As of June 12, 2025, Games Operators SA's estimated intrinsic value ranges from $19.68 to $32.16 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $32.16 | +95.6% |
| Discounted Cash Flow (5Y) | $27.03 | +64.4% |
| Dividend Discount Model (Multi-Stage) | $19.68 | +19.7% |
| Dividend Discount Model (Stable) | $20.77 | +26.3% |
| Earnings Power Value | $32.04 | +94.9% |
Is Games Operators SA (GOP.WA) undervalued or overvalued?
With the current market price at $16.44, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Games Operators SA's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.56 | 0.62 |
| Cost of equity | 9.0% | 11.1% |
| Cost of debt | 6.1% | 6.1% |
| Tax rate | 7.8% | 15.7% |
| Debt/Equity ratio | 0 | 0 |
| After-tax WACC | 9.0% | 11.1% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $27 | $135M | 62.6% |
| 10-Year Growth | $32 | $164M | 44.0% |
| 5-Year EBITDA | $24 | $121M | 58.3% |
| 10-Year EBITDA | $30 | $151M | 39.3% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $16M |
| Discount Rate (WACC) | 11.1% - 9.0% |
| Enterprise Value | $146M - $180M |
| Net Debt | $(13)M |
| Equity Value | $160M - $193M |
| Outstanding Shares | 6M |
| Fair Value | $29 - $35 |
| Selected Fair Value | $32.04 |
| Metric | Value |
|---|---|
| Market Capitalization | $90M |
| Enterprise Value | $77M |
| Trailing P/E | 6.93 |
| Forward P/E | 6.72 |
| Trailing EV/EBITDA | 5.50 |
| Current Dividend Yield | 132.76% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.00 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $9.65 |
| Discounted Cash Flow (5Y) | 25% | $6.76 |
| Dividend Discount Model (Multi-Stage) | 20% | $3.94 |
| Dividend Discount Model (Stable) | 15% | $3.12 |
| Earnings Power Value | 10% | $3.20 |
| Weighted Average | 100% | $26.66 |
Based on our comprehensive valuation analysis, Games Operators SA's weighted average intrinsic value is $26.66, which is approximately 62.2% above the current market price of $16.44.
Key investment considerations:
Given these factors, we believe Games Operators SA is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.