Is Electronic Arts, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Electronic Arts, Inc. has moved from fair to expensive. The company is currently overvalued based on its valuation ratios, which 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, peers such as The Trade Desk, Inc. show a higher P/E ratio of 60.98 and an EV to EBITDA of 41.76, indicating that Electronic Arts is relatively less expensive among its peers, yet still classified as expensive.
Despite its strong performance, with a year-to-date return of 36.91% compared to the S&P 500's 13.30%, the company's valuation metrics suggest that it may not be a prudent investment at current levels. The significant disparity in long-term returns, with Electronic Arts showing a 10-year return of 51.83% against the S&P 500's 227.77%, further emphasizes the caution needed when considering its current valuation.