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Flutter Entertainment (NYSE:FLUT) is back in focus after two separate regulatory storylines put sports betting on investors’ radar, including a potential UK legal challenge to new affordability checks and fresh interest from investor Michael Burry.
See our latest analysis for Flutter Entertainment.
After a difficult stretch in which the year to date share price return is down 48.5% and the 1 year total shareholder return declined 61.91%, Flutter Entertainment has recently shown improving momentum, with a 7 day share price return of 4.63% and a 90 day share price return of 5.28% around these regulatory headlines and Michael Burry’s interest.
If this kind of regulatory and growth story has your attention, it can be useful to see what else is moving in related themes and check out 19 cryptocurrency and blockchain stocks
Flutter Entertainment looks like a sizeable, diversified betting business, yet the stock is still down sharply over the past year, even after the recent bounce. Is that disconnect giving you a reasonable entry point, or a value trap ahead of tighter rules?
Most Popular Narrative: 30.9% Undervalued
On the most followed narrative, Flutter Entertainment’s fair value of $162.72 sits well above the last close at $112.40, framing a sizeable valuation gap for you to interrogate.
Ongoing expansion of online gambling and iGaming in newly regulated and high-growth markets (e.g., Brazil and the U.S.) is expected to accelerate Flutter’s revenue and earnings, leveraging increasing global internet and smartphone penetration and regulatory liberalization.
Read the complete narrative. Read the complete narrative.
Want to see what underpins that gap between price and fair value? The narrative leans on brisk earnings growth, fatter margins and a punchy future profit multiple. The specific hurdles and assumptions might surprise you.
This widely followed view uses a 10.07% discount rate and incorporates revenue growth and margin expansion alongside a forward P/E multiple that sits above current sector averages, all tied to Flutter Entertainment’s push across the US, Europe and newer markets such as Brazil.
Result: Fair Value of $162.72 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, that valuation gap relies on Flutter Entertainment sidestepping tighter regulation and managing its sizeable debt load, both of which could quickly challenge the bullish narrative.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source finance.yahoo.com ’
