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Electronic Arts (XTER:ERT) Cyclically Adjusted PS Ratio : 5.62 (As of May. 22, 2024)


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What is Electronic Arts Cyclically Adjusted PS Ratio?

As of today (2024-05-22), Electronic Arts's current share price is €118.04. Electronic Arts's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was €21.01. Electronic Arts's Cyclically Adjusted PS Ratio for today is 5.62.

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

XTER:ERT' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.79   Med: 6.36   Max: 10.4
Current: 5.68

During the past years, Electronic Arts's highest Cyclically Adjusted PS Ratio was 10.40. The lowest was 1.79. And the median was 6.36.

XTER:ERT's Cyclically Adjusted PS Ratio is ranked worse than
82.27% of 299 companies
in the Interactive Media industry
Industry Median: 1.56 vs XTER:ERT: 5.68

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 PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Electronic Arts's adjusted revenue per share data for the three months ended in Mar. 2024 was €6.062. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is €21.01 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Electronic Arts Cyclically Adjusted PS Ratio Historical Data

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

Electronic Arts Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.59 8.33 6.80 5.83 5.84

Electronic Arts Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PS 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 5.83 6.12 5.53 6.20 5.84

Competitive Comparison of Electronic Arts's Cyclically Adjusted PS Ratio

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

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

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



Electronic Arts Cyclically Adjusted PS Ratio Calculation

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

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

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=118.04/21.01
=5.62

* 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.

Electronic Arts's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Electronic Arts's adjusted Revenue per Share data for the three months ended in Mar. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=6.062/131.7762*131.7762
=6.062

Current CPI (Mar. 2024) = 131.7762.

Electronic Arts Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 2.775 100.560 3.636
201409 2.386 100.428 3.131
201412 2.827 99.070 3.760
201503 3.278 99.621 4.336
201506 3.200 100.684 4.188
201509 2.327 100.392 3.054
201512 3.158 99.792 4.170
201603 3.659 100.470 4.799
201606 3.591 101.688 4.654
201609 2.658 101.861 3.439
201612 3.595 101.863 4.651
201703 4.547 102.862 5.825
201706 4.120 103.349 5.253
201709 2.604 104.136 3.295
201712 3.182 104.011 4.031
201803 4.112 105.290 5.146
201806 3.140 106.317 3.892
201809 3.590 106.507 4.442
201812 3.727 105.998 4.633
201903 3.616 107.251 4.443
201906 3.578 108.070 4.363
201909 4.135 108.329 5.030
201912 4.877 108.420 5.928
202003 4.299 108.902 5.202
202006 4.437 108.767 5.376
202009 3.335 109.815 4.002
202012 4.710 109.897 5.648
202103 3.872 111.754 4.566
202106 4.454 114.631 5.120
202109 5.408 115.734 6.158
202112 5.555 117.630 6.223
202203 5.835 121.301 6.339
202206 5.949 125.017 6.271
202209 6.893 125.227 7.254
202212 6.387 125.222 6.721
202303 6.365 127.348 6.586
202306 6.481 128.729 6.634
202309 6.593 129.860 6.690
202312 6.581 129.419 6.701
202403 6.062 131.776 6.062

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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  (XTER:ERT) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.


Electronic Arts Cyclically Adjusted PS Ratio Related Terms

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


Electronic Arts (XTER:ERT) 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.

Electronic Arts (XTER:ERT) Headlines

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