Member Info for asartara

That 20% growth is already faltering and it will likely disappear completely when new entrants appear

Do you really think the other thousands of Fintech Payment companies are just going to sit back and leave the whole of Africa to CAB ?

Any of the big US Fintech Payment companies will eat CAB for lunch

There is no big moat here or even a small moat

A thousand companies can enter the Africa market tomorrow or whenever they want

CAB profits and growth will then disappear

As I said

Why invest in CAB when you can invest in major UK banks on a PE of 4 and a dividend of over 7% ?

Far too much risk here with CAB when the major banks are just as cheap

Why invest in CAB when you can invest in major UK banks on a PE of 4 and a dividend of over 7% ?

Far too much risk here when major banks are just as cheap

What is the actual value here of all of these unlisted investments?

Nobody really knows because they are not listed on any stock market

Graphcore and all of the other investments do not even make any profits

So it is quite possible that the total actual value here is near to zero

What is the actual value here of all of these unlisted investments?

Nobody really knows because they are not listed on any stock market

Graphcore and all of the other investments do not even make any profits

So it is quite possible that the total actual value here is near to zero

Time to take profits

Many negatives here for the share price going forward

Very low visibility on earnings

Will there be another profit warning and then another?

Profit warnings usually come in three

Earnings are also very low quality here as there are many thousands of other Payments companies that can easily take away market share

Very low moat here for competitors to take market share and destroy any profits

Why are management not buying the shares?

What are they not telling us?

Anything connected with Africa usually ends in disaster

Price here is absurd

PE of just over 2 v industry average PE of 12

Entain PE is 16

A normal PE of 12 gives a share price for 888 of over £4

Debt situation for 888 is also easily manageable

Ebitda is about £400 million and annual debt payments are about £150 million

Fair value is about £4 or £5

Takeover bid or Private Equity bid is also very possible at a price of about £3

888 is perhaps the most undervalued share on the LSE

It is on a PE now of just over 2 with a forecast eps of over 35p in 2025

Fair value is between £4 and £5

So nobody seems to have a clue what this Caliplay “option” actually means

Can anyone explain exactly what this legal action is about?

The press reports are not very clear

Caliplay holds an option to redeem the service fee

What does this even mean?

Does it mean Caliplay can refuse to pay the €34 million?

What does the option allow Caliplay to do?

Does it allow Caliplay to pay zero or to pay less than €34 million?

And why would Playtech have agreed to such an unclear agreement that has now ended up in a Mexican court and is likely to end the JV at a great cost to Playtech?

Nobody is trying to compare 888 with Flutter

Flutter has a Market Cap of about £25 billion

And 888 has a Market Cap of about £500 million

So Flutter is worth about 50x the value of 888

Those who can see the value in 888 are saying that 888 is undervalued on the following basis

Most gambling companies are valued at a multiple of more than 1x Revenue

A very low valuation of 1x Revenue for 888 gives a share price of about £4

The EPS forecast for 888 in 2025 is 35p

This gives a PE of about 3 at the current share price

A normal PE of 12 would give a share price for 888 of over £4

888 is trading on only 4x EBITDA for 2024

So it is not difficult to see the value in 888

If the forecasts are met over the next two years then there is no reason why the 888 share price should not rise to over £4

It is difficult to see the Flutter share price rising by 300% to a Market Cap of £100 billion in the next two years

But it is not difficult to see the 888 share price rising by 300% to a Market Cap of £2 billion and a share price of over £4

A price of £4 gives a very low valuation of 1x Revenue

EPS forecast for 2025 is 35p for a PE of about 3

A normal PE of 12 gives a price of over £4

Trading now on only 4x EBITDA for 2024

https://www.sharecast.com/news/broker-recommendations/berenberg-on-888--14488760.html

It is probably just a matter of time before 888 trades at a similar valuation to all of the other companies in the gambling sector

That is about 2x Revenue

This would give a fair value share price for 888 of 2x Revenue or about £8

Target price perhaps £8.88 ? 🙂

A target price of about £7 or £8 is actually quite reasonable for 888 within the next few years

The forecast EPS is 35p for 2025 and so a very low PE of 10 gives a share price of £3.50 and a PE of 20 gives a share price of £7

Entain has a PE of about 20

And Flutter has a PE of about 70

888 is basically trading at a discount of about 85% to the rest of the gambling sector

There is no actual reason for this huge discount

Flutter trades at 3x Revenue

Entain trades at 2x Revenue

Kindred trades at 2x Revenue

Betsson trades at 2x Revenue

And 888 trades at 0.3x Revenue !

