Electronic ArtsFRA:ERT +0.57%77 ROE % is 28.73% as of Mar. 2026, which is 72% above its 10-year median of 16.67. 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 534 Interactive Media companies, Electronic Arts ranks better than 76.03% on this metric.
The historical rank and industry rank for Electronic Arts's ROE % or its related term are showing as below:
FRA:ERT'
s ROE % Range Over the Past 10 Years
Min: 10.2 Med: 16.67 Max: 47.51
Current: 14.13
During the past 13 years, Electronic Arts's highest ROE % was 47.51%. The lowest was 10.20%. And the median was 16.67%.
FRA:ERT's ROE % is ranked better than 76.03% of 534
companies
in the Interactive Media industry
Industry Median: 2.345
vs FRA:ERT: 14.13
Electronic Arts (FRA:ERT) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Electronic Arts ROE % Related Terms
Electronic Arts ROE % Historical Data
* Premium members only.
The historical data trend for Electronic Arts's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Electronic Arts's ROE % distribution charts can be found below:
* The bar in red indicates where Electronic Arts's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Electronic Arts (FRA:ERT) has a ROE % of 28.73% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Electronic Arts and its competitors. This is 72% above median its historical median of 16.67. Over the past decade, Electronic Arts' ROE % has ranged from 10.20 to 47.51. According to the industry distribution chart, Electronic Arts ranks #128 out of 534 companies in the Interactive Media industry, placing it in the top 24%.
Is Electronic Arts' ROE % too high?
Electronic Arts' current ROE % of 28.73% is 72% above median its 10-year median of 16.67. Over the past 10 years, this metric has ranged from a low of 10.20 to a high of 47.51. The Interactive Media industry median ROE % is 2.35. Electronic Arts' value of 28.73% is 1125.2% above this industry median. Based on the distribution chart, Electronic Arts ranks #128 out of 534 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 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Electronic Arts' ROE % compare to TTWO and RBLX?
According to the Interactive Media industry distribution chart, Electronic Arts ranks #128 out of 534 companies for ROE %. This places Electronic Arts in the top 24% of its industry — outperforming the majority of peers. The industry median ROE % is 2.35. Electronic Arts' value of 28.73% is 1125.2% above this benchmark. Historically, Electronic Arts' own ROE % has ranged from 10.20 to 47.51 over the past decade. While the company's 10-year median is 16.67 vs. the industry median of 2.35, 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 ROE % for an Interactive Media company?
The median ROE % among Interactive Media companies is 2.35, based on 534 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Electronic Arts's current ROE % of 28.73% is 1125.2% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Electronic Arts and its competitors. For the Interactive Media industry, the median ROE % is 2.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Electronic Arts's current ROE % is 28.73%, which is 72% above median its own 10-year median of 16.67. 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 ROE % is 28.73%, which is 72% above median its 10-year median of 16.67 and 1125.2% above the Interactive Media industry median of 2.35. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Electronic Arts (FRA:ERT), the current ROE % is 28.73% 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:
ROE %: 28.73% (72% above median its 10-year median of 16.67)
GF Value™: €137.77 vs. price of €177.00 (28.5% above fair value)
Industry Position: 1125.2% above the Interactive Media median (#128 of 534)
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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