As of June 16, 2025, Scout Gaming Group AB has a Discounted Cash Flow (DCF) derived fair value of $0.70 per share. With the current market price at $0.27, this represents a potential upside of 158.7%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.70 |
| Potential Upside (5-year) | -277.2% |
| Potential Upside (10-year) | 158.7% |
| Discount Rate (WACC) | 4.7% - 6.0% |
Revenue is projected to grow from $40 million in 12-2024 to $104 million by 12-2034, representing a compound annual growth rate of approximately 10.0%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 40 | 29% |
| 12-2025 | 47 | 17% |
| 12-2026 | 54 | 16% |
| 12-2027 | 62 | 16% |
| 12-2028 | 69 | 11% |
| 12-2029 | 79 | 14% |
| 12-2030 | 85 | 7% |
| 12-2031 | 90 | 6% |
| 12-2032 | 94 | 5% |
| 12-2033 | 99 | 5% |
| 12-2034 | 104 | 5% |
Net profit margin is expected to improve from -16% in 12-2024 to 2% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | (6) | -16% |
| 12-2025 | (5) | -10% |
| 12-2026 | (4) | -7% |
| 12-2027 | (3) | -5% |
| 12-2028 | (2) | -3% |
| 12-2029 | (0) | 0% |
| 12-2030 | 0 | 0% |
| 12-2031 | 0 | 0% |
| 12-2032 | 1 | 1% |
| 12-2033 | 1 | 1% |
| 12-2034 | 2 | 2% |
with a 5-year average of $3 million. Projected CapEx is expected to maintain at approximately 12% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 1 |
| 12-2026 | 2 |
| 12-2027 | 4 |
| 12-2028 | 6 |
| 12-2029 | 8 |
| 12-2030 | 9 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 33 |
| Days Inventory | 0 |
| Days Payables | 28 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2025 | (2) | (1) | 4 | 0 | (6) |
| 2026 | (0) | (1) | 7 | 0 | (6) |
| 2027 | 3 | (1) | 8 | 1 | (5) |
| 2028 | 6 | (0) | 9 | 0 | (2) |
| 2029 | 10 | (0) | 10 | 1 | 0 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -277.2% |
| 10-Year DCF (Growth) | 0.70 | 158.7% |
| 5-Year DCF (EBITDA) | 0.19 | -28.2% |
| 10-Year DCF (EBITDA) | 0.37 | 38.4% |
Is Scout Gaming Group AB (SCOUT.ST) a buy or a sell? Scout Gaming Group AB is definitely a buy. Based on our DCF analysis, Scout Gaming Group AB (SCOUT.ST) appears to be significantly undervalued with upside potential of 158.7%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $0.27.