As of May 27, 2025, Sciplay Corp's estimated intrinsic value ranges from $2.20 to $33.83 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $33.83 | +47.5% |
| Discounted Cash Flow (5Y) | $27.57 | +20.2% |
| Dividend Discount Model (Multi-Stage) | $14.47 | -36.9% |
| Dividend Discount Model (Stable) | $2.20 | -90.4% |
| Earnings Power Value | $24.54 | +7.0% |
Is Sciplay Corp (SCPL) undervalued or overvalued?
With the current market price at $22.94, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Sciplay Corp'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 | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.56 | 0.9 |
| Cost of equity | 6.5% | 9.9% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 5.0% | 6.7% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 5.6% | 7.3% |
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 | $28 | $3,056M | 77.2% |
| 10-Year Growth | $34 | $3,839M | 61.9% |
| 5-Year EBITDA | $26 | $2,798M | 75.1% |
| 10-Year EBITDA | $32 | $3,587M | 59.3% |
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 | $170M |
| Discount Rate (WACC) | 7.3% - 5.6% |
| Enterprise Value | $2,324M - $3,028M |
| Net Debt | $(395)M |
| Equity Value | $2,719M - $3,423M |
| Outstanding Shares | 125M |
| Fair Value | $22 - $27 |
| Selected Fair Value | $24.54 |
| Metric | Value |
|---|---|
| Market Capitalization | $2871M |
| Enterprise Value | $2476M |
| Trailing P/E | 122.69 |
| Forward P/E | 18.13 |
| Trailing EV/EBITDA | 13.25 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 1.07 |
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% | $10.15 |
| Discounted Cash Flow (5Y) | 25% | $6.89 |
| Dividend Discount Model (Multi-Stage) | 20% | $2.89 |
| Dividend Discount Model (Stable) | 15% | $0.33 |
| Earnings Power Value | 10% | $2.45 |
| Weighted Average | 100% | $22.72 |
Based on our comprehensive valuation analysis, Sciplay Corp's weighted average intrinsic value is $22.72, which is approximately 1.0% below the current market price of $22.94.
Key investment considerations:
Given these factors, we believe Sciplay Corp is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.