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Electronic Arts has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Electronic Arts Inc shows strong financial strength.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Electronic Arts's Interest Coverage for the quarter that ended in Jun. 2026 was 513.00.
Electronic Arts's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.19.
As of today, Electronic Arts's Altman Z-Score is 7.61.
Electronic Arts (FRA:ERT) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Electronic Arts has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Electronic Arts Financial Strength Related Terms
FRA:ERT vs TTWO, RBLX, NTES: Financial Strength Comparison
For the Electronic Gaming & Multimedia subindustry, Electronic Arts's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Electronic Arts's Financial Strength distribution charts can be found below:
* The bar in red indicates where Electronic Arts's Financial Strength 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:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Electronic Arts has a Z-score of 7.61, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 7.61 is strong.
* 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 Financial Strength of 8 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Electronic Arts and its competitors. This is near median its historical median of 8.00. Over the past decade, Electronic Arts' Financial Strength has ranged from 7.00 to 10.00.
Is Electronic Arts' Financial Strength too high?
Electronic Arts' current Financial Strength of 8 is near median its 10-year median of 8.00. Over the past 10 years, this metric has ranged from a low of 7.00 to a high of 10.00. Overall, Electronic Arts has a GF Score™ of 96/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Electronic Arts' Financial Strength compare to TTWO and RBLX?
Electronic Arts' Financial Strength of 8 can be compared against companies in the Interactive Media industry. Historically, Electronic Arts' own Financial Strength has ranged from 7.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Interactive Media company?
A good Financial Strength depends on the Interactive Media industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Electronic Arts and its competitors. Electronic Arts's current Financial Strength is 8, which is near median its own 10-year median of 8.00. 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 €146.34, compared to a current price of €182.50 — trading 24.7% above its estimated fair value. The current Financial Strength is 8, which is near median its 10-year median of 8.00. Electronic Arts' overall GF Score™ is 96/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Electronic Arts (FRA:ERT), the current Financial Strength is 8 as of Jun. 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 €182.50 is trading 24.7% above its estimated GF Value™ of €146.34.
GuruFocus considers Electronic Arts to be Modestly Overvalued.
Key valuation signals for FRA:ERT:
Financial Strength: 8 (near median its 10-year median of 8.00)
GF Value™: €146.34 vs. price of €182.50 (24.7% above fair value)
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.
96GF Score
Get the complete analysis for FRA:ERT
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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