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Paradox Interactive AB (publ)
F:ETA

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Paradox Interactive AB (publ)
F:ETA
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Price: 11.78 EUR -2.81% Market Closed
Market Cap: €1.2B

P/OCF

11.4
Current
29%
Cheaper
vs 3-y average of 16.1

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
11.4
=
Market Cap
€13.6B
/
Operating Cash Flow
kr1.2B

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
11.4
=
Market Cap
€13.6B
/
Operating Cash Flow
kr1.2B

Valuation Scenarios

Paradox Interactive AB (publ) is trading below its 3-year average

If P/OCF returns to its 3-Year Average (16.1), the stock would be worth €16.62 (41% upside from current price).

Statistics
Positive Scenarios
3/4
Maximum Downside
-7%
Maximum Upside
+53%
Average Upside
26%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple 11.4 €11.78
0%
3-Year Average 16.1 €16.62
+41%
5-Year Average 17.5 €18.05
+53%
Industry Average 10.7 €11
-7%
Country Average 13.1 €13.56
+15%

Forward P/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
Close
Market Cap P/OCF P/E
SE
Paradox Interactive AB (publ)
F:ETA
13.6B EUR 11.4 112.5
US
Activision Blizzard Inc
LSE:0H8X
74.1B USD 29.1 34.2
CN
NetEase Inc
NASDAQ:NTES
71.3B USD 9.7 14.5
JP
Nintendo Co Ltd
TSE:7974
9.2T JPY 56.7 22.9
US
Electronic Arts Inc
NASDAQ:EA
50.7B USD 20.1 74.4
SG
Sea Ltd
NYSE:SE
46.7B USD 9.3 29.8
US
Roblox Corp
NYSE:RBLX
39.7B USD 22.6 -38.1
US
Take-Two Interactive Software Inc
NASDAQ:TTWO
39B USD 59.5 -10
CN
Zhejiang Century Huatong Group Co Ltd
SZSE:002602
121.6B CNY 15.5 32.3
JP
Konami Holdings Corp
TSE:9766
2.7T JPY 22 31.2
JP
Nexon Co Ltd
TSE:3659
2.1T JPY 12.1 22.7

Market Distribution

Lower than 99% of companies in Sweden
Percentile
1st
Based on 1 216 companies
1st percentile
1
Low
0.1 — 8.9
Typical Range
8.9 — 19.5
High
19.5 —
Distribution Statistics
Sweden
Min 0.1
30th Percentile 8.9
Median 13.1
70th Percentile 19.5
Max 886.8

Paradox Interactive AB (publ)
Glance View

Market Cap
1.2B EUR
Industry
Media

Paradox Interactive AB, a stalwart in the video game industry, is known for its deep, intricate grand strategy games that have captivated a niche yet passionate audience worldwide. The company, headquartered in Stockholm, Sweden, has carved out a unique position in the gaming world by developing complex and historically immersive games like "Europa Universalis," "Crusader Kings," and "Hearts of Iron." Paradox's development philosophy revolves around creating games that offer expansive freedom and long-term replayability, allowing players to shape their virtual realities within historical and fantastical settings. This dedication to developing nuanced gaming experiences not only fosters loyalty among its player base but also leads to robust engagement on platforms like Steam, where active communities discuss strategies, mods, and game updates. Revenue generation for Paradox Interactive is anchored in its effective use of the games-as-a-service model. The company releases downloadable content (DLC) and expansion packs that extend the lifecycle of their games, keeping the content fresh and engaging for existing players and attracting new ones. By continuously updating and expanding their games, Paradox not only capitalizes on initial game sales but also creates a steady stream of revenue post-launch. Additionally, Paradox has expanded its portfolio by acquiring smaller studios and embracing publishing for third-party developers, broadening its influence in both the PC and console markets. This strategic combination of innovative new titles, expansions, and acquisitions propels Paradox Interactive's sustainable growth in a competitive gaming industry landscape.

ETA Intrinsic Value
15.27 EUR
Undervaluation 23%
Intrinsic Value
Price €11.78
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