Electronic Arts Stock Market Value

EA Stock  USD 131.87  0.97  0.74%   
Electronic Arts' market value is the price at which a share of Electronic Arts trades on a public exchange. It measures the collective expectations of Electronic Arts investors about its performance. Electronic Arts is trading at 131.87 as of the 28th of March 2024, a 0.74 percent up since the beginning of the trading day. The stock's open price was 130.9.
With this module, you can estimate the performance of a buy and hold strategy of Electronic Arts and determine expected loss or profit from investing in Electronic Arts over a given investment horizon. Check out Electronic Arts Correlation, Electronic Arts Volatility and Electronic Arts Alpha and Beta module to complement your research on Electronic Arts.
For information on how to trade Electronic Stock refer to our How to Trade Electronic Stock guide.
Symbol

Electronic Arts Price To Book Ratio

Is Electronic Arts' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Electronic Arts. If investors know Electronic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Electronic Arts listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.466
Dividend Share
0.76
Earnings Share
3.97
Revenue Per Share
28.177
Quarterly Revenue Growth
0.034
The market value of Electronic Arts is measured differently than its book value, which is the value of Electronic that is recorded on the company's balance sheet. Investors also form their own opinion of Electronic Arts' value that differs from its market value or its book value, called intrinsic value, which is Electronic Arts' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Electronic Arts' market value can be influenced by many factors that don't directly affect Electronic Arts' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Electronic Arts' value and its price as these two are different measures arrived at by different means. Investors typically determine if Electronic Arts is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Electronic Arts' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Electronic Arts 'What if' Analysis

In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Electronic Arts' stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Electronic Arts.
0.00
02/27/2024
No Change 0.00  0.0 
In 30 days
03/28/2024
0.00
If you would invest  0.00  in Electronic Arts on February 27, 2024 and sell it all today you would earn a total of 0.00 from holding Electronic Arts or generate 0.0% return on investment in Electronic Arts over 30 days. Electronic Arts is related to or competes with Mobile Global, Motorsport Gaming, Playstudios, The9, Doubledown InteractiveCo, GD Culture, and GameSquare Holdings. Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, ... More

Electronic Arts Upside/Downside Indicators

Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Electronic Arts' stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Electronic Arts upside and downside potential and time the market with a certain degree of confidence.

Electronic Arts Market Risk Indicators

Today, many novice investors tend to focus exclusively on investment returns with little concern for Electronic Arts' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Electronic Arts' standard deviation. In reality, there are many statistical measures that can use Electronic Arts historical prices to predict the future Electronic Arts' volatility.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Electronic Arts' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Hype
Prediction
LowEstimatedHigh
130.92131.86132.80
Details
Intrinsic
Valuation
LowRealHigh
118.68139.15140.09
Details
Naive
Forecast
LowNextHigh
131.61132.55133.50
Details
28 Analysts
Consensus
LowTargetHigh
130.79143.73159.54
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Electronic Arts. Your research has to be compared to or analyzed against Electronic Arts' peers to derive any actionable benefits. When done correctly, Electronic Arts' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Electronic Arts.

Electronic Arts Backtested Returns

Electronic Arts secures Sharpe Ratio (or Efficiency) of -0.0587, which denotes the company had a -0.0587% return per unit of risk over the last 3 months. Electronic Arts exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Electronic Arts' Variance of 0.8381, standard deviation of 0.9155, and Mean Deviation of 0.6913 to check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.47, which means possible diversification benefits within a given portfolio. As returns on the market increase, Electronic Arts' returns are expected to increase less than the market. However, during the bear market, the loss of holding Electronic Arts is expected to be smaller as well. Electronic Arts has an expected return of -0.0558%. Please make sure to confirm Electronic Arts standard deviation, maximum drawdown, kurtosis, as well as the relationship between the total risk alpha and potential upside , to decide if Electronic Arts performance from the past will be repeated at some point in the near future.

Auto-correlation

    
  0.69  

Good predictability

Electronic Arts has good predictability. Overlapping area represents the amount of predictability between Electronic Arts time series from 27th of February 2024 to 13th of March 2024 and 13th of March 2024 to 28th of March 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Electronic Arts price movement. The serial correlation of 0.69 indicates that around 69.0% of current Electronic Arts price fluctuation can be explain by its past prices.
Correlation Coefficient0.69
Spearman Rank Test0.72
Residual Average0.0
Price Variance3.25

Electronic Arts lagged returns against current returns

Autocorrelation, which is Electronic Arts stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Electronic Arts' stock expected returns. We can calculate the autocorrelation of Electronic Arts returns to help us make a trade decision. For example, suppose you find that Electronic Arts has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
   Current and Lagged Values   
       Timeline  

Electronic Arts regressed lagged prices vs. current prices

Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Electronic Arts stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Electronic Arts stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Electronic Arts stock over time.
   Current vs Lagged Prices   
       Timeline  

Electronic Arts Lagged Returns

When evaluating Electronic Arts' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Electronic Arts stock have on its future price. Electronic Arts autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Electronic Arts autocorrelation shows the relationship between Electronic Arts stock current value and its past values and can show if there is a momentum factor associated with investing in Electronic Arts.
   Regressed Prices   
       Timeline  

Pair Trading with Electronic Arts

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Electronic Arts position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Electronic Arts will appreciate offsetting losses from the drop in the long position's value.

Moving against Electronic Stock

  0.53SOHU SohuCom Financial Report 20th of May 2024 PairCorr
  0.43BILI Bilibili Financial Report 6th of June 2024 PairCorr
The ability to find closely correlated positions to Electronic Arts could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Electronic Arts when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Electronic Arts - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Electronic Arts to buy it.
The correlation of Electronic Arts is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Electronic Arts moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Electronic Arts moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Electronic Arts can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Electronic Arts offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Electronic Arts' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Electronic Arts Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Electronic Arts Stock:
Check out Electronic Arts Correlation, Electronic Arts Volatility and Electronic Arts Alpha and Beta module to complement your research on Electronic Arts.
For information on how to trade Electronic Stock refer to our How to Trade Electronic Stock guide.
Note that the Electronic Arts information on this page should be used as a complementary analysis to other Electronic Arts' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

Complementary Tools for Electronic Stock analysis

When running Electronic Arts' price analysis, check to measure Electronic Arts' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Electronic Arts is operating at the current time. Most of Electronic Arts' value examination focuses on studying past and present price action to predict the probability of Electronic Arts' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Electronic Arts' price. Additionally, you may evaluate how the addition of Electronic Arts to your portfolios can decrease your overall portfolio volatility.
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Electronic Arts technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Electronic Arts technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Electronic Arts trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...