Flutter Entertainment (NYSE:FLUT) Valuation: Exploring Potential After Recent Share Price Declines

Flutter Entertainment (NYSE:FLUT) shares have had a rocky stretch lately, dropping around 8% over the past month and 23% in the past 3 months. Despite strong annual revenue and net income growth, investors seem cautious as trading momentum has turned negative.

See our latest analysis for Flutter Entertainment.

Flutter Entertainment's share price has been losing momentum, with a 1-year total shareholder return of -11.15%. This comes despite the stock delivering a solid 69% total return over three years. The latest slide reflects shifting sentiment as investors weigh current volatility against the company’s strong underlying growth and long-term prospects.

If recent swings have you interested in other opportunities, now is an ideal chance to broaden your perspective and discover fast growing stocks with high insider ownership

With shares trading at a considerable discount to analyst targets and growth momentum still apparent, the key question becomes whether Flutter Entertainment is now an overlooked value or if the market has already accounted for its future gains.

Most Popular Narrative: 32.6% Undervalued

Compared to Flutter Entertainment's last close at $223.03, the most popular narrative assigns a much higher fair value, highlighting a dramatic disconnect between price and expectation. The stage is set for a deep dive into what could be fueling these valuations.

Product innovation, particularly in live betting and personalized betting features (such as "Your Way Parlay," Same Game Parlay Live, and platform migrations across Snai and FanDuel), positions Flutter to capture greater user engagement and wallet share. This supports both revenue growth and long-term margin expansion.

Read the complete narrative.

What’s behind this bullish thesis? Spoiler: it’s not just top-line expansion. The future value hinges on profit margins making a rare leap and earnings projections few expect from a gaming company. Want to know why analysts think this stock deserves such a premium? The narrative's financial leap is unlike anything in the sector.

Result: Fair Value of $330.80 (UNDERVALUED)

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

However, persistent regulatory scrutiny or integration setbacks from recent acquisitions could quickly shift sentiment and challenge Flutter’s bullish valuation outlook.

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

Another View: Multiples Suggest a Steeper Price

While the fair value narrative paints Flutter Entertainment as deeply undervalued, a different perspective emerges when looking at its price-to-earnings ratio. At over 106 times earnings, the shares trade markedly above both the US Hospitality industry average of 21.2x and peer average of 62.4x, and far above the fair ratio of 44.9x implied by historical trends. This sizable gap raises questions about how much optimism is already reflected in the current price. Will investor expectations adjust, or is the market correct in looking beyond traditional benchmarks?

Story Continues

See what the numbers say about this price — find out in our valuation breakdown.NYSE:FLUT PE Ratio as at Nov 2025

Build Your Own Flutter Entertainment Narrative

If you have a different perspective or want to dig into the numbers yourself, you can craft your own story in just a few minutes, then 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.

Looking for more investment ideas?

Don't let market momentum pass you by. Grow your investing edge by searching for stocks with strong upside, breakthrough innovation, or proven cashflow advantages using Simply Wall Street's powerful screeners.

Spot undervalued gems ready for a comeback when you check out these 875 undervalued stocks based on cash flows for stocks trading below their intrinsic value. Capitalize on the next wave of intelligent automation by unlocking opportunities in these 100+ AI penny stocks. These stocks are reshaping industries with artificial intelligence. Tap into steady income potential and stable returns by reviewing these 16 dividend stocks with yields > 3%, which features robust yields and solid foundations.

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.

Companies discussed in this article include FLUT.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

View Comments