Flutter Entertainment (NYSE:FLUT): Assessing Valuation After FanDuel Buyout, Share Buyback, and CME Partnership

If you have been watching Flutter Entertainment (NYSE:FLUT) lately, the company has just rolled out a series of moves that position it for future growth. The completion of two high-profile deals with Boyd Gaming, acquiring the last 5% slice of FanDuel and extending their collaboration through 2038, means Flutter now has full control of one of its cornerstone assets. In addition, the board authorized a fresh $245 million share buyback, sending a clear signal that management believes in the business’s underlying value. The newly announced partnership with CME Group to create an event contracts platform also points to continued strategic progress for Flutter.

The market appears to be taking notice. Over the past year, Flutter’s shares have gained 35%, with momentum building in recent months. The stock is up 16% year-to-date and 10% in the past quarter. While much of the year’s move followed broader strength in consumer-facing stocks, the most recent string of announcements highlights that Flutter is actively pursuing further growth initiatives. Recent revenue and profit growth numbers provide additional evidence of the company's ongoing progress.

After this series of positive news and strong price momentum, investors may be considering whether Flutter Entertainment is an undervalued opportunity or if the market has already factored in the anticipated growth.

Most Popular Narrative: 14.4% Undervalued

According to the most widely followed narrative, Flutter Entertainment is trading notably below its estimated fair value, as analysts see substantial upside based on future growth and profitability projections.

"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."

Curious what is fueling this bullish price target? This approach leans heavily on eye-catching revenue, profit, and margin projections, as well as a bold future profit multiple. Want to see what happens when analysts bet big on Flutter’s path to 2028? Dive into the narrative’s fair value math to learn what could drive the next breakout.

Result: Fair Value of $345.10 (UNDERVALUED)

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

However, persistent high debt and increasing regulatory scrutiny in key markets could limit profitability. These factors may challenge the current bullish outlook for Flutter Entertainment.

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

Another View: What Do Valuation Multiples Suggest?

While the main narrative points to untapped value, a closer look at standard valuation multiples paints a less optimistic picture. Compared to the broader industry, Flutter appears expensive on this basis. Could the market be getting ahead of itself?

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

Stay updated when valuation signals shift by adding Flutter Entertainment to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Flutter Entertainment Narrative

If the prevailing narratives do not resonate with your perspective, you can quickly dive into the data yourself and construct 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 3 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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