to-Median-PS-Value 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 Price-to-Median-PS-Value Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Electronic Arts's Price-to-Median-PS-Value distribution charts can be found below:
* The bar in red indicates where Electronic Arts's Price-to-Median-PS-Value falls into.
Electronic Arts Median PS Value Calculation
Electronic Arts's Median PS Value for today is calculated as
10-Year Median PS Ratio is 5.6311.
Electronic Arts's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was €26.02.
* 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 (FRA:ERT) Median PS Value Explanation
This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio
is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.
Electronic Arts's Price to Median PS Value for today is calculated as
Price to Median PS Value
=
Share Price
/
Median PS Value
=
119.06
/
146.52
=
0.81
* 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 Median PS Value Related Terms
Thank you for viewing the detailed overview of Electronic Arts's Median PS Value provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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