Opera (OPRA) Has Slipped On A Pullback, Where Does Fair Value Sit?

Opera (NasdaqGS:OPRA) has drawn renewed attention after a strong multi year share price run, followed by a recent pullback that puts the spotlight squarely on its earnings and dividend profile.

The recent drop in Opera’s share price, with the stock down around 19% over the past 90 days and 13% over the last month, marks a clear loss of short term momentum. At the same time, the 5 year total shareholder return of about 130% keeps the long term story firmly in positive territory.

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Opera now trades well below both analyst targets and some intrinsic value estimates, after a sharp slide in the share price. Where does a fair entry actually sit in that spread?

Most Popular Narrative: 41.5% Undervalued

On the numbers, Opera’s most followed narrative pegs fair value at about $26.29 per share, compared with a last close of $15.39. That gap frames the current pullback as less about a broken story and more about whether the market is ignoring parts of the business model.

Most investors still think of Opera as simply a niche web browser. In reality, OPRA has evolved into a broader internet platform company with businesses spanning browsers, AI-powered productivity tools, digital advertising, gaming software, content discovery, and fintech initiatives. The company serves hundreds of millions of users globally while remaining profitable and generating meaningful cash flow.

See why 9 investors see Opera as 41% undervalued.

According to TheTurntTomato, that broader platform view leans heavily on Opera’s earnings profile and current pricing. Earnings have grown 57.2% over the past year, ahead of its 5 year average of 31.8% per year and faster than the wider Software industry’s 22.2% pace. At the same time, the stock is described as trading at 75.4% below an estimate of fair value. The narrative applies an 8.28% discount rate to those projected cash flows.

The narrative also flags that Opera’s P/E of 10.6x sits well below an estimated fair P/E of 22.8x and significantly beneath the US Software peer average of 47.3x. Paired with a net profit margin of 18.5% that is higher than last year’s 14.5%, the story being told is that the market price does not fully reflect the earnings profile attached to Opera’s AI, advertising and gaming assets.

Result: Fair Value of $26.29 (UNDERVALUED)

Still, Opera’s reliance on search and advertising deals, along with fierce competition from larger browsers copying key features, could quickly blunt this bullish valuation case.

Find out about the key risks to this Opera narrative.

Next Steps

Strong opinions are already forming around Opera’s risk and reward mix. Move quickly, review the underlying data, and weigh the 5 key rewards and 1 important warning sign.

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