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 appears to be overvalued based on its current metrics. The P/E ratio stands at 32, while the industry average is not provided, indicating a potential premium. Additionally, the EV to EBITDA ratio is 18.91, and the Price to Book Value is 5.87, both suggesting a higher valuation relative to typical industry standards.
In comparison to peers, Electronic Arts, Inc. has a higher P/E ratio than The Trade Desk, Inc., which has a P/E of 60.98, and a lower EV to EBITDA ratio than its peer at 41.76. Despite recent strong performance, with a year-to-date return of 36.91% compared to the S&P 500's 13.30%, the overall valuation metrics indicate that the stock is not justified at its current price level.