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Playtech plc (PTEC) Fair Value & Analysis

Consumer Cyclical · GB · Market cap 1.1B GBX

PP Playtech plc PTEC · LSE
Price£3.82
Fair Value£3.24
Upside-15.3%
Quality66/100
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Weak Growth
Highly profitable · 194.4% net margin
Low debt · generates free cash flow
Trails peers (3/12)
Moderate moat 60/100
Evidence: High Range £2.43 – £4.93 Share as image

Fair value as of: Aug 13, 2026

From 23 valuation models · updated 2 days ago

Share price −1.5% over the past month.

A solid business, but screening 15% overvalued on our models.

What matters now

  • Solid but not exceptional quality (66/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (£2.43 to £4.93) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

£8.06 £2.32 Fair Value £3.24 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range £2.32 – £8.06 · fair‑value band £2.43 – £4.93 · the £3.82 price screens above the £3.24 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Playtech plc (PTEC) currently trades at £3.82, while our model-based Fair Value estimate is £3.24, implying the stock looks roughly 15.3% overvalued today. The Quality Score stands at 66/100 (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).

Trailing-twelve-month revenue stands at £764M. Revenue declined 10.0% year over year. It earns a return on equity of -10.6%. Net debt stands at £12.0M. Fundamentals as of Aug 13, 2026

Our scenario range runs from £2.43 (bear case) to £4.93 (bull case); at £3.82, 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. For context, the median of 10 Consumer Cyclical peers we cover trades at -10% fair-value upside, at -15%, PTEC 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 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 £2.00 £3.21 £5.01 80
Residual Income £15.28 £18.50 £81.37 76
Rev-Margin DCF £1.82 £3.05 £4.70 74
All 23 models by family
DCF Models
FCF DCF £2.04 £3.46 £5.70 38
Owner Earnings £59.44 £102.74 £171.29 31
5Y Revenue Exit £1.82 £3.08 £4.81 39
5Y EBITDA Exit £1.07 £1.51 £2.02 41
5Y P/E Exit £51.40 £107.72 £174.75 38
10Y Revenue Exit £1.83 £3.01 £4.83 36
10Y EBITDA Exit £1.42 £1.94 £2.64 37
10Y P/E Exit £32.24 £74.01 £137.78 35
Earnings-Based
Graham-Dodd £35.67 £179.71 £248.12 54
Lynch FV £48.72 £69.61 £90.49 50
PEG = 1.0 £48.72 £69.61 £90.49 46
Dividend Discount
Gordon GGM £48.50 £87.39 £120.30 70
DDM Multi-Stage £48.50 £79.83 £93.35 61
Multiples
P/E Multiple £86.55 £115.40 £144.25 63
P/S Multiple £2.43 £3.24 £4.05 58
P/B Multiple £14.97 £19.96 £24.95 55
EV/EBITDA £0.5500 £0.7000 £0.8600 54
EV/Revenue £1.72 £2.41 £3.10 43
Asset-Based
NCAV (Graham) £2.49 £3.34 £4.99 50
Growth DCF
Growth DCF £2.00 £3.21 £5.01 80
Rev-Margin DCF £1.82 £3.05 £4.70 74
Economic Profit
Residual Income £15.28 £18.50 £81.37 76
Growth Earnings
Growth-Adj P/E £75.97 £108.53 £141.08 68

Widest divergence: Growth Earnings (£108.53) versus Growth DCF (£3.05). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 764M GBX
Revenue growth (YoY) -10.0%
Net margin 194%
Return on equity -10.6%
Free cash flow 49.4M GBX FY2025
Operating margin -14.0%
More key figures
EPS (TTM) £-0.4800
EPS growth (YoY) +25,476%
Net debt 12.0M GBX FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 66/100

Of which business quality 63 · Market factors (momentum, volatility) 50

Profitability 76
Margins and returns on capital today
Quality Growth 52
Are margins and returns improving?
Cashflow 29
Earnings quality: real cash, not paper profit
Fin. Strength 66
Balance sheet, leverage, solvency risk
Investment 93
Disciplined investing over empire-building
Low Volatility 56
Calm price path (market factor)
Momentum 47
Price trend over the last 3–12 months (market factor)
52W Momentum 48
Distance to the 52-week high (market factor)
Net Issuance 74
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

Playtech plc, a technology company, provides gambling software, services, content, and platform technologies. It offers technologies across various product verticals, including casino, live casino, sports betting, virtual sports, bingo, and poker.

