Update shared on 27 Nov 2025
Fair value Decreased 12%Analysts have revised their fair value estimate for East Side Games Group downward from $1.25 to $1.10 per share. They cite updated projections for higher revenue growth. However, these are offset by significantly lower profit margins and a higher discount rate.
What's in the News
- East Side Games Group continues strategic growth with new acquisitions under consideration and the introduction of its fifth Match title, Trailer Park Boys Match, launched in Canada in October (Company Announcement).
- The company reported its third quarter 2025 financial results and highlighted its ongoing commitment to deepening user engagement, expanding monetization, and increasing efficiency through data-driven marketing (Company Announcement).
- Significant product updates include the upcoming launch of the "Collab Pass" feature in RuPaul's Drag Race Match Queen and the "Drop Pass" seasonal monetization feature in Squishmallows Match. Both are expected in the fourth quarter (Company Announcement).
- International expansion and refined audience targeting are priorities. Geo-targeted campaigns and localized creative are aimed at driving growth and retention (Company Announcement).
- From July to September 2025, East Side Games Group repurchased 147,000 shares, completing a total repurchase of 2,429,579 shares, representing 3.07% of outstanding shares, for CAD 1.58 million (Company Announcement).
Valuation Changes
- Fair Value Estimate: Lowered from CA$1.25 to CA$1.10 per share.
- Discount Rate: Increased slightly from 7.92% to 8.12%.
- Revenue Growth: Projected growth rate has risen from 14.06% to 18.33%.
- Net Profit Margin: Expected margin has fallen significantly from 19.11% to 3.61%.
- Future P/E Ratio: Increased sharply from 4.04x to 22.02x.
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