As of June 4, 2025, Gamesys Group PLC's estimated intrinsic value ranges from $1367.67 to $2866.16 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $2866.16 | +54.9% |
| Discounted Cash Flow (5Y) | $2290.53 | +23.8% |
| Dividend Discount Model (Multi-Stage) | $1367.67 | -26.1% |
| Dividend Discount Model (Stable) | $1539.87 | -16.8% |
| Earnings Power Value | $2264.53 | +22.4% |
Is Gamesys Group PLC (GYS.L) undervalued or overvalued?
With the current market price at $1850.00, the stock appears to be moderately 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 Gamesys Group PLC'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 | 2.9% | 3.4% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 0.73 | 0.87 |
| Cost of equity | 6.8% | 9.5% |
| Cost of debt | 4.7% | 6.0% |
| Tax rate | 1.7% | 2.2% |
| Debt/Equity ratio | 0.26 | 0.26 |
| After-tax WACC | 6.4% | 8.7% |
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 | $2,291 | $2,770M | 82.1% |
| 10-Year Growth | $2,866 | $3,401M | 68.4% |
| 5-Year EBITDA | $724 | $1,055M | 53.1% |
| 10-Year EBITDA | $1,261 | $1,643M | 34.6% |
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 | $202M |
| Discount Rate (WACC) | 8.7% - 6.4% |
| Enterprise Value | $2,310M - $3,174M |
| Net Debt | $262M |
| Equity Value | $2,047M - $2,912M |
| Outstanding Shares | 1M |
| Fair Value | $1,870 - $2,659 |
| Selected Fair Value | $2264.53 |
| Metric | Value |
|---|---|
| Market Capitalization | $2026M |
| Enterprise Value | $2288M |
| Trailing P/E | 24.76 |
| Forward P/E | 27.25 |
| Trailing EV/EBITDA | 4.65 |
| Current Dividend Yield | 215.74% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.26 |
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% | $859.85 |
| Discounted Cash Flow (5Y) | 25% | $572.63 |
| Dividend Discount Model (Multi-Stage) | 20% | $273.53 |
| Dividend Discount Model (Stable) | 15% | $230.98 |
| Earnings Power Value | 10% | $226.45 |
| Weighted Average | 100% | $2163.45 |
Based on our comprehensive valuation analysis, Gamesys Group PLC's weighted average intrinsic value is $2163.45, which is approximately 16.9% above the current market price of $1850.00.
Key investment considerations:
Given these factors, we believe Gamesys Group PLC is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.