Electronic Arts' valuation under scrutiny as shares trade near fair value

Electronic Arts (EA) stock is trading at $204.25, slightly above its narrative fair value of $202.36. The company's 1-year total shareholder return is 43.24%, and its 3-year total shareholder return is 62.82%. EA's recent performance has been steady, but its valuation reflects a modest growth outlook, higher margins, and a premium future earnings multiple. However, risks to this narrative include Apex Legends bookings declining and weaker consumer spending impacting live services and new releases.