Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 0.4% dividend yield, Electronic Arts Inc. has a fair value of $214.75 based on NTM EPS (FY2026) of $8.59. The current PEG ratio is 0.84.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 27.7% |
| Dividend Yield | +0.4% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $8.59 |
| Fair Value | $214.75 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $4.23 | — | — |
| FY2026E | $8.59 | +103.1% | 14 |
| FY2027E | $9.32 | +8.5% | 14 |
| FY2028E | $10.09 | +8.2% | 14 |
| FY2029E | $12.42 | +23.1% | 7 |
| FY2030E | $14.38 | +15.8% | 9 |
5Y Forward EPS CAGR: 27.7%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| Year | Net Income | EPS | YoY |
|---|
| FY2021 | $837.0M | $2.87 | — |
| FY2022 | $789.0M | $2.76 | -3.8% |
| FY2023 | $802.0M | $2.88 | +4.3% |
| FY2024 | $1.3B | $4.68 | +62.5% |
| FY2025 | $1.1B | $4.23 | -9.6% |
4Y Historical EPS CAGR: 10.2%