Modern Times Group (OM:MTG B): Evaluating Valuation After Robust Q3 Growth, Transformation Plan, and Share Buybacks

Modern Times Group MTG (OM:MTG B) just posted strong Q3 2025 organic growth, lifting its outlook for the year. The results were supported by standout in-game content and strong performance from RAID: Shadow Legends.

See our latest analysis for Modern Times Group MTG.

MTG’s recent transformation announcements and bold share buybacks have helped build momentum, reflected in its 18.1% share price return over the last 90 days and a striking 29.4% total return for shareholders in the past year. While short-term volatility remains, longer-term performance suggests renewed investor confidence as the company pursues operational efficiency and growth opportunities.

If strong growth stories like MTG’s appeal to you, it could be the perfect moment to broaden your horizons and discover fast growing stocks with high insider ownership

With MTG shares trading at a significant discount to analyst targets and a fresh transformation plan underway, the key question is whether further upside remains for investors or if the market has already taken into account the group’s next wave of growth.

Most Popular Narrative: 16.8% Undervalued

With Modern Times Group MTG's fair value pegged at SEK 140, compared to its last close of SEK 116.5, the most widely followed narrative takes a bullish stance. This sizable gap has drawn close attention to the company’s near-term prospects and the assumptions supporting this valuation.

Strategic acquisitions (e.g., Plarium) and investments in new proprietary IPs are consolidating MTG's market position, diversifying its portfolio across genres and markets, and increasing the potential for improved net margins by reducing third-party platform dependency. The increasing focus on direct-to-consumer (D2C) monetization, enabled by platform rulings and web store initiatives, offers higher margin potential compared to traditional app store revenue sharing. This translates to better gross and net margin prospects in future periods.

Read the complete narrative.

What’s really driving this ambitious fair value? The secret sauce lies in bold projections for revenue growth, surging margins, and a future profit multiple most investors wouldn’t dare expect. Ready to uncover the foundations of these optimistic assumptions? Click in if you want the full story behind the numbers.

Result: Fair Value of SEK 140 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, MTG’s heavy reliance on a few key titles and rising costs could challenge sustained revenue growth if market trends unexpectedly shift.

Find out about the key risks to this Modern Times Group MTG narrative.

Build Your Own Modern Times Group MTG Narrative

If you have a different perspective or enjoy hands-on exploration, dive into the data and shape your own view in minutes. Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Modern Times Group MTG.

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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.

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