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PDX: Expanding Game Portfolio Will Drive Long Term Earnings Upside

Update shared on 11 Dec 2025

Fair value Increased 4.96%
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Analysts have nudged their price target for Paradox Interactive higher from SEK 201.67 to SEK 211.67, citing slightly stronger expectations for long term revenue growth, improved profitability, and a marginally higher justified earnings multiple.

What's in the News

  • Europa Universalis V, a major reworking of Paradox Interactive's flagship historical grand strategy series, has launched with new population, trade, and societal systems. The title targets both long term players and new audiences on PC at a premium price point. (Key Developments)
  • Crusader Kings III expands eastward with All Under Heaven, adding China, Japan, and Southeast Asia, alongside new government forms and mechanics that significantly broaden the franchise's geographic and narrative scope. (Key Developments)
  • Surviving Mars: Relaunched consolidates all prior content with upgraded graphics, UI improvements, and new features, positioning the title for a new console generation and offering discounted upgrade paths for existing owners. (Key Developments)
  • Stellaris: Console Edition receives a native PS5 and Xbox Series X|S release and a Season 08 Expansion Pass, bringing The Machine Age expansion, future DLC, and technical enhancements such as 4K support to console players. (Key Developments)
  • Age of Wonders 4 and Cities: Skylines II receive substantial DLC roadmaps, including the Thrones of Blood pack and Bridges & Ports expansion. This underscores Paradox's ongoing live service and add on driven revenue model across its key franchises. (Key Developments)

Valuation Changes

  • The Fair Value Estimate has risen slightly from SEK 201.67 to SEK 211.67, reflecting a modestly higher long-term outlook for the business.
  • The Discount Rate has edged up marginally from 6.91 percent to 6.93 percent, implying a slightly higher required return in the valuation model.
  • Revenue Growth has increased slightly from 14.13 percent to 14.57 percent per year, indicating a small improvement in long-term growth expectations.
  • The Net Profit Margin has risen modestly from 33.33 percent to 33.92 percent, suggesting a somewhat stronger profitability profile over the forecast period.
  • The future P/E has moved up slightly from 25.77x to 26.29x, pointing to a small uplift in the justified earnings multiple applied to Paradox Interactive.

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