Electronic Arts (HAM:ERT) Debt-to-EBITDA : 0.58 (As of Mar. 2026) — 40% Below Median

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HAM:ERT Electronic Arts Inc HAM:ERT
90 GF Score
Price €181.00
GF Value €140.00
! 5 Warning Signs
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What is Electronic Arts Debt-to-EBITDA?

Electronic Arts HAM:ERT +0.28% 90 Debt-to-EBITDA is 0.58 as of Mar. 2026, which is 40% below its 10-year median of 0.96. GuruFocus rates HAM:ERT with a GF Score™ of 90/100 and a GF Value™ of €140.00. The stock has 5 warning signs investors should review. Among 305 Interactive Media companies, Electronic Arts ranks worse than 59.02% on this metric.

Debt-to-EBITDA measures a company's ability to pay off its debt.

Electronic Arts's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was €54 Mil. Electronic Arts's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was €1,285 Mil. Electronic Arts's annualized EBITDA for the quarter that ended in Mar. 2026 was €2,329 Mil. Electronic Arts's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 was 0.58.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Electronic Arts's Debt-to-EBITDA or its related term are showing as below:

HAM:ERT' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.61   Med: 0.96   Max: 1.57
Current: 1.01

During the past 13 years, the highest Debt-to-EBITDA Ratio of Electronic Arts was 1.57. The lowest was 0.61. And the median was 0.96.

HAM:ERT's Debt-to-EBITDA is ranked worse than
59.02% of 305 companies
in the Interactive Media industry
Industry Median: 0.67 vs HAM:ERT: 1.01

Electronic Arts  (HAM:ERT) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Electronic Arts Debt-to-EBITDA Related Terms


Electronic Arts Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Electronic Arts's Debt-to-EBITDA 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.

Electronic Arts Debt-to-EBITDA Chart

Electronic Arts Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.21 1.01 0.95 0.97 1.00

Electronic Arts Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Debt-to-EBITDA 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 0.97 1.40 1.67 2.18 0.58

HAM:ERT vs TTWO, RBLX, NTES: Debt-to-EBITDA Comparison

For the Electronic Gaming & Multimedia subindustry, Electronic Arts's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Electronic Arts's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Electronic Arts's Debt-to-EBITDA falls into.


HAM:ERT
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Electronic Arts Inc HAM:ERT
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
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Electronic Arts Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Electronic Arts's Debt-to-EBITDA for the fiscal year that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(54.495 + 1284.525) / 1345.94
=0.99

Electronic Arts's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(54.495 + 1284.525) / 2328.58
=0.58

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 0.58 mean?
Electronic Arts (HAM:ERT) has a Debt-to-EBITDA of 0.58 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Electronic Arts. This is 40% below median its historical median of 0.96. Over the past decade, Electronic Arts' Debt-to-EBITDA has ranged from 0.61 to 1.57. According to the industry distribution chart, Electronic Arts ranks #180 out of 305 companies in the Interactive Media industry, placing it in the top 59%.
Is Electronic Arts' Debt-to-EBITDA too high?
Electronic Arts' current Debt-to-EBITDA of 0.58 is 40% below median its 10-year median of 0.96. Over the past 10 years, this metric has ranged from a low of 0.61 to a high of 1.57. The Interactive Media industry median Debt-to-EBITDA is 0.67. Electronic Arts' value of 0.58 is 13.4% below this industry median. Based on the distribution chart, Electronic Arts ranks #180 out of 305 companies in the Interactive Media industry, which is below the industry midpoint. Overall, Electronic Arts has a GF Score™ of 90/100, reflecting its overall financial health beyond just this single metric.
How does Electronic Arts' Debt-to-EBITDA compare to TTWO and RBLX?
According to the Interactive Media industry distribution chart, Electronic Arts ranks #180 out of 305 companies for Debt-to-EBITDA. This places Electronic Arts in the lower half of its industry. The industry median Debt-to-EBITDA is 0.67. Electronic Arts' value of 0.58 is 13.4% below this benchmark. Historically, Electronic Arts' own Debt-to-EBITDA has ranged from 0.61 to 1.57 over the past decade. While the company's 10-year median is 0.96 vs. the industry median of 0.67, Electronic Arts has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Interactive Media company?
The median Debt-to-EBITDA among Interactive Media companies is 0.67, based on 305 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Electronic Arts's current Debt-to-EBITDA of 0.58 is 13.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Electronic Arts. For the Interactive Media industry, the median Debt-to-EBITDA is 0.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Electronic Arts's current Debt-to-EBITDA is 0.58, which is 40% below median its own 10-year median of 0.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Electronic Arts stock overvalued right now?
Electronic Arts (HAM:ERT) has a current Debt-to-EBITDA of 0.58. The stock's GF Value™ is €140.00, compared to a current price of €181.00 — trading 29.3% above its estimated fair value. The current Debt-to-EBITDA is 0.58, which is 40% below median its 10-year median of 0.96 and 13.4% below the Interactive Media industry median of 0.67. Electronic Arts' overall GF Score™ is 90/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Electronic Arts (HAM:ERT), the current Debt-to-EBITDA is 0.58 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Electronic Arts (HAM:ERT) Overvalued in 2026?

Based on GuruFocus' analysis, Electronic Arts stock appears to be overvalued. The current stock price of €181.00 is trading 29.3% above its estimated GF Value™ of €140.00.

Key valuation signals for HAM:ERT:

  • Debt-to-EBITDA: 0.58 (40% below median its 10-year median of 0.96)
  • GF Value™: €140.00 vs. price of €181.00 (29.3% above fair value)
  • GF Score™: 90/100 with 5 warning signs
  • Industry Position: 13.4% below the Interactive Media median (#180 of 305)

No single metric tells the full story. See the HAM:ERT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Electronic Arts Business Description

Address 209 Redwood Shores Parkway, Redwood City, CA, USA, 94065
Electronic Arts is one of the largest global developers and publishers of video games. Its most important franchises are the Madden NFL and FC soccer games, which it releases annually. In 2024, it also relaunched its American college football game. Other major franchises include Apex Legends, Battlefield, and The Sims. Typically, about three-quarters of the firm's sales are from in-game spending, with the remainder coming from initial game sales.
90GF Score

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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€181.00
Price
€140.00
GF Value