Electronic Arts (EA) Valuation: A Look at the Company's Overvaluation Concerns After Strong Long-Term Returns.

Electronic Arts (EA) shares have recently been trading in a softer range, with a share price at $196.84 and negative returns over the past week and month. Despite this, the company has a strong 1-year total shareholder return of 51.59%. The most followed narrative pegs fair value at $146.82, a sizeable gap that raises questions about assumptions behind it. EA currently trades at a price that exceeds estimated fair value, suggesting investors are paying a premium for growth and profitability already embedded in expectations.