Sportradar Group (NasdaqGS:SRAD): Evaluating Valuation Following Upgraded 2025 Outlook and Strong Revenue Growth

Sportradar Group (NasdaqGS:SRAD) announced stronger than expected third quarter and nine-month results, showing solid revenue growth year on year. The company also revised its full-year 2025 outlook upward, which highlights ongoing momentum.

See our latest analysis for Sportradar Group.

Sportradar’s updated outlook comes on the back of several big milestones this year, including accelerated revenue growth and a completed share buyback program. Investors have responded to this momentum with a strong 26.32% total shareholder return over the past year. The stock’s three-year total return now tops 100%, which suggests growing confidence in the company’s longer-term trajectory despite some recent price volatility.

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With these gains and strong growth forecasts, does Sportradar still trade at an attractive valuation, or has the stock’s recent surge already captured all of its future potential and left little room for buyers today?

Most Popular Narrative: 33% Undervalued

Sportradar Group’s most widely followed valuation narrative puts its fair value at $33.18, well above the recent close at $22.10. This perspective sets the scene for a deeper dive into what is driving the bulls and how those projections stack up against current sentiment.

“Increasing demand for advanced, real-time sports data, in-play betting, and micro markets is driving greater adoption of premium, higher-margin products like MTS and 4Sight, supporting both revenue acceleration and EBITDA margin expansion. Deepening integration with clients and cross-selling/upselling a broader suite of products, as evidenced by 40% of clients now using four or more Sportradar products, boosts take rates, retention and generates high-quality, recurring revenue, positively impacting earnings growth.”

Read the complete narrative.

Curious how premium products, expanding margins, and deep client integration could justify a price target so much higher than the market? The narrative hinges on aggressive profit acceleration and surprising margin expansion that only the full details will reveal. Want to know what this growth thesis is betting on? Dive in and see the assumptions that set this fair value apart.

Result: Fair Value of $33.18 (UNDERVALUED)

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

However, increasing competition or unexpected regulatory changes could quickly erode Sportradar’s growth momentum and challenge the bullish outlook seen so far.

Find out about the key risks to this Sportradar Group narrative.

Another View: High Valuation on Key Metric

While recent fair value estimates signal upside, Sportradar’s current price-to-earnings ratio of 60.2x greatly exceeds both the industry average of 20.7x and its estimated fair ratio of 30.4x. This steep premium means investors may be paying well above historic or sector norms. Could this gap signal added risk if expectations fall?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Sportradar Group Narrative

If you have a different perspective or want to dig into the numbers personally, it only takes a few minutes to build your own story with Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Sportradar Group.

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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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