A Fresh Valuation Look at Flutter Entertainment (NYSE:FLUT) After NHL Enters Prediction Markets

The National Hockey League has just inked a licensing deal with Kalshi and Polymarket, introducing fresh competition to traditional sports-betting companies such as Flutter Entertainment (NYSE:FLUT). This move has investors reassessing the broader market dynamics and potential effects on Flutter’s stock trajectory.

See our latest analysis for Flutter Entertainment.

Flutter Entertainment’s share price has lost momentum lately, down 12.8% over the past month and 20% over the last quarter, with the latest close at $243.92. Still, the longer-term picture is far more upbeat. Total shareholder return sits at 8.5% over the past year and a remarkable 86% across three years, reflecting solid fundamental growth even as recent news and heightened industry competition add some near-term uncertainty.

If you’re watching industry shake-ups like this and want a broader view, now’s a great time to discover fast growing stocks with high insider ownership.

With Flutter Entertainment now trading at a significant discount from its recent highs and analysts still backing the stock, the key question is whether this dip marks a genuine buying opportunity or if the market is already accounting for future growth.

Most Popular Narrative: 26.6% Undervalued

At $243.92, Flutter Entertainment sits far beneath the prevailing narrative fair value estimate of $332.53, framing the recent price slide as a potential opportunity with plenty of debate over what will drive the next move.

Ongoing expansion of online gambling and iGaming in newly regulated and high-growth markets (e.g., Brazil and the U.S.) is expected to accelerate Flutter's revenue and earnings, leveraging increasing global internet and smartphone penetration and regulatory liberalization. Product innovation, particularly in live betting and personalized betting features (e.g., "Your Way Parlay," Same Game Parlay Live, and platform migrations across Snai and FanDuel), positions Flutter to capture greater user engagement and wallet share, supporting both revenue growth and long-term margin expansion.

Read the complete narrative.

Want to know what powers such a bullish price target? See which extraordinary sales growth rates and future profit margins analysts are betting on. Discover how they stack up the numbers to justify this price tag. There is more behind these headline figures than you might expect. The details could upend what you think about this stock's potential.

Result: Fair Value of $332.53 (UNDERVALUED)

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

However, increased regulatory scrutiny and rising net debt levels remain key risks. These factors could challenge Flutter's growth outlook if conditions worsen.

Find out about the key risks to this Flutter Entertainment narrative.

Another View: A Look at Market Multiples

Yet, there is a starkly different message from the market’s price-to-earnings ratio of 116.9x. This figure is more than four times the US Hospitality industry average of 23.9x and much higher than the peer group average of 34.8x. Even compared to the fair ratio of 49x that the market could move toward, Flutter’s valuation appears stretched. While multiples like this sometimes signal optimism for rapid growth, they can also highlight valuation risk if expectations are not met. Could this premium simply be too rich for comfort?

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

Build Your Own Flutter Entertainment Narrative

If the current consensus does not match your perspective or you would rather dig into the details yourself, you can easily build your own view in just a few minutes. Do it your way.

A great starting point for your Flutter Entertainment research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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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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