Electronic Arts Inc (EA) Stock Analysis
Verdict: AVOID
Trading at $209.70 near the closed $210 Saudi PIF consortium buyout, upside is capped at 0.14% with zero long-term growth participation.
Investment score: 29/100
Analysis as of
Is Electronic Arts Inc stock worth reviewing? AI model thesis
The model evaluates EA as an AVOID for public equity investors following its completed $55B USD take-private buyout at $210.00 cash per share by a Saudi PIF-led consortium. Trading at $209.70 USD, upside is capped at $0.30 USD (0.14%), while public market trading is terminating following Form 25-NSE delisting filings.
7-factor investment score
- Valuation: 30/100 (weight 20%)
- Financial Health: 75/100 (weight 15%)
- Technical Momentum: 50/100 (weight 15%)
- Earnings Quality: 35/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 30/100 (weight 10%)
- Risk-Adjusted Return: 20/100 (weight 15%)
Electronic Arts Inc opportunities and risks
What speaks for EA
- Guaranteed M&A Cash Settlement Floor
What speaks against EA
- Capped Return and Pending Stock Delisting
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| EA | 48.4x | 6.7x | 29.8x | 79.9% | 13.8% | 3.9% |
| TTWO | n/a | 5.7x | 31.7x | 56.0% | -4.8% | 0.9% |
| RBLX | n/a | 5.8x | n/a | 78.9% | -17.6% | 4.9% |
| FIRY | n/a | 1.6x | n/a | 87.5% | -71.4% | -32.4% |
| MRDN | n/a | 0.7x | n/a | 55.7% | -41.4% | 19.5% |
| Peer median | n/a | 3.7x | n/a | 67.5% | -29.5% | 2.9% |
Frequently asked questions about Electronic Arts Inc (EA)
Is EA stock a good investment?
The cached TradeMates AI model rates Electronic Arts Inc as AVOID with an investment score of 29/100. The model evaluates EA as an AVOID for public equity investors following its completed $55B USD take-private buyout at $210.00 cash per share by a Saudi PIF-led consortium. Trading at $209.70 USD, upside is capped at $0.30 USD (0.14%), while public market trading is terminating following Form 25-NSE delisting filings. This is algorithmic model output, not personal investment advice.
Is EA stock a buy?
The TradeMates model verdict for EA is AVOID with an investment score of 29/100. Treat this as a model signal to review, not a personal buy recommendation.