Is It Too Late To Consider Buying Flutter Entertainment plc (LON:FLTR)?

Today we're going to take a look at the well-established Flutter Entertainment plc (LON:FLTR). The company's stock saw a significant share price rise of over 20% in the past couple of months on the LSE. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Flutter Entertainment’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Flutter Entertainment

What Is Flutter Entertainment Worth?

Flutter Entertainment appears to be overvalued by 22% at the moment, based on my discounted cash flow valuation. The stock is currently priced at UK£159 on the market compared to my intrinsic value of £129.97. This means that the opportunity to buy Flutter Entertainment at a good price has disappeared! In addition to this, it seems like Flutter Entertainment’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With revenues expected to grow by 53% 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 well and truly priced in FLTR’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe FLTR should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on FLTR for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for FLTR, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

It can be quite valuable to consider what analysts expect for Flutter Entertainment from their most recent forecasts. So feel free to check out our free graph representing analyst forecasts.

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.