Full company description

Playtech plc, a technology company, provides gambling software, services, content, and platform technologies. It offers technologies across various product verticals, including casino, live casino, sports betting, virtual sports, bingo, and poker. The company also owns intellectual property rights; licenses the software; provides online bingo and casino software; casino management systems; licenses Alderney for online gaming and Bingo B2C operations; poker and bingo network; and owns video slots intellectual property. In addition, it engages in owning bingo software intellectual property and bingo hardware; developing and provision of online gaming slots; provision of marketing support services, software development and support services; development of software for fixed odds betting terminals and casino machines; Software development and operational support; Consulting and online technical support, data mining processing and advertising services; and operates poker community business. Further, the company designs, develops, and manufactures online software; offers management services; retail and digital sports betting; and develops mobile sportsbook betting platform. It operates in the United Kingdom, Latvia, Italy, Cyprus, Australia, Estonia, Alderney, and internationally. Playtech plc was founded in 1999 and is headquartered in London, the United Kingdom.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Playtech plc reported revenue of £750M in FY2025 versus £1.2B in FY2021, a compound −11.2%/yr. Reported net income was £1.5B in FY2025, compounding +21.2%/yr from FY2021.

Growth Quality 31/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
£750M
Latest YoY
−11.6%
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.
−22.4%
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.
−7.0%
Avg. growth/yr (22Y) 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.
+24.8%
Revenue −11.2%/yr
FY21 £1.2B
FY22 £1.6B
FY23 £772M
FY24 £848M
FY25 £750M
Net income +21.2%/yr
FY21 £675M
FY22 £87.6M
FY23 £105M
FY24 −£23.9M
FY25 £1.5B

PTEC screens 15% overvalued. Compare with Flutter Entertainment plc →

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Cite: Fair Value Calculator (2026). "Playtech plc Fair Value". https://www.fairvalue-calculator.com/stock/PTEC

Peer Group

Gambling · 57 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 66 · Above median
Fair Value upside −13% · Below median
Return on assets -2% · Bottom 25%
Net margin (TTM) 194% · Top 25%
Operating margin (TTM) -14% · Bottom 25%
Revenue growth -10% · Bottom 25%
Debt / equity 0.22× · Higher than median

Valuation Multiples vs Gambling median · lower = cheaper

P/B 1.05× · Cheaper than median
P/S (TTM) 1.90× · Pricier than median
P/FCF 29.4× · Pricier than 75% of peers
PEG 1.83× · Pricier 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 16 · sector 33
FUTURE 0 · sector 5
PAST 0 · sector 24
HEALTH 89 · sector 90
DIVIDEND 0 · sector 70

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 Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Flutter Entertainment plc FLUT $98.08 $88.33 -10%
Evolution AB EVO kr 737.20 kr 973.92 +32%
The Lottery Corporation TLC A$5.43 A$2.99 -45%
Super Group SGHC $12.81 $9.39 -27%
Light & Wonder, Inc LNWO $89.75 $77.19 -14%
Lottomatica Group LTMC €24.25 €16.45 -32%
Churchill Downs Incorporated CHDN $88.53 $88.74 +0%
FDJ United FDJ €22.33 €20.97 -6%
Brightstar Lottery PLC BRSL $11.31 $17.61 +56%
Tabcorp Holdings TAH A$0.9150 A$0.6000 -34%

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Frequently asked questions

Is Playtech plc (PTEC) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of £3.24 versus a price of £3.82, about −15% (overvalued).
What is the fair value of PTEC?
Our model-based fair value for Playtech plc is £3.24 (as of Aug 13, 2026), built from audited fundamentals. The current price is £3.82.
What is the quality score of PTEC?
Playtech plc has a Quality Score of 66/100. 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 Playtech plc (PTEC)?
Playtech plc reported trailing-twelve-month revenue of about £764M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of PTEC?
The net profit margin of Playtech plc is about 194.4%, meaning it keeps roughly 194.4% 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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