Valuation dependent on PAYDAY 3 recovery

PAYDAY 3’s initial sales exceeded our and the company’s expectations. Since then, however, the player count has decreased drastically, and undoubtedly, so have the game’s sales, upon which Starbreeze’s valuation rests. To combat the declining player count, Starbreeze announced a free update containing, among other things, two new heists. If the update and future updates (paid and free) successfully entice players to return, Starbreeze’s current valuation is undoubtedly very low. If, on the other hand, the game does not recover from the troubled start, the company’s prospects are severely dented. We believe PAYDAY 3 should not yet be counted out, and given the current low valuation, we assess the risk-reward ratio as modestly positive.
Starbreeze operates in the gaming industry and focuses on the development, publishing and distribution of computer games and interactive entertainment. The company's portfolio includes both its own games and collaborations with other game developers. The business is aimed at gamers and distributors globally, with the largest operations in Europe. Starbreeze was founded in 1998 and is headquartered in Stockholm, Sweden.
Read more on company pageKey Estimate Figures17.11.2023
2022 | 23e | 24e | |
---|---|---|---|
Omsætning | 127,6 | 627,9 | 260,3 |
vækst-% | 1,5 % | 392,1 % | -58,5 % |
EBIT (adj.) | 6,7 | 256,8 | -26,3 |
EBIT-% (adj.) | 5,3 % | 40,9 % | -10,1 % |
EPS (adj.) | -0,08 | 0,22 | -0,02 |
Udbytte | 0,00 | 0,00 | 0,00 |
Udbytte % | |||
P/E (adj.) | neg. | 0,8 | neg. |
EV/EBITDA | 18,1 | neg. | neg. |