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Motorsport Games Inc (MSGM) Fair Value & Analysis

Communication Services · US · Market cap $16.5M

MG Motorsport Games Inc logo Motorsport Games Inc MSGM · US
Price$4.10
Fair Value$7.76
Upside+89.3%
Quality69/100
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Weak Growth
Highly profitable · 45.7% net margin
generates free cash flow
Ranks above peers (9/12)
Wide moat 84/100
Evidence: Medium Range $6.04 – $9.45 Share as image

Fair value as of: Jul 24, 2026

From 24 valuation models · updated 17 days ago

Share price −5.1% over the past month.

A solid business, screening 89% undervalued on our models.

What matters now

  • The price is below even our cautious bear case ($6.04). The market is more pessimistic than our downside scenario.
  • Solid quality (69/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

$219.40 $0.8210 Fair Value $7.76 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 24, 2026.

How to read this chart

60‑month range $0.8210 – $219.40 · fair‑value band $6.04 – $9.45 · the $4.10 price screens below the $7.76 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 24, 2026.

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Analysis

Motorsport Games Inc (MSGM) currently trades at $4.10, while our model-based Fair Value estimate is $7.76, implying the stock looks roughly 89.3% undervalued today. The Quality Score stands at 69/100 (solid 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: medium), always confirm before acting.

Over the trailing twelve months, Motorsport Games Inc generated revenue of $13.6M at a net margin of 45.7%. Revenue grew 129.3% year over year. It earns a return on equity of 135.8%. The balance sheet holds a net cash position of $5.0M. Fundamentals as of Jul 24, 2026

Our scenario range runs from $6.04 (bear case) to $9.45 (bull case); at $4.10, 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. The share trades about 26% below its 52-week high and 95% above its 52-week low, currently above its 200-day average. For context, the median of 10 Communication Services peers we cover trades at -19% fair-value upside, at 89%, MSGM 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 $9.73 $13.57 $18.47 72
Growth-Adj P/E $20.20 $28.85 $37.51 68
Rev-Margin DCF $6.80 $9.38 $12.59 67
All 24 models by family
DCF Models
FCF DCF $9.81 $14.12 $19.96 38
Owner Earnings $18.26 $26.79 $38.34 31
5Y Revenue Exit $6.80 $9.28 $12.37 39
5Y EBITDA Exit $7.90 $11.46 $15.64 41
5Y P/E Exit $19.01 $33.39 $49.34 38
10Y Revenue Exit $7.91 $10.40 $13.70 36
10Y EBITDA Exit $8.61 $11.73 $15.95 37
10Y P/E Exit $14.81 $25.14 $39.05 35
Earnings-Based
Graham-Dodd $11.29 $44.89 $61.00 54
Lynch FV $11.13 $15.90 $20.67 50
PEG = 1.0 $11.13 $15.90 $20.67 46
EPV $3.72 $4.03 $4.27 59
Multiples
P/E Multiple $27.39 $36.52 $45.64 63
P/S Multiple $7.11 $9.47 $11.84 58
P/B Multiple $4.26 $5.68 $7.10 55
EV/EBIT $5.91 $7.48 $9.06 53
EV/EBITDA $7.15 $9.14 $11.12 54
EV/Revenue $4.77 $6.30 $7.84 43
Asset-Based
NCAV (Graham) $0.8100 $1.09 $1.62 50
Growth DCF
Growth DCF $9.73 $13.57 $18.47 72
Rev-Margin DCF $6.80 $9.38 $12.59 67
Economic Profit
Residual Income $6.82 $11.63 $210.82 61
ROIC Compounder $3.83 $4.26 $4.69 67
Growth Earnings
Growth-Adj P/E $20.20 $28.85 $37.51 68

Widest divergence: Growth Earnings ($28.85) versus Asset-Based ($1.09). Highest evidence: Growth DCF (72).

