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Even with a powerful appreciation in the equity, I think today’s threat/reward is favourable for the extended term investor. I am not a fan of relative valuation, in particular as a lengthy term investor. Explicitly forecasting out cash flows in such a nascent industry is also fraught with risk and gives false precision. As such, I rely on a reverse DCF6 beneath varying assumptions to present some context. Some investors query Evolution’s dividend policy of paying out a minimum dividend of 50% of net profit over time ( a historical policy as most Swedish firms spend out dividends).
Asia Gaming, an on the internet gaming enterprise from Asia, is a further major competitor but is private. There is no great comparable public corporation, even though there are a couple of private ones (Pragmatic, in addition to Asia Gaming). I have incorporated a list of companies, somewhat heavy in slots, in the Appendix.
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