Entain plc (ENT.L)

Consumer · LSE · UK

£5.68-4.47% today

Fundamentals

Market cap£3.52B

Dividend yield3.56%

Revenue growth (YoY)+3.7%

Profit margin-12.7%

Return on equity-40.6%

Valuation and ratings

DCF fair value£2.20

Upside to fair value-61.3%

Analyst target (mean)£9.47

Analyst range£5.92 to £12.00

Analysts covering20

Consensus viewstrong buy

Moat score33/100

Overall rating25/100, Sell

Entain plc trades at £5.68, which is 61% above the £2.20 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.

Our moat model scores it 33 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.

About Entain plc

Entain Plc operates as a sports-betting and gaming company in the United Kingdom, Ireland, Italy, rest of Europe, Australia, New Zealand, and internationally. It provides online and multi-channel betting under the Ladbrokes name; street and online betting under the Coral name; online sports betting, casino, and gaming under the Eurobet name; scores, sports information, editorial and social content, and sports focused free-to play games under the 365Scores name; sports betting and gaming operator under the SuperSport and BetCity names; online betting under the bwin name; and sports betting, poker, and casino games under the Crystalbet name. The company also offers online casino and sports betting under the Optibet name; online bingo under the Gala Bingo; online bingo under the Foxy Bingo name; sportsbetting and gaming under the Sports Interaction and Vistabet names; games under the Nutz and Laimz names; game under the boost casino name; online gaming under the Borgata Bingo name; bingo and casino under the Foxy Games name; online bingo, sportsbook, casino, and poker under the betboo; and management software solutions for racing and sportsbooks under the Stadium name. In addition, it offers sports betting and iGaming under the BetMGM and Sportingbet names; sports betting under the Ladbrokes Australia, TAB, betcha, and STS names; Gioco Digitale, an online poker platform; Ladbrokes Belgium, a sports betting platform; online casino under the Ninja Casino and PartyCasino names; casino and live casino under the Gala Casino name; online poker under the PartyPoker name; sports under the Neds and Klondaika names; and iGaming platform under the Finnplay name. The company was incorporated in 2004 and is based in Douglas, Isle of Man.

Industry: GamblingEmployees: 18,735HQ: Isle of Man

ENT.L passes 3 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Consumer staples

The companies that sell what people buy regardless of the economy. Dull, and dull is the entire point.

UK stocks worth a look

The FTSE is a basket of multinationals that happen to be listed in London. That distinction changes everything about what you are buying.

Dividend aristocrats

Companies with long, unbroken records of raising their dividend. The record is the point: it is evidence, not a promise.

Common questions

Is Entain plc (ENT.L) undervalued?

Against our discounted cash flow estimate of £2.20, ENT.L at £5.68 is 61% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.

The full research page for ENT.L, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.

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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.