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. have a higher P/E of 60.98 and an EV to EBITDA of 41.76, indicating that Electronic Arts is not the most expensive in its sector, but still carries a premium.
Despite the recent stock performance, where Electronic Arts has outperformed the S&P 500 with a year-to-date return of 36.91% compared to 13.30%, the overall valuation suggests caution. Given the elevated valuation metrics, the stock appears to be priced for perfection, making it less attractive for new investments at this time.