Electronic ArtsHAM:ERT +0.28%90 Return-on-Tangible-Equity is 214.53% as of Mar. 2026, which is 286% above its 10-year median of 55.53. GuruFocus rates HAM:ERT with a GF Score™ of 90/100 and a GF Value™ of €139.99. The stock has 4 warning signs investors should review. Among 490 Interactive Media companies, Electronic Arts ranks better than 91.43% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Electronic Arts's annualized net income for the quarter that ended in Mar. 2026 was €1,595 Mil. Electronic Arts's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €743 Mil. Therefore, Electronic Arts's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 214.53%.
The historical rank and industry rank for Electronic Arts's Return-on-Tangible-Equity or its related term are showing as below:
HAM:ERT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 16.43 Med: 55.53 Max: 137.22
Current: 137.22
During the past 13 years, Electronic Arts's highest Return-on-Tangible-Equity was 137.22%. The lowest was 16.43%. And the median was 55.53%.
HAM:ERT's Return-on-Tangible-Equity is ranked better than 91.43% of 490
companies
in the Interactive Media industry
Industry Median: 5.865
vs HAM:ERT: 137.22
Electronic Arts (HAM:ERT) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Electronic Arts Return-on-Tangible-Equity Related Terms
Electronic Arts Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Electronic Arts's Return-on-Tangible-Equity 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.
HAM:ERT vs TTWO, RBLX, NTES: Return-on-Tangible-Equity Comparison
For the Electronic Gaming & Multimedia subindustry, Electronic Arts's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Electronic Arts's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Electronic Arts's Return-on-Tangible-Equity falls into.
* 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 214.53% mean?
Electronic Arts (HAM:ERT) has a Return-on-Tangible-Equity of 214.53% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Electronic Arts and its competitors. This is 286% above median its historical median of 55.53. Over the past decade, Electronic Arts' Return-on-Tangible-Equity has ranged from 16.43 to 137.22. According to the industry distribution chart, Electronic Arts ranks #42 out of 490 companies in the Interactive Media industry, placing it in the top 8.6%.
Is Electronic Arts' Return-on-Tangible-Equity too high?
Electronic Arts' current Return-on-Tangible-Equity of 214.53% is 286% above median its 10-year median of 55.53. Over the past 10 years, this metric has ranged from a low of 16.43 to a high of 137.22. The Interactive Media industry median Return-on-Tangible-Equity is 5.87. Electronic Arts' value of 214.53% is 3557.8% above this industry median. Based on the distribution chart, Electronic Arts ranks #42 out of 490 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, Electronic Arts has a GF Score™ of 90/100, reflecting its overall financial health beyond just this single metric.
How does Electronic Arts' Return-on-Tangible-Equity compare to TTWO and RBLX?
According to the Interactive Media industry distribution chart, Electronic Arts ranks #42 out of 490 companies for Return-on-Tangible-Equity. This places Electronic Arts in the top 9% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.87. Electronic Arts' value of 214.53% is 3557.8% above this benchmark. Historically, Electronic Arts' own Return-on-Tangible-Equity has ranged from 16.43 to 137.22 over the past decade. While the company's 10-year median is 55.53 vs. the industry median of 5.87, 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 Return-on-Tangible-Equity for an Interactive Media company?
The median Return-on-Tangible-Equity among Interactive Media companies is 5.87, based on 490 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Electronic Arts's current Return-on-Tangible-Equity of 214.53% is 3557.8% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Electronic Arts and its competitors. For the Interactive Media industry, the median Return-on-Tangible-Equity is 5.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Electronic Arts's current Return-on-Tangible-Equity is 214.53%, which is 286% above median its own 10-year median of 55.53. 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 Return-on-Tangible-Equity of 214.53%. The stock's GF Value™ is €139.99, compared to a current price of €179.50 — trading 28.2% above its estimated fair value. The current Return-on-Tangible-Equity is 214.53%, which is 286% above median its 10-year median of 55.53 and 3557.8% above the Interactive Media industry median of 5.87. Electronic Arts' overall GF Score™ is 90/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Electronic Arts (HAM:ERT), the current Return-on-Tangible-Equity is 214.53% 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 €179.50 is trading 28.2% above its estimated GF Value™ of €139.99.
Key valuation signals for HAM:ERT:
Return-on-Tangible-Equity: 214.53% (286% above median its 10-year median of 55.53)
GF Value™: €139.99 vs. price of €179.50 (28.2% above fair value)
Industry Position: 3557.8% above the Interactive Media median (#42 of 490)
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 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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