Profitability Ratios Proving Vital for Investment: Electronic Arts Inc. (NASDAQ:EA), Science Applications International (NYSE:SAIC)

Electronic Arts Inc. (NASDAQ:EA) kept active in under and overvalue discussion, EA holds price to book ratio of 6.49 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation. In addition, the firm has price to earnings ratio of 19.81, which is authentic method to judge but not universal for all situation.

Fundament/ News Factor in Focus

Taking look on ratio analysis, EA has forward price to earnings ratio of 18.66, compare to its price to earnings ratio of 19.81. Adding one more ration to find detail valuation of security, price to earnings growth ration that stands at 1.20. The co is presenting price to cash flow as 7.16 and while calculating price to free cash flow it concluded at 22.79, the low single digit may indicate stock is undervalued and vise versa. On other hand, keeping in mind stable cash flows but few growth prospects make traders to value lower.

The firm has price volatility of 2.51% for a week and 2.71% for a month. Its beta stands at 0.56 times. Narrow down four to firm performance, its weekly performance was 2.91% and monthly performance was -4.55%.

Science Applications International Corporation (NYSE:SAIC) runs in leading trade, it increasing 4.62% to traded at $85.91. SAIC attains analyst recommendation of 2.40 on scale of 1-5 with week’s performance of 6.46%.

To find out the technical position of SAIC, it holds price to book ratio of 10.58 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 23.61, and price to earnings ratio calculated as 30.40. The price to earnings growth ration calculated as 6.08. SAIC is presenting price to cash flow of 32.85 and free cash flow concluded as 23.91.

EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at -15.10%, and looking further price to next year’s EPS is 10.31%. While take a short look on price to sales ratio, that was 0.84 and price to earning ration of 30.40 attracting passive investors.


About Blake Escott

Blake Escott holds junior writer position in SWR. Before joining Streetwise Report, he was a freelance content Writer. He has high-level copywriting experience and particularly experienced in proofreading and editing. He covers news about different companies including all US market sectors. Interests: Commodities, Energy stocks, Sector-wise Stocks analysis, Utilities

Leave a Reply

Your email address will not be published. Required fields are marked *