Electronic Arts Inc
NASDAQ:EA
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EV/EBITDA
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBITDA returns to its 3-Year Average (18.3), the stock would be worth $99.06 (51% downside from current price).
| Scenario | EV/EBITDA Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 37.5 | $202.56 |
0%
|
| 3-Year Average | 18.3 | $99.06 |
-51%
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| 5-Year Average | 19.5 | $105.27 |
-48%
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| Industry Average | 11.4 | $61.51 |
-70%
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| Country Average | 14.4 | $77.5 |
-62%
|
Forward EV/EBITDA
Today’s price vs future ebitda
| Today's Enterprise Value | EBITDA | Forward EV/EBITDA | ||
|---|---|---|---|---|
|
$48.8B
|
/ |
Jan 2026
$1.3B
|
= |
|
|
$48.8B
|
/ |
Mar 2026
$3B
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= |
|
|
$48.8B
|
/ |
Mar 2027
$3.2B
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= |
|
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$48.8B
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/ |
Mar 2028
$3.4B
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= |
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$48.8B
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/ |
Mar 2029
$3.5B
|
= |
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Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.
Peer Comparison
| Market Cap | EV/EBITDA | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
Electronic Arts Inc
NASDAQ:EA
|
50.6B USD | 37.5 | 74.5 | |
| US |
A
|
Activision Blizzard Inc
LSE:0H8X
|
74.1B USD | 24.6 | 34.2 | |
| CN |
|
NetEase Inc
NASDAQ:NTES
|
73.1B USD | 9.1 | 14.9 | |
| JP |
|
Nintendo Co Ltd
TSE:7974
|
9.7T JPY | 20.6 | 23.8 | |
| SG |
|
Sea Ltd
NYSE:SE
|
51.2B USD | 21.2 | 32.2 | |
| US |
|
Roblox Corp
NYSE:RBLX
|
40.8B USD | -38.9 | -38.3 | |
| US |
|
Take-Two Interactive Software Inc
NASDAQ:TTWO
|
37.3B USD | 38.4 | -9.4 | |
| CN |
Z
|
Zhejiang Century Huatong Group Co Ltd
SZSE:002602
|
120.7B CNY | 19.6 | 32 | |
| JP |
|
Konami Holdings Corp
TSE:9766
|
2.7T JPY | 16.4 | 31.3 | |
| JP |
N
|
Nexon Co Ltd
TSE:3659
|
2.1T JPY | 9.5 | 22.8 | |
| JP |
K
|
Konami Group Corp
XMUN:KOA
|
9.1B EUR | 9.4 | 19.2 |
Market Distribution
| Min | 0 |
| 30th Percentile | 10 |
| Median | 14.4 |
| 70th Percentile | 21.5 |
| Max | 1 767 274.1 |
Other Multiples
Electronic Arts Inc
Glance View
In the world of digital entertainment, Electronic Arts Inc., commonly known as EA, stands as a towering figure in the gaming industry. Founded in 1982 by Trip Hawkins, the company has evolved from a small studio catering to home computers into a global powerhouse that shapes how millions engage with interactive entertainment. EA’s strategy integrates both creativity and strategy, allowing it to establish a formidable presence across various gaming genres. Understanding its audience's pulse, EA has harnessed beloved franchises like FIFA, Madden NFL, and The Sims to capture the hearts of gamers worldwide. These game titles are not just products; they become part of cultural phenomena, distinguished by immersive gameplay and rich storytelling that hooks players for the long haul. EA’s business model is deeply entwined with the shifting dynamics of the industry, embracing digital transformation and pioneering new revenue streams. The company adeptly balances traditional video game sales with a robust digital sales model, encompassing downloadable content (DLC), in-game purchases, and subscription services like EA Play. As gaming becomes more connected, EA capitalizes on online multiplayer experiences and live services that continuously engage users and drive recurring revenue. This approach reflects a keen understanding of evolving consumer behaviors and the rising demand for online-first, community-driven content. By leveraging its intellectual properties and resilient digital strategy, EA ensures overarching growth and a consistent flow of revenue, positioning itself as a lynchpin in the competitive gaming landscape.
