Is Electronic Arts Inc. (EA) Undervalued?
Based on the current stock price of $204.79 and a P/E ratio of 59.53,Electronic Arts Inc. has a PEG ratio of 1.55.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 1.55, EA appears to be fairly valued relative to its growth rate of 38.47%.
Based on a PEG ratio of 1.53 (adjusted for dividends).
Compare EA vs Competitors
Use the calculator below to see how EA stacks up against other stocks in the same industry.
How we analyzed EA
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 59.53and dividing it by the annual growth rate of 38.47%.
PEG = 59.53 (P/E) ÷ 38.47 (Growth) = 1.55
Frequently Asked Questions about EA
What is the current PEG Ratio for Electronic Arts Inc. (EA)?+
The current PEG Ratio for Electronic Arts Inc. is 1.55. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is EA stock undervalued right now?+
Based on the PEG ratio of 1.55, Electronic Arts Inc. appears to be fairly valued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for EA?+
The PEGY ratio for Electronic Arts Inc. is 1.53. This metric accounts for dividend yield (0.37%), providing a more complete valuation picture.