Devolver Digital, Inc.

AIM:DEVO Stock Report

Market Cap: UK£119.5m

Devolver Digital Valuation

Is DEVO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DEVO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DEVO (£0.26) is trading below our estimate of fair value (£1.41)

Significantly Below Fair Value: DEVO is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DEVO?

Key metric: As DEVO is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for DEVO. This is calculated by dividing DEVO's market cap by their current revenue.
What is DEVO's PS Ratio?
PS Ratio1.5x
SalesUS$100.06m
Market CapUS$149.78m

Price to Sales Ratio vs Peers

How does DEVO's PS Ratio compare to its peers?

The above table shows the PS ratio for DEVO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average8.9x
GMR Gaming Realms
4.3x11.6%UK£109.4m
FDEV Frontier Developments
0.9x2.0%UK£84.8m
TM17 Team17 Group
1.7x2.2%UK£289.4m
MOS Mobile Streams
28.8xn/aUK£26.6m
DEVO Devolver Digital
1.5x12.1%UK£119.5m

Price-To-Sales vs Peers: DEVO is good value based on its Price-To-Sales Ratio (1.5x) compared to the peer average (8.9x).

Price to Sales Ratio vs Industry

How does DEVO's PS Ratio compare vs other companies in the GB Entertainment Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
CINE Cineworld Group
0.002xn/aUS$6.69m
LVCG Live Company Group
0.1xn/aUS$1.37m
GILD Guild Esports
0.07xn/aUS$327.82k
No more companies available in this PS range
DEVO 1.5xIndustry Avg. 1.5xNo. of Companies3PS00.61.21.82.43+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DEVO is expensive based on its Price-To-Sales Ratio (1.5x) compared to the European Entertainment industry average (1.4x).

Price to Sales Ratio vs Fair Ratio

What is DEVO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DEVO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.5x
Fair PS Ratio1.4x

Price-To-Sales vs Fair Ratio: DEVO is expensive based on its Price-To-Sales Ratio (1.5x) compared to the estimated Fair Price-To-Sales Ratio (1.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DEVO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.26
UK£0.40
+57.7%
18.0%UK£0.49UK£0.31n/a4
Nov ’25UK£0.28
UK£0.40
+46.2%
18.0%UK£0.49UK£0.31n/a4
Oct ’25UK£0.29
UK£0.38
+29.5%
18.4%UK£0.47UK£0.29n/a4
Sep ’25UK£0.33
UK£0.40
+23.2%
18.8%UK£0.49UK£0.31n/a4
Aug ’25UK£0.36
UK£0.40
+11.2%
18.8%UK£0.49UK£0.31n/a4
Jul ’25UK£0.30
UK£0.39
+30.5%
18.8%UK£0.50UK£0.30n/a4
Jun ’25UK£0.23
UK£0.41
+81.1%
18.7%UK£0.50UK£0.30n/a5
May ’25UK£0.23
UK£0.39
+70.1%
18.1%UK£0.50UK£0.31n/a4
Apr ’25UK£0.20
UK£0.39
+99.3%
18.2%UK£0.50UK£0.31n/a4
Mar ’25UK£0.18
UK£0.39
+112.9%
18.2%UK£0.50UK£0.31n/a4
Feb ’25UK£0.19
UK£0.39
+104.5%
18.2%UK£0.50UK£0.31n/a4
Jan ’25UK£0.20
UK£0.39
+100.8%
18.4%UK£0.49UK£0.31n/a4
Dec ’24UK£0.20
UK£0.40
+98.2%
18.9%UK£0.50UK£0.31n/a4
Nov ’24UK£0.26
UK£0.43
+68.2%
14.0%UK£0.51UK£0.35UK£0.284
Oct ’24UK£0.25
UK£0.43
+71.0%
13.9%UK£0.51UK£0.35UK£0.294
Sep ’24UK£0.18
UK£0.31
+71.7%
45.2%UK£0.49UK£0.15UK£0.334
Aug ’24UK£0.18
UK£0.48
+162.2%
34.0%UK£0.76UK£0.28UK£0.365
Jul ’24UK£0.23
UK£0.49
+119.1%
33.6%UK£0.80UK£0.30UK£0.306
Jun ’24UK£0.28
UK£0.50
+74.3%
30.8%UK£0.80UK£0.30UK£0.237
May ’24UK£0.29
UK£0.50
+72.6%
30.8%UK£0.80UK£0.30UK£0.236
Apr ’24UK£0.33
UK£0.58
+79.5%
26.5%UK£0.90UK£0.42UK£0.206
Mar ’24UK£0.34
UK£0.58
+71.5%
26.5%UK£0.90UK£0.42UK£0.186
Feb ’24UK£0.39
UK£0.64
+65.0%
27.3%UK£0.89UK£0.42UK£0.196
Jan ’24UK£0.64
UK£0.91
+42.9%
20.9%UK£1.24UK£0.63UK£0.206
Dec ’23UK£0.67
UK£0.91
+35.4%
20.9%UK£1.24UK£0.63UK£0.206
Nov ’23UK£0.71
UK£0.91
+26.9%
20.9%UK£1.24UK£0.63UK£0.266

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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