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Is Electronic Arts Inc.(NASDAQ: EA), a large market cap stock a smart buy?

With a market cap of has a large market cap size. Electronic Arts Inc. (NASDAQ: EA) has been on the stock market since its IPO date on the 3/26/1990. Electronic Arts Inc. is in the Multimedia & Graphics Software industry and Technology sector. Average volume for Electronic Arts Inc., is 3470.85, and so far today it has a volume of 2831912. Performance year to date since the 3/26/1990 is 11.32%.

To help you determine whether Electronic Arts Inc. is undervalued the following values will help you decide. P/E is 21.69 and forward P/E is 18.79. PEG perhaps more useful shows that Electronic Arts Inc. has a value for PEG of 1.45. P/S ratio is 5.26 and the P/B ratio is 6.92. The P/Cash and P/Free cash flow is 6.03 and 20.46 respectively.

At the current price Electronic Arts Inc. is trading at, 76.65 (0.20% today), Electronic Arts Inc. has a dividend yield of *TBA, and this is covered by a payout ratio of 0.00%. Earnings per share (EPS) is 3.53, and this is looking to grow in the next year to 13.62% after growing 30.10% this past year. EPS growth quarter over quarter is 135.40%, and 10.40% for sales growth quarter over quarter.

The number of shares outstanding is 302.24, and the number of shares float is 299.36. The senior management bring insider ownership to 0.50%, and institutional ownership is at *TBA. The float short is 7.12%, with the short ratio at a value of 6.14. Management has seen a return on assets of 18.30%, and also a return on investment of 25.90%.

The ability for Electronic Arts Inc., to deal with debt, means it current ratio is 1.8, and quick ratio is 1.8. Long term debt/equity is 0.29 and total debt/equity is 0.34. In terms of margins, Electronic Arts Inc. has a gross margin of 69.20%, with its operating margin at 20.40%, and Electronic Arts Inc. has a profit margin of 26.30%.

The 52 week high is -4.18%, with 44.60% being its 52 week low. The 20 day simple moving average is 1.95% and the 200 day simple moving average is 11.49%.

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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