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Electronic Arts (XTER:ERT) Earnings Yield (Joel Greenblatt) % : 4.60% (As of Mar. 2025)


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What is Electronic Arts Earnings Yield (Joel Greenblatt) %?

Electronic Arts's Enterprise Value for the quarter that ended in Mar. 2025 was €33,404 Mil. Electronic Arts's EBIT for the trailing twelve months (TTM) ended in Mar. 2025 was €1,504 Mil. Electronic Arts's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2025 was 4.60%.

The historical rank and industry rank for Electronic Arts's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

XTER:ERT' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.23   Med: 4.37   Max: 7.71
Current: 4.44

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Electronic Arts was 7.71%. The lowest was 2.23%. And the median was 4.37%.

XTER:ERT's Earnings Yield (Joel Greenblatt) % is ranked better than
60.53% of 570 companies
in the Interactive Media industry
Industry Median: 1.325 vs XTER:ERT: 4.44

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Electronic Arts's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2025 was 14.31%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Electronic Arts Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Electronic Arts's Earnings Yield (Joel Greenblatt) % 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.

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Electronic Arts Earnings Yield (Joel Greenblatt) % Chart

Electronic Arts Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.10 3.32 4.32 4.84 4.60

Electronic Arts Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Earnings Yield (Joel Greenblatt) % 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 4.84 3.99 3.91 3.98 4.60

Competitive Comparison of Electronic Arts's Earnings Yield (Joel Greenblatt) %

For the Electronic Gaming & Multimedia subindustry, Electronic Arts's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Electronic Arts's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Electronic Arts's Earnings Yield (Joel Greenblatt) % falls into.


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Electronic Arts Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Electronic Artss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Mar. 2025 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=1538.275/33404.2812
=4.61 %

Electronic Arts's EBIT for the trailing twelve months (TTM) ended in Mar. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was €1,504 Mil.



Electronic Arts  (XTER:ERT) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Electronic Arts Earnings Yield (Joel Greenblatt) % Related Terms

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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.

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