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Electronic Arts (NAS:EA) GF Value Rank

: 9 (As of Today)
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Electronic Arts has the GF Value Rank of 9.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison

For the Electronic Gaming & Multimedia subindustry, Electronic Arts's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

For the Interactive Media industry and Communication Services sector, Electronic Arts's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Electronic Arts's GF Value Rank falls in comparison to its industry or sector. The grey bar indicates the GF Value Rank's extreme value range as defined by GuruFocus.

Electronic Arts GF Value Rank Related Terms

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Electronic Arts (NAS:EA) Business Description

Electronic Arts logo
Traded in Other Exchanges
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, FIFA, Battlefield, Apex Legends, Mass Effect, Dragon's Age, and Need for Speed.
Chris Suh officer: Chief Financial Officer C/O CARDLYTICS, INC., 675 PONCE DE LEON AVE. NE, STE 6000, ATLANTA GA 30308
Rachel A Gonzalez director 3150 SABRE DRIVE, SOUTHLAKE TX 76092
Eric Charles Kelly officer: Chief Accounting Officer 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Matthew Bilbey officer: EVP of Strategic Growth 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Kenneth A Moss officer: Chief Technology Officer 209 REDWOOD SHORES PKWY, REDWOOD CITY CA 94061
Kenneth A Barker officer: Chief Accounting Officer C/O ELECTRONIC ARTS INC., 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Joel Linzner officer: EVP Worldwide Business Affairs 209 REDWOOD SHORES PARKWAY, REDWOOD CITY, CA 94065
Blake J Jorgensen officer: COO & CFO 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Probst Lawrence F Iii director 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Chris Bruzzo officer: Chief Marketing Officer 411 FIRST AVE., SOUTH, SUITE 700, SEATTLE WA 98104
Andrew Wilson director, officer: Chief Executive Officer 209 REDWOOD SHORES PKWY, REDWOOD CITY CA 94065
Denise Warren director 209 REDWOOD SHORES PKWY, REDWOOD CITY CA 94065
Patrick Soderlund officer: Chief Design Officer 209 REDWOOD SHORES PKWY, REDWOOD CITY CA 94065

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