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Frontier Developments plc (FDEV) Fair Value & Analysis

Communication Services · GB · Market cap 146M GBX

FD Frontier Developments plc FDEV · LSE
Price£4.20
Fair Value£8.02
Upside+91.2%
Quality79/100
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Healthy Growth
Solidly profitable · 19.4% net margin
Low debt · generates free cash flow
Ranks above peers (9/13)
Wide moat 65/100
Evidence: High Range £6.01 – £10.02 Share as image

Fair value as of: Jul 18, 2026

From 26 valuation models · updated 23 days ago

Share price +0.6% over the past month.

A strong business, screening 91% undervalued on our models.

What matters now

  • The rarer combination: high quality (79/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (£6.01). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

£27.44 £1.02 Fair Value £8.02 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range £1.02 – £27.44 · fair‑value band £6.01 – £10.02 · the £4.20 price screens below the £8.02 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Frontier Developments plc (FDEV) currently trades at £4.20, while our model-based Fair Value estimate is £8.02, implying the stock looks roughly 91.2% undervalued today. The Quality Score stands at 79/100 (high quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Frontier Developments plc generated revenue of £103M at a net margin of 19.4%. Revenue grew 26.1% year over year. It earns a return on equity of 22.7%. The balance sheet holds a net cash position of £23.0M. Fundamentals as of Jul 18, 2026

Our scenario range runs from £6.01 (bear case) to £10.02 (bull case); at £4.20, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Communication Services peers we cover trades at -19% fair-value upside, at 91%, FDEV screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF £12.30 £18.14 £25.96 80
Residual Income £2.60 £3.29 £7.86 76
Rev-Margin DCF £7.12 £9.52 £12.66 74
All 26 models by family
DCF Models
FCF DCF £12.53 £19.33 £29.17 38
Owner Earnings £11.86 £18.26 £27.51 31
5Y Revenue Exit £7.12 £9.37 £12.07 39
5Y EBITDA Exit £10.29 £15.91 £22.80 41
5Y P/E Exit £9.99 £15.30 £21.24 38
10Y Revenue Exit £9.20 £11.93 £15.54 36
10Y EBITDA Exit £11.06 £16.03 £23.22 37
10Y P/E Exit £10.89 £15.65 £22.11 35
Earnings-Based
Graham-Dodd £3.21 £15.11 £20.78 54
Lynch FV £4.01 £5.72 £7.44 50
PEG = 1.0 £4.01 £5.72 £7.44 46
EPV £2.84 £3.03 £3.19 59
Dividend Discount
Gordon GGM £0.6000 £1.01 £1.31 70
DDM Multi-Stage £0.6000 £0.9600 £1.08 61
Multiples
P/E Multiple £7.78 £10.38 £12.97 63
P/S Multiple £6.01 £8.02 £10.02 58
P/B Multiple £6.01 £8.02 £10.02 55
EV/EBIT £4.24 £5.25 £6.25 53
EV/EBITDA £9.56 £12.33 £15.11 54
EV/Revenue £3.51 £4.49 £5.47 43
Asset-Based
NCAV (Graham) £1.37 £1.84 £2.74 50
Growth DCF
Growth DCF £12.30 £18.14 £25.96 80
Rev-Margin DCF £7.12 £9.52 £12.66 74
Economic Profit
Residual Income £2.60 £3.29 £7.86 76
ROIC Compounder £2.87 £3.24 £3.68 72
Growth Earnings
Growth-Adj P/E £6.49 £9.28 £12.06 68

Widest divergence: DCF Models (£15.65) versus Dividend Discount (£0.9600). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 103M GBX
Revenue growth (YoY) +26.1%
Net margin 19.4%
Return on equity 22.7%
Free cash flow 42.0M GBX FY2025
P/E ratio 8.4
More key figures
Operating margin 13.1%
EPS (TTM) £0.5000
EPS growth (YoY) +82.0%
Net cash 23.0M GBX FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 79/100

Of which business quality 80 · Market factors (momentum, volatility) 57

Profitability 64
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 67
Calm price path (market factor)
Momentum 57
Price trend over the last 3–12 months (market factor)
52W Momentum 47
Distance to the 52-week high (market factor)
Net Issuance 62
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Frontier Developments plc develops and publishes video games for the interactive entertainment sector. It develops games using its cross-platform technology, Cobra. The company was incorporated in 1994 and is headquartered in Cambridge, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Frontier Developments plc reported revenue of £90.6M in FY2025 versus £90.7M in FY2021, a compound −0.0%/yr. Reported net income was £16.4M in FY2025, compounding −6.6%/yr from FY2021.

Growth Quality 75/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
£90.6M
Latest YoY
+1.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−7.4%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.6%
Avg. growth/yr (15Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+16.1%
Revenue −0.0%/yr
FY21 £90.7M
FY22 £114M
FY23 £105M
FY24 £89.3M
FY25 £90.6M
Net income −6.6%/yr
FY21 £21.6M
FY22 £9.6M
FY23 −£20.9M
FY24 −£21.5M
FY25 £16.4M

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Cite: Fair Value Calculator (2026). "Frontier Developments plc Fair Value". https://www.fairvalue-calculator.com/stock/FDEV

Peer Group

Electronic Gaming & Multimedia · 152 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 79 · Top 25%
Fair Value upside +91% · Top 25%
Return on equity (TTM) 23% · Top 25%
Return on assets 6% · Above median
Net margin (TTM) 19% · Above median
Operating margin (TTM) 13% · Above median
Revenue growth 26% · Above median
Debt / equity 0.00× · Lower than median

Valuation Multiples vs Electronic Gaming & Multimedia median · lower = cheaper

P/E (TTM) 8.4× · Cheaper than 75% of peers
P/B 2.07× · Pricier than median
P/S (TTM) 1.91× · Pricier than median
P/FCF 4.7× · Pricier than median
EV/EBITDA 9.5× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 15
FUTURE 100 · sector 10
PAST 91 · sector 11
HEALTH 100 · sector 99
DIVIDEND 0 · sector 41

Insider activity: 30/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Electronic Gaming & Multimedia stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
NetEase, Inc 9999 HK$202.60 HK$192.74 -5%
Electronic Arts Inc EA $207.27 $76.57 -63%
Take-Two Interactive Software, Inc TTWO $237.04 $60.45 -74%
Roblox Corporation RBLX $57.07 $21.20 -63%
Zhejiang Century Huatong Group 002602 ¥14.04 ¥14.68 +5%
KRAFTON, Inc 259960 240,500 KRW 395,557 KRW +64%
Kunlun Tech Co 300418 ¥44.61 ¥6.87 -85%
Giant Network Group 002558 ¥29.98 ¥15.69 -48%
International Games System Co 3293 704.00 TWD 568.16 TWD -19%
37 Interactive Entertainment Network Technology Group 002555 ¥19.02 ¥22.29 +17%

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Frequently asked questions

Is Frontier Developments plc (FDEV) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of £8.02 versus a price of £4.20, about +91% (undervalued).
What is the fair value of FDEV?
Our model-based fair value for Frontier Developments plc is £8.02 (as of Jul 18, 2026), built from audited fundamentals. The current price is £4.20.
What is the quality score of FDEV?
Frontier Developments plc has a Quality Score of 79/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Frontier Developments plc (FDEV)?
Frontier Developments plc reported trailing-twelve-month revenue of about £103M (latest available figure, as of Jul 18, 2026).
What is the net profit margin of FDEV?
The net profit margin of Frontier Developments plc is about 19.4%, meaning it keeps roughly 19.4% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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