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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 25075.05. 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 83.2 (with a change from open of 0.07%), this in conjunction with a target price of 87.04. Volume today has so far reached 889584, with an average volume of about 3224.05. The GAP for this stock, is 0.30%.

The P/E ratio is 23, bringing the forward P/E to a value of 20.22. 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 20.62%.

Looking further into the growth statistics for Electronic Arts Inc., EPS is looking like it will grow 12.80% 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 . Shares outstanding is 302.51, while shares float is at a value of 298.78. Float short for Electronic Arts Inc. is 6.36% and the short ratio is 5.89.

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 1.42. Price/Sales ratio is at a value of 5.62, with Price/book ratio coming to 6.71 and Price/cash is 7.32, and finally Price/Free cash Flow is 26.76.

The simple moving averages are 4.66% and 17.73% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -1.48% and the 52 week low is 56.95%.

Electronic Arts Inc. has a dividend yield of , with a current price of 83.2. 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 3.79%, with performance for the month coming to 3.91%. Looking at the data for the quarter it is at a value of 11.23%, and for the half year the performance is 16.65%. Volatility for this week is 2.03% and for the month this is 1.68%.

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.

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Peter Clarke

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