What Is Flutter Entertainment plc's (LON:FLTR) Share Price Doing?

Today we're going to take a look at the well-established Flutter Entertainment plc (LON:FLTR). The company's stock saw significant share price movement during recent months on the LSE, rising to highs of UK£162 and falling to the lows of UK£134. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Flutter Entertainment's current trading price of UK£144 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Flutter Entertainment’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Flutter Entertainment

What Is Flutter Entertainment Worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 17% below my intrinsic value, which means if you buy Flutter Entertainment today, you’d be paying a fair price for it. And if you believe that the stock is really worth £173.27, then there’s not much of an upside to gain from mispricing. Furthermore, Flutter Entertainment’s low beta implies that the stock is less volatile than the wider market.

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. In Flutter Entertainment's case, its revenues over the next few years are expected to grow by 38%, indicating a highly optimistic future ahead. If expense does not increase by the same rate, or higher, this top line growth should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? FLTR’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on FLTR, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, 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.