Yes, you read that correctly, 888 trades at 0.3x Revenue !

The 888 share price is therefore trading at a discount of about 85% to Entain, Kindred, and Betsson

And a discount of about 90% to Flutter

So something has to change to correct these extreme differences in valuation

Either Flutter and the rest have to fall a long way which is unlikely

Or the 888 share price has to rise a long way

So it is probably just a matter of time before 888 trades at a similar valuation to these other companies in the gambling sector

This would give a fair value share price for 888 of 2x Revenue or about £8

Interesting to compare the forecasts for Vanquis and IPF on Market Screener

They both look very undervalued

hxxps://www.marketscreener.com/quote/stock/INTERNATIONAL-PERSONAL-FI-4007183/finances/

It shows forecast eps for IPF of 18p in 2023, 21p in 2024, 28p in 2025

And forecast dividend of 10p, 11p, and 12p in 2025

The forecast eps for Vanquis is 42p in 2025

And the forecast dividend for Vanquis is 18p in 2025

hxxps://www.marketscreener.com/quote/stock/VANQUIS-BANKING-GROUP-PLC-9590111/finances/

So with the Vanquis share price now lower than IPF, Vanquis seems to offer a far better investment with a forecast PE of 2.5 in 2025, and a forecast dividend of nearly 17% in 2025

The forecast PE for IPF is over 4 in 2025, and a forecast dividend of 10% in 2025

So they both look like that they may be good investments, but Vanquis looks much better value than IPF now

Interesting to compare the forecasts for Vanquis and IPF on Market Screener

They both look very undervalued

hxxps://www.marketscreener.com/quote/stock/INTERNATIONAL-PERSONAL-FI-4007183/finances/

It shows forecast eps for IPF of 18p in 2023, 21p in 2024, 28p in 2025

And forecast dividend of 10p, 11p, and 12p in 2025

The forecast eps for Vanquis is 42p in 2025

And the forecast dividend for Vanquis is 18p in 2025

hxxps://www.marketscreener.com/quote/stock/VANQUIS-BANKING-GROUP-PLC-9590111/finances/

So with the Vanquis share price now lower than IPF, Vanquis seems to offer a far better investment with a forecast PE of 2.5 in 2025, and a forecast dividend of nearly 17% in 2025

The forecast PE for IPF is over 4 in 2025, and a forecast dividend of 10% in 2025

So they both look like that they may be good investments, but Vanquis looks much better value than IPF now

888 seems to offer much better value now than Flutter or Entain

Flutter trades at about 3x Revenue

Entain trades at about 2x Revenue

And 888 is only trading at about 0.25x Revenue

And a forecast PE of only 3

So the 888 share price could easily rise by about 300% without looking expensive

888 seems to offer much better value now than Flutter or Entain

Flutter trades at about 3x Revenue

Entain trades at about 2x Revenue

And 888 is only trading at about 0.25x Revenue

And a forecast PE of only 3

So the 888 share price could easily rise by about 300% without looking expensive

888 seems to offer much better value now than Flutter or Entain

Flutter trades at about 3x Revenue

Entain trades at about 2x Revenue

And 888 is only trading at about 0.25x Revenue

And a forecast PE of only 3

So the 888 share price could easily rise by about 300% without looking expensive

The review is not a problem as 888 have not done anything wrong

FS Gaming bought a big stake in 888 and they wanted the CEO job but 888 has now broken off all negotiations with them

What more could 888 have done?

They cannot stop people from buying their undervalued shares on the stock market can they?

So the review is just a formality now and so we can expect to see another 50p rise in the 888 share price when they get the all clear

New CEO in place

On target for 35p eps in 2025

On target for 1x Revenue valuation

On target for £4 share price within the next two years

And in the longer term we are still confident of an industry average 2x Revenue valuation for a share price of £8

888 acquires BetLion

Africa is going to be a huge growth market in the next few years and it looks like 888 are going to be one of the leading players

On target results to be released in the next few days

On target for eps of 35p in 2025

Share price will eventually reach £4 for a very low valuation of 1x Revenue

hxxps://www.marketscreener.com/quote/stock/888-HOLDINGS-PLC-4005509/news/888-888AFRICA-acquires-BetLion-to-continue-expansion-across-the-continent-44482056/