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Key figures & financial health

Revenue (TTM) $13.6M
Revenue growth (YoY) +129%
Net margin 45.7%
Return on equity 136%
Free cash flow $4.1M FY2025
P/E ratio 3.4
More key figures
Operating margin 26.9%
EPS (TTM) $1.17
EPS growth (YoY) -82.3%
Net cash $5.0M FY2025

Figures from reported company fundamentals · as of Jul 24, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 69/100

Of which business quality 69 · Market factors (momentum, volatility) 41

Profitability 94
Margins and returns on capital today
Quality Growth 80
Are margins and returns improving?
Cashflow 77
Earnings quality: real cash, not paper profit
Fin. Strength 75
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 4
Calm price path (market factor)
Momentum 51
Price trend over the last 3–12 months (market factor)
52W Momentum 66
Distance to the 52-week high (market factor)
Net Issuance 0
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

Motorsport Games Inc. develops and publishes racing video games for personal computers in the United States. The company operates through Gaming and Esports segments.

Full company description

Motorsport Games Inc. develops and publishes racing video games for personal computers in the United States. The company operates through Gaming and Esports segments. It provides rFactor 2, a realistic racing simulation game; KartKraft, a kart racing simulator; and Le Mans Ultimate, an official game of the FIA World Endurance Championship and 24 Hours of Le Mans. The company also organizes and facilitates esports tournaments, competitions, and events for its licensed racing games, as well as on behalf of third-party racing game developers and publishers. It offers its products for game consoles, personal computer, and mobile platforms through various retail and digital channels, including full-game and downloadable content. The company was founded in 2018 and is headquartered in Miramar, Florida. Motorsport Games Inc. operates as a subsidiary of Driven Lifestyle Group LLC.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Motorsport Games Inc reported revenue of $11.3M in FY2025 versus $15.1M in FY2021, a compound −7.0%/yr. Reported net income was $6.9M in FY2025.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
$11.3M
Latest YoY
+30.0%
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.
+3.0%
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.
−9.9%
Avg. growth/yr (7Y) 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.
−3.7%
Revenue −7.0%/yr
FY21 $15.1M
FY22 $10.3M
FY23 $6.9M
FY24 $8.7M
FY25 $11.3M
Net income
FY21 −$33.2M
FY22 −$36.0M
FY23 −$14.3M
FY24 −$2.8M
FY25 $6.9M

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Cite: Fair Value Calculator (2026). "Motorsport Games Inc Fair Value". https://www.fairvalue-calculator.com/stock/MSGM

Earlier news

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

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 69 · Above median
Fair Value upside +89% · Top 25%
Return on equity (TTM) 136% · Top 25%
Return on assets 28% · Top 25%
Net margin (TTM) 46% · Top 25%
Operating margin (TTM) 27% · Top 25%
Revenue growth 129% · Top 25%

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

P/E (TTM) 3.4× · Cheaper than 75% of peers
P/B 2.44× · Pricier than median
P/S (TTM) 1.22× · Pricier than median
P/FCF 4.1× · Pricier than median
EV/EBITDA 2.7× · Cheaper than 75% of peers

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 100 · sector 11
HEALTH 0 · sector 99
DIVIDEND 0 · sector 41

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.

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Frequently asked questions

Is Motorsport Games Inc (MSGM) overvalued or undervalued?
As of Jul 24, 2026, our model estimates a fair value of $7.76 versus a price of $4.10, about +89% (undervalued).
What is the fair value of MSGM?
Our model-based fair value for Motorsport Games Inc is $7.76 (as of Jul 24, 2026), built from audited fundamentals. The current price is $4.10.
What is the quality score of MSGM?
Motorsport Games Inc has a Quality Score of 69/100. 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 Motorsport Games Inc (MSGM)?
Motorsport Games Inc reported trailing-twelve-month revenue of about $13.6M (latest available figure, as of Jul 24, 2026).
What is the net profit margin of MSGM?
The net profit margin of Motorsport Games Inc is about 45.7%, meaning it keeps roughly 45.7% 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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