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Electronic Arts Inc. (NASDAQ: EA) – Is this large market cap stock undervalued?

Electronic Arts Inc. (NASDAQ: EA), is firmly in the large market cap category with market cap of 25050.33. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Electronic Arts Inc. is 81.76 (with a change from open of -0.40%), this in conjunction with a target price of 89.42. Volume today has so far reached 1163489, with an average volume of about 3080.22. The GAP for this stock, is -0.53%.

The P/E ratio is 22.9, bringing the forward P/E to a value of 20.08. The current EPS for Electronic Arts Inc., is 3.6, with a EPS growth for this year coming to a value of 30.10%. Performance has been interesting with performance year to date coming to 20.10%.

Looking further into the growth statistics for Electronic Arts Inc., EPS is looking like it will grow 12.88% in the next year. Looking even further it is projected to be 16.24%. Quarter over quarter is 5.90% for EPS growth and for sales growth quarter over quarter it is 5.70%. Looking at past EPS growth statistics we see that for the past five years it has been 44.00%. Sales growth for the past five years has in fact been 4.10%.

Looking at the ownership, we see that the insider ownership is at 0.40% and institutional ownership is *TBA. Shares outstanding is 303.53, while shares float is at a value of 298.78. Float short for Electronic Arts Inc. is 6.03% and the short ratio is 5.85.

In terms of debt, long term debt/equity is 0.27, while the total debt/equity comes to 0.3. The ability to meet these debts, means that the current ratio is 2.4, and the quick ratio is 2.4. The most recent gross margin is 69.50% and their operating margin is 21.20%. The profit margin is 25.90%.

Electronic Arts Inc. has seen returns on assets of 17.70%, and on investment, 25.90%. Return on equity is 34.80%. Price/Earnings to growth ratio is 1.41. Price/Sales ratio is at a value of 5.61, with Price/book ratio coming to 6.68 and Price/cash is 7.31, and finally Price/Free cash Flow is 26.73.

The simple moving averages are -0.30% and 13.55% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -5.01% and the 52 week low is 54.24%.

Electronic Arts Inc. has a dividend yield of *TBA, with a current price of 81.76. The ability to pay this means the payout ratio is 0.00%. This is in an industry, Multimedia & Graphics Software, with equally high dividends from other companies in this sector, which it is Technology. Electronic Arts Inc. is based in USA.

Performance in the Multimedia & Graphics Software industry means that Electronic Arts Inc. has seen performance for the past week of -3.44%, with performance for the month coming to 2.05%. Looking at the data for the quarter it is at a value of 5.74%, and for the half year the performance is 20.62%. Volatility for this week is 2.19% and for the month this is 1.74%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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