Electronic ArtsFRA:ERT +0.57%77 Interest Coverage is 51.27 as of Mar. 2026, which is 97% above its 10-year median of 26.04. GuruFocus rates FRA:ERT with a GF Score™ of 77/100 and a GF Value™ of €137.77 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 316 Interactive Media companies, Electronic Arts ranks worse than 54.75% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Electronic Arts's
Operating Income
for the
three
months ended in Mar. 2026 was €488 Mil. Electronic Arts's Interest Expense for the
three
months ended in Mar. 2026 was €-10 Mil.
Electronic Arts's interest coverage for the quarter that ended in Mar. 2026 was 51.27.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Electronic Arts's Interest Coverage or its related term are showing as below:
FRA:ERT'
s Interest Coverage Range Over the Past 10 Years
Min: 19.47 Med: 26.04 Max: 34.14
Current: 29.79
FRA:ERT's Interest Coverage is ranked worse than 54.75% of 316
companies
in the Interactive Media industry
Industry Median: 38.305
vs FRA:ERT: 29.79
Electronic Arts (FRA:ERT) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Electronic Arts Interest Coverage Related Terms
Electronic Arts Interest Coverage Historical Data
* Premium members only.
The historical data trend for Electronic Arts's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:ERT vs TTWO, RBLX, NTES: Interest Coverage Comparison
For the Electronic Gaming & Multimedia subindustry, Electronic Arts's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Electronic Arts's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Electronic Arts's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (FRA:ERT) has a Interest Coverage of 51.27 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Electronic Arts and its competitors. This is 97% above median its historical median of 26.04. Over the past decade, Electronic Arts' Interest Coverage has ranged from 19.47 to 34.14. According to the industry distribution chart, Electronic Arts ranks #173 out of 316 companies in the Interactive Media industry, placing it in the top 54.7%.
Is Electronic Arts' Interest Coverage too high?
Electronic Arts' current Interest Coverage of 51.27 is 97% above median its 10-year median of 26.04. Over the past 10 years, this metric has ranged from a low of 19.47 to a high of 34.14. The Interactive Media industry median Interest Coverage is 38.31. Electronic Arts' value of 51.27 is 33.8% above this industry median. Based on the distribution chart, Electronic Arts ranks #173 out of 316 companies in the Interactive Media industry, which is below the industry midpoint. Overall, Electronic Arts has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Electronic Arts' Interest Coverage compare to TTWO and RBLX?
According to the Interactive Media industry distribution chart, Electronic Arts ranks #173 out of 316 companies for Interest Coverage. This places Electronic Arts in the lower half of its industry. The industry median Interest Coverage is 38.31. Electronic Arts' value of 51.27 is 33.8% above this benchmark. Historically, Electronic Arts' own Interest Coverage has ranged from 19.47 to 34.14 over the past decade. While the company's 10-year median is 26.04 vs. the industry median of 38.31, Electronic Arts has consistently been above 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 Interest Coverage for an Interactive Media company?
The median Interest Coverage among Interactive Media companies is 38.31, based on 316 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Electronic Arts's current Interest Coverage of 51.27 is 33.8% above 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Electronic Arts and its competitors. For the Interactive Media industry, the median Interest Coverage is 38.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Electronic Arts's current Interest Coverage is 51.27, which is 97% above median its own 10-year median of 26.04. 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?
Based on GuruFocus' analysis, Electronic Arts (FRA:ERT) is currently considered Modestly Overvalued. The stock's GF Value™ is €137.77, compared to a current price of €177.00 — trading 28.5% above its estimated fair value. The current Interest Coverage is 51.27, which is 97% above median its 10-year median of 26.04 and 33.8% above the Interactive Media industry median of 38.31. Electronic Arts' overall GF Score™ is 77/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Electronic Arts (FRA:ERT), the current Interest Coverage is 51.27 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 (FRA:ERT) Overvalued in 2026?
Based on GuruFocus' analysis, Electronic Arts stock appears to be overvalued.
The current stock price of €177.00 is trading 28.5% above its estimated GF Value™ of €137.77.
GuruFocus considers Electronic Arts to be Modestly Overvalued.
Key valuation signals for FRA:ERT:
Interest Coverage: 51.27 (97% above median its 10-year median of 26.04)
GF Value™: €137.77 vs. price of €177.00 (28.5% above fair value)
Industry Position: 33.8% above the Interactive Media median (#173 of 316)
No single metric tells the full story. See the FRA:ERT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
77GF Score
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