DoubleDown Interactive Co., Ltd.

NasdaqGS:DDI Stock Report

Market Cap: US$730.4m

DoubleDown Interactive Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: DDI ($14.63) is trading below our estimate of fair value ($34.96)

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


Key Valuation Metric

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

Key metric: As DDI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DDI. This is calculated by dividing DDI's market cap by their current earnings.
What is DDI's PE Ratio?
PE Ratio6.4x
EarningsUS$113.98m
Market CapUS$730.42m

Price to Earnings Ratio vs Peers

How does DDI's PE Ratio compare to its peers?

The above table shows the PE ratio for DDI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.2x
GDEV GDEV
9.4x-11.6%US$485.4m
GMGI Golden Matrix Group
21.1xn/aUS$342.9m
GRVY Gravity
7.6xn/aUS$466.1m
PLTK Playtika Holding
14.6x9.9%US$3.1b
DDI DoubleDown Interactive
6.4x0.3%US$730.4m

Price-To-Earnings vs Peers: DDI is expensive based on its Price-To-Earnings Ratio (6.4x) compared to the peer average (-86.8x).


Price to Earnings Ratio vs Industry

How does DDI's PE Ratio compare vs other companies in the US Entertainment Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IH iHuman
4.7xn/aUS$85.73m
RDBX Redbox Entertainment
1.2x-121.8%US$76.65m
GMM Global Mofy AI
0.7xn/aUS$11.91m
MSGM Motorsport Games
0.7xn/aUS$3.47m
DDI 6.4xIndustry Avg. 21.5xNo. of Companies6PE020406080100+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DDI is good value based on its Price-To-Earnings Ratio (6.4x) compared to the US Entertainment industry average (21.6x).


Price to Earnings Ratio vs Fair Ratio

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

DDI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.4x
Fair PE Ratio14.9x

Price-To-Earnings vs Fair Ratio: DDI is good value based on its Price-To-Earnings Ratio (6.4x) compared to the estimated Fair Price-To-Earnings Ratio (14.9x).


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 DDI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$14.63
US$21.75
+48.7%
11.9%US$26.00US$19.00n/a4
Nov ’25US$14.55
US$19.31
+32.7%
20.2%US$26.00US$16.25n/a4
Oct ’25US$15.70
US$19.31
+23.0%
20.2%US$26.00US$16.25n/a4
Sep ’25US$14.56
US$19.31
+32.6%
20.2%US$26.00US$16.25n/a4
Aug ’25US$11.96
US$17.69
+47.9%
20.8%US$24.00US$14.75n/a4
Jul ’25US$12.14
US$17.69
+45.7%
20.8%US$24.00US$14.75n/a4
Jun ’25US$12.00
US$15.58
+29.9%
3.8%US$16.00US$14.75n/a3
May ’25US$10.49
US$14.83
+41.4%
6.9%US$16.00US$13.50n/a3
Apr ’25US$11.45
US$14.83
+29.5%
6.9%US$16.00US$13.50n/a3
Mar ’25US$12.93
US$14.83
+14.7%
6.9%US$16.00US$13.50n/a3
Feb ’25US$9.15
US$14.42
+57.6%
11.0%US$16.00US$12.25n/a3
Jan ’25US$7.35
US$14.42
+96.2%
11.0%US$16.00US$12.25n/a3
Dec ’24US$8.38
US$14.42
+72.0%
11.0%US$16.00US$12.25n/a3
Nov ’24US$8.17
US$15.08
+84.7%
13.6%US$17.00US$12.25US$14.553
Oct ’24US$8.48
US$16.81
+98.3%
20.7%US$22.00US$12.25US$15.704
Sep ’24US$9.99
US$16.81
+68.3%
20.7%US$22.00US$12.25US$14.564
Aug ’24US$8.72
US$17.06
+95.7%
20.6%US$22.00US$12.25US$11.964
Jul ’24US$9.57
US$17.06
+78.3%
20.6%US$22.00US$12.25US$12.144
Jun ’24US$9.25
US$17.06
+84.5%
20.6%US$22.00US$12.25US$12.004
May ’24US$8.25
US$17.06
+106.8%
20.6%US$22.00US$12.25US$10.494
Apr ’24US$7.98
US$18.67
+133.9%
13.4%US$22.00US$16.00US$11.453
Mar ’24US$9.54
US$18.67
+95.8%
13.4%US$22.00US$16.00US$12.933
Feb ’24US$9.80
US$18.33
+87.1%
14.3%US$22.00US$16.00US$9.153
Jan ’24US$8.45
US$18.33
+117.0%
14.3%US$22.00US$16.00US$7.353
Dec ’23US$9.00
US$18.33
+103.7%
14.3%US$22.00US$16.00US$8.383
Nov ’23US$9.90
US$18.33
+85.2%
14.3%US$22.00US$16.00US$8.173

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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