Betsson (OM:BETS B) Could Be 45% Undervalued As Q2 Earnings Weaken

Betsson (OM:BETS B) is in focus after its second quarter 2026 report showed sales of €310.2 million, alongside lower net income of €29.1 million and reduced earnings per share versus a year earlier.

See our latest analysis for Betsson.

Despite the softer second quarter earnings, the Betsson share price has risen 8.0% over the past month and gained 65.1% on a five year total shareholder return basis. However, the year to date share price return is down 31.7%, suggesting momentum has cooled after a stronger multi year run and that recent buybacks may be influencing how investors weigh future risks and rewards.

If this earnings update has you thinking about where else growth or re rating potential might emerge, it could be worth scanning 109 top founder-led companies

Against a weaker earnings backdrop and a sharp year to date share price decline, yet still a strong five year return, the real test for Betsson now is whether today’s valuation justifies buying on the dip or waiting for a cleaner entry.

Most Popular Narrative: 44.8% Undervalued

At a last close of SEK92.25, the most followed Betsson narrative points to a fair value of SEK167, implying a large valuation gap based on that framework.

The market is pricing this stock as if the B2B collapse is permanent, we believe it is temporary. Even if B2B never fully recovers, the B2C business alone, growing at 10-15% with 21% ROCE and record customers, justifies a price materially above the current 88.65 SEK.

Read the complete narrative.

The narrative centers on resilient B2C earnings power, improving margins over time, and a higher level of future cash generation than the current share price implies. It builds its case around how that earnings mix, reinvestment rate, and required return feed into the SEK167 figure, and how different recovery paths for B2B affect the potential valuation gap.

Result: Fair Value of SEK167 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the Betsson thesis still faces real pressure if the B2B client loss proves long lasting, or if higher gaming taxes squeeze margins more than expected.

Find out about the key risks to this Betsson narrative.

Next Steps

With sentiment on Betsson clearly mixed, now is a good time to look through the details yourself and weigh the trade off between concern and optimism. To frame that view using the same information other investors are watching, start with the 3 key rewards and 2 important warning signs

Looking for more investment ideas beyond Betsson?

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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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