At UK£123, Is Flutter Entertainment plc (LON:FLTR) Worth Looking At Closely?
Today we're going to take a look at the well-established Flutter Entertainment plc (LON:FLTR). The company's stock led the LSE gainers with a relatively large price hike in the past couple of weeks. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Flutter Entertainment’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Check out our latest analysis for Flutter Entertainment
Is Flutter Entertainment Still Cheap?
According to my valuation model, Flutter Entertainment seems to be fairly priced at around 14% below my intrinsic value, which means if you buy Flutter Entertainment today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth £142.45, then there’s not much of an upside to gain from mispricing. Furthermore, Flutter Entertainment’s low beta implies that the stock is less volatile than the wider market.
What kind of growth will Flutter Entertainment generate?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With revenues expected to grow by 69% over the next couple of years, the future seems bright for Flutter Entertainment. If the level of expenses is able to be maintained, it looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? It seems like the market has already priced in FLTR’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping an eye on FLTR, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. In terms of investment risks, we've identified 1 warning sign with Flutter Entertainment, and understanding it should be part of your investment process.
If you are no longer interested in Flutter Entertainment, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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