Electronic ArtsFRA:ERT +0.57%77 ROA % is 14.05% as of Mar. 2026, which is 55% above its 10-year median of 9.08. 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 568 Interactive Media companies, Electronic Arts ranks better than 72.54% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Electronic Arts's annualizedNet Income for the quarter that ended in Mar. 2026 was €1,595 Mil.
Electronic Arts's average Total Assets over the quarter that ended in Mar. 2026 was €11,350 Mil. Therefore, Electronic Arts's annualized ROA % for the quarter that ended in Mar. 2026 was 14.05%.
The historical rank and industry rank for Electronic Arts's ROA % or its related term are showing as below:
FRA:ERT'
s ROA % Range Over the Past 10 Years
Min: 5.83 Med: 9.08 Max: 30.29
Current: 7.12
During the past 13 years, Electronic Arts's highest ROA % was 30.29%. The lowest was 5.83%. And the median was 9.08%.
FRA:ERT's ROA % is ranked better than 72.54% of 568
companies
in the Interactive Media industry
Industry Median: 0.675
vs FRA:ERT: 7.12
Electronic Arts (FRA:ERT) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Electronic Arts ROA % Related Terms
Electronic Arts ROA % Historical Data
* Premium members only.
The historical data trend for Electronic Arts's ROA % 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.
For the Electronic Gaming & Multimedia subindustry, Electronic Arts's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Electronic Arts's ROA % distribution charts can be found below:
* The bar in red indicates where Electronic Arts's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Electronic Arts (FRA:ERT) has a ROA % of 14.05% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Electronic Arts and its competitors. This is 55% above median its historical median of 9.08. Over the past decade, Electronic Arts' ROA % has ranged from 5.83 to 30.29. According to the industry distribution chart, Electronic Arts ranks #156 out of 568 companies in the Interactive Media industry, placing it in the top 27.5%.
Is Electronic Arts' ROA % too high?
Electronic Arts' current ROA % of 14.05% is 55% above median its 10-year median of 9.08. Over the past 10 years, this metric has ranged from a low of 5.83 to a high of 30.29. The Interactive Media industry median ROA % is 0.68. Electronic Arts' value of 14.05% is 1981.5% above this industry median. Based on the distribution chart, Electronic Arts ranks #156 out of 568 companies in the Interactive Media industry, which is above 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' ROA % compare to TTWO and RBLX?
According to the Interactive Media industry distribution chart, Electronic Arts ranks #156 out of 568 companies for ROA %. This puts Electronic Arts in the upper half of its industry. The industry median ROA % is 0.68. Electronic Arts' value of 14.05% is 1981.5% above this benchmark. Historically, Electronic Arts' own ROA % has ranged from 5.83 to 30.29 over the past decade. While the company's 10-year median is 9.08 vs. the industry median of 0.68, 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 ROA % for an Interactive Media company?
The median ROA % among Interactive Media companies is 0.68, based on 568 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Electronic Arts's current ROA % of 14.05% is 1981.5% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Electronic Arts and its competitors. For the Interactive Media industry, the median ROA % is 0.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Electronic Arts's current ROA % is 14.05%, which is 55% above median its own 10-year median of 9.08. 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 ROA % is 14.05%, which is 55% above median its 10-year median of 9.08 and 1981.5% above the Interactive Media industry median of 0.68. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Electronic Arts (FRA:ERT), the current ROA % is 14.05% 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:
ROA %: 14.05% (55% above median its 10-year median of 9.08)
GF Value™: €137.77 vs. price of €177.00 (28.5% above fair value)
Industry Position: 1981.5% above the Interactive Media median (#156 of 568)
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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