Recent bearish commentary on Sportradar Group (SRAD) is putting its grey market exposure under the microscope, as critics question how sustainable its data and betting partnerships are in loosely regulated jurisdictions.
See our latest analysis for Sportradar Group.
Despite the latest bearish write up, Sportradar’s 1 day share price return of 3.91 percent and year to date share price return of 31.02 percent suggest investors still see meaningful growth potential, even after a 25.98 percent 3 month share price pullback from recent enthusiasm.
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With revenue and earnings still growing double digits, and the share price trading at a sizable discount to analyst targets, is Sportradar a misunderstood compounder, or is the market already discounting all of its future upside?
With Sportradar’s fair value narrative sitting well above the last close of $22.85, the story hinges on sustained growth and rising profitability.
Increasing demand for advanced, real time sports data, in play betting, and micro markets is driving greater adoption of premium, higher margin products like MTS and 4Sight, supporting both revenue acceleration and EBITDA margin expansion.
Curious how this growth engine translates into that higher valuation? The narrative quietly leans on compounding revenue, expanding margins, and a future earnings multiple that might surprise you.
Result: Fair Value of $32.92 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, intensifying competition and the potential renegotiation or loss of key sports data rights could quickly challenge the assumed pricing power and growth runway.
Find out about the key risks to this Sportradar Group narrative.
While narrative models suggest Sportradar is 30.6 percent undervalued, its 61.7 times earnings multiple tells a different story. That is nearly triple the US Hospitality average of 21.3 times and well above a fair ratio of 31.3 times, which implies potential downside if sentiment cools.
See what the numbers say about this price — find out in our valuation breakdown.
If the existing narratives do not quite match your view, dive into the numbers yourself and build a custom storyline in minutes, Do it your way.
A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Sportradar Group.
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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.
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