Is Electronic Arts, Inc. overvalued or undervalued?

As of 8 August 2025, the valuation grade for Electronic Arts, Inc. has moved from fair to expensive. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 32, a Price to Book Value of 5.87, and an EV to EBITDA of 18.91. In comparison, its peer The Trade Desk, Inc. has a higher P/E ratio of 60.98 and an EV to EBITDA of 41.76, indicating that Electronic Arts is trading at a lower valuation relative to this peer.
Despite the recent stock performance, where Electronic Arts has outperformed the S&P 500 with a year-to-date return of 18.37% compared to 12.22%, the overall valuation suggests that the stock is currently expensive.