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Electronic Arts (FRA:ERT) PB Ratio : 4.62 (As of Apr. 27, 2024)


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What is Electronic Arts PB Ratio?

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2024-04-27), Electronic Arts's share price is €119.06. Electronic Arts's Book Value per Share for the quarter that ended in Dec. 2023 was €25.76. Hence, Electronic Arts's PB Ratio of today is 4.62.

Good Sign:

Electronic Arts Inc stock PB Ratio (=4.55) is close to 1-year low of 4.37

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

FRA:ERT' s PB Ratio Range Over the Past 10 Years
Min: 2.39   Med: 5.04   Max: 9.77
Current: 4.55

During the past 13 years, Electronic Arts's highest PB Ratio was 9.77. The lowest was 2.39. And the median was 5.04.

FRA:ERT's PB Ratio is ranked worse than
82.99% of 541 companies
in the Interactive Media industry
Industry Median: 1.86 vs FRA:ERT: 4.55

During the past 12 months, Electronic Arts's average Book Value Per Share Growth Rate was 2.30% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 1.00% per year. During the past 5 years, the average Book Value Per Share Growth Rate was 12.70% per year. During the past 10 years, the average Book Value Per Share Growth Rate was 16.10% per year.

During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Electronic Arts was 44.50% per year. The lowest was -17.40% per year. And the median was 16.60% per year.

Back to Basics: PB Ratio


Electronic Arts PB Ratio Historical Data

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

Electronic Arts Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.72 3.91 5.03 4.64 4.37

Electronic Arts Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 4.39 4.37 4.82 4.28 4.78

Competitive Comparison of Electronic Arts's PB Ratio

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

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

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



Electronic Arts PB Ratio Calculation

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.

Electronic Arts's PB Ratio for today is calculated as follows:

PB Ratio=Share Price/Book Value per Share (Q: Dec. 2023)
=119.06/25.757
=4.62

* 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.

It can also be calculated from the numbers for the whole company:

A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.


Electronic Arts  (FRA:ERT) PB Ratio Explanation

Unlike valuation ratios relative to the earning power such as PE Ratio, PE Ratio without NRI, PS Ratio, Price-to-Operating-Cash-Flow , or Price-to-Free-Cash-Flow, the PB Ratio measures the valuation of the stock relative to the underlying asset of the company.

The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.


Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.


Electronic Arts PB 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.

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