Key Takeaways:
- Flutter is expanding into prediction markets with FanDuel Predict while maintaining leadership in U.S. sports betting and iGaming.
- FLUT stock could reasonably reach $250 per share by December 2027, based on our valuation assumptions.
- This implies a total return of 20% from today’s price of $209, with an annualized return of 9% over the next 2.1 years.
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Flutter Entertainment (FLUT) is strengthening its position as the #1 online gaming operator in the U.S. through the upcoming FanDuel Predict launch, exceptional iGaming growth, and strategic market expansion powered by its diversified international portfolio.
The gaming leader serves customers through FanDuel in the U.S. and through international brands, including Betfair, Paddy Power, Sisal, and Snai, offering sports betting, iGaming, and, soon, prediction markets across multiple jurisdictions.
Flutter delivered Q3 revenue of $4.2 billion, up 17% year-over-year, with adjusted EBITDA growth of 6%. While customer-friendly NFL results impacted near-term performance, CEO Peter Jackson emphasized the underlying business remains strong with over 14 million average monthly players.
Flutter demonstrates strong execution under Jackson’s leadership. The company grew U.S. iGaming revenue 44% with 27% market share, maintained 47% sportsbook market share despite heightened competition, and completed strategic acquisitions while delivering on a $300 million cost transformation program.
Here’s why Flutter stock could provide strong returns through 2027 as it captures the prediction market opportunity while scaling its market-leading gaming platforms.
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What the Model Says for Flutter Entertainment Stock
We analyzed the upside potential for Flutter stock using valuation assumptions based on its U.S. market leadership, international diversification, and significant TAM expansion from prediction markets.
Based on estimates of 15.6% annual revenue growth, 12% operating margins, and a normalized P/E multiple of 24x, the model projects Flutter stock could rise from $209 to $250 per share.
That would be a 20% total return, or a 9% annualized return over the next 2.1 years.
Our Valuation Assumptions
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Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for FLUT stock:
1. Revenue Growth: 15.6%
Flutter delivered a strong Q3 performance with 17% revenue growth. The company expects full-year 2025 revenue of $16.69 billion, representing 19% year-over-year growth.
U.S. revenue grew 9% with exceptional iGaming performance up 44%. It added over 500 new slot titles and launched record-breaking exclusive content. iGaming AMP growth of 30% demonstrates a significant runway as penetration remains well below long-term expectations.
The December launch of FanDuel Predict represents a transformative opportunity. Management plans to invest $40-50 million in Q4 and $200-300 million in 2026 to capture the prediction markets in states without access to sports betting.
International revenue grew 21% with strong organic iGaming growth of 10%, particularly in Turkey and Italy. The Snai integration is progressing well, with customer migration on track for H1 2026.
We used a 15.6% forecast, reflecting Flutter’s ability to scale FanDuel Predict while maintaining U.S. market leadership and capitalizing on iGaming penetration growth, balanced against the ramp in prediