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Lottomatica Group (LTMC) Fair Value & Analysis

Consumer Cyclical · IT · Market cap €6.4B

LG Lottomatica Group LTMC · MI
Price€24.16
Fair Value€16.38
Upside-32.2%
Quality64/100
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Healthy Growth
Thin margins · 8.4% net margin
High debt · generates free cash flow
1.64% dividend yield
Mixed vs. peers (6/14)
Moderate moat 64/100
Evidence: High Range €12.29 – €31.90 Share as image

Fair value as of: Jul 17, 2026

From 26 valuation models · updated 24 days ago

Share price −6.0% over the past month.

A solid business, but screening 32% overvalued on our models.

What matters now

  • Solid but not exceptional quality (64/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (€12.29 to €31.90) leaves room in how you read the outcome.
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Price vs Fair Value (3 years)

€27.53 €7.04 Fair Value €16.38 May 2023 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

39‑month range €7.04 – €27.53 · fair‑value band €12.29 – €31.90 · the €24.16 price screens above the €16.38 fair value. Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

Lottomatica Group (LTMC) currently trades at €24.16, while our model-based Fair Value estimate is €16.38, implying the stock looks roughly 32.2% overvalued today. The Quality Score stands at 64/100 (solid quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Lottomatica Group generated revenue of €2.3B at a net margin of 8.4%. Revenue grew 2.6% year over year. It earns a return on equity of 39.0%. Net debt stands at €1.8B. Fundamentals as of Jul 17, 2026

Our scenario range runs from €12.29 (bear case) to €31.90 (bull case); at €24.16, the current price sits within 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. The share trades about 14% below its 52-week high and 32% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -10% fair-value upside, at -32%, LTMC screens richer 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 BearBaseBull Evidence
Highest evidence
Growth DCF €18.07 €38.74 €79.19 80
Residual Income €5.77 €8.47 €115.52 76
Rev-Margin DCF €6.46 €17.57 €38.30 74
All 26 models by family
DCF Models
FCF DCF €19.75 €34.64 €81.06 38
Owner Earnings €5.26 €21.20 €53.44 31
5Y Revenue Exit €6.42 €14.34 €30.70 39
5Y EBITDA Exit €20.69 €43.18 €87.31 41
5Y P/E Exit €9.11 €26.23 €48.91 38
10Y Revenue Exit €10.30 €26.14 €34.40 36
10Y EBITDA Exit €20.83 €56.16 €117.81 37
10Y P/E Exit €12.57 €31.80 €61.90 35
Earnings-Based
Graham-Dodd €5.06 €35.31 €49.55 54
Lynch FV €13.17 €18.82 €24.46 50
PEG = 1.0 €13.17 €18.82 €24.46 46
EPV €6.45 €8.71 €10.66 59
Dividend Discount
Gordon GGM €2.93 €5.84 €8.85 70
DDM Multi-Stage €2.93 €5.05 €6.17 61
Multiples
P/E Multiple €12.29 €16.38 €20.48 63
P/S Multiple €8.64 €11.52 €14.40 58
P/B Multiple €4.17 €5.55 €6.94 55
EV/EBIT €19.03 €27.99 €36.95 53
EV/EBITDA €20.12 €29.44 €38.76 54
EV/Revenue €0.2200 €3.67 €7.13 43
Asset-Based
NCAV (Graham) €0.6900 €0.9300 €1.39 50
Growth DCF
Growth DCF €18.07 €38.74 €79.19 80
Rev-Margin DCF €6.46 €17.57 €38.30 74
Economic Profit
Residual Income €5.77 €8.47 €115.52 76
ROIC Compounder €10.31 €19.14 €24.84 72
Growth Earnings
Growth-Adj P/E €17.18 €24.54 €31.90 68

Widest divergence: DCF Models (€26.23) versus Asset-Based (€0.9300). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) €2.3B
Revenue growth (YoY) +2.6%
Net margin 8.4%
Return on equity 39.0%
Free cash flow €406M FY2025
P/E ratio 35.3
More key figures
Operating margin 22.5%
EPS (TTM) €0.7800
Dividend yield 1.6%
EPS growth (YoY) +40.0%
Net debt €1.8B FY2025

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 64/100

Of which business quality 62 · Market factors (momentum, volatility) 59

Profitability 55
Margins and returns on capital today
Quality Growth 70
Are margins and returns improving?
Cashflow 80
Earnings quality: real cash, not paper profit
Fin. Strength 35
Balance sheet, leverage, solvency risk
Investment 38
Disciplined investing over empire-building
Low Volatility 80
Calm price path (market factor)
Momentum 51
Price trend over the last 3–12 months (market factor)
52W Momentum 49
Distance to the 52-week high (market factor)
Net Issuance 98
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

Lottomatica Group S.p.A., together with its subsidiaries, operates in the gaming market in Italy. The company operates through Online, Sports Franchise, and Gaming Franchise segments.

Full company description

Lottomatica Group S.p.A., together with its subsidiaries, operates in the gaming market in Italy. The company operates through Online, Sports Franchise, and Gaming Franchise segments. The Online segment provides a range of online games, such as sports betting, virtual betting, horse betting, online casino games, bingo, poker, betting exchange, and skill games through the GoldBet.it, Better.it, Lottomatica.it, Betflag.it, Totosì.it, and Planetwin365.it websites. The Sports Franchise segment offers various retail offerings, such as sports betting, virtual betting, and horserace betting under the GoldBet, Intralot, Better, and Planetwin365 brands. The Gaming Franchise segment engages in the management of gaming halls and concession activities for video lottery terminals and amusement with prize machines. Lottomatica Group S.p.A. was incorporated in 2019 and is based in Rome, Italy.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Lottomatica Group reported revenue of €2.2B in FY2025 versus €808M in FY2021, a compound +29.1%/yr. Reported net income was €174M in FY2025.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
€2.2B
Latest YoY
+12.1%
Avg. growth/yr (3Y)
+17.2%
Avg. growth/yr (5Y)
+42.7%
Revenue +29.1%/yr
FY21 €808M
FY22 €1.4B
FY23 €1.6B
FY24 €2.0B
FY25 €2.2B
Net income
FY21 −€57.6M
FY22 €72.1M
FY23 €67.9M
FY24 €98.6M
FY25 €174M

LTMC screens 32% overvalued. Compare with Flutter Entertainment plc →

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Cite: Fair Value Calculator (2026). "Lottomatica Group Fair Value". https://www.fairvalue-calculator.com/stock/LTMC

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Gambling · 54 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 64 · Above median
Fair Value upside −32% · Below median
Return on equity (TTM) 39% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 8% · Above median
Operating margin (TTM) 22% · Top 25%
Revenue growth 3% · Above median
Dividend yield (TTM) 1.6% · Below median
Debt / equity 6.09× · Higher than 75% of peers

Valuation Multiples vs Gambling median · lower = cheaper

P/E (TTM) 35.3× · Pricier than 75% of peers
P/B 22.92× · Pricier than 75% of peers
P/S (TTM) 3.29× · Pricier than 75% of peers
P/FCF 18.3× · Pricier than median
EV/EBITDA 13.8× · 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 0 · sector 29
FUTURE 13 · sector 9
PAST 100 · sector 26
HEALTH 0 · sector 89
DIVIDEND 33 · sector 66

VALUE 0: the price sits above our fair-value range.

Values & ESG

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

Gambling

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

Similar stocks

10 more Gambling stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
Flutter Entertainment plc FLUT $110.66 $88.33 -20%
Evolution AB EVO kr 684.00 kr 974.80 +43%
The Lottery Corporation TLC A$5.62 A$2.99 -47%
Super Group SGHC $14.73 $9.39 -36%
Light & Wonder, Inc LNWO $78.94 $70.17 -11%
Churchill Downs Incorporated CHDN $83.95 $94.74 +13%
FDJ United FDJ €23.24 €20.97 -10%
Brightstar Lottery PLC BRSL $10.71 $17.61 +64%
Tabcorp Holdings TAH A$0.8750 A$0.3700 -58%
Betsson AB BETSB kr 90.60 kr 346.34 +282%

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Frequently asked questions

Is Lottomatica Group (LTMC) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of €16.38 versus a price of €24.16, about −32% (overvalued).
What is the fair value of LTMC?
Our model-based fair value for Lottomatica Group is €16.38 (as of Jul 17, 2026), built from audited fundamentals. The current price is €24.16.
What is the quality score of LTMC?
Lottomatica Group has a Quality Score of 64/100. 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 Lottomatica Group (LTMC)?
Lottomatica Group reported trailing-twelve-month revenue of about €2.3B (latest available figure, as of Jul 17, 2026).
What is the net profit margin of LTMC?
The net profit margin of Lottomatica Group is about 8.4%, meaning it keeps roughly 8.4% of revenue as net income. Based on the latest reported figures.
Does Lottomatica Group pay a dividend?
Lottomatica Group currently shows a dividend yield of about 1.64% relative to its recent price (as of Jul 17, 2026).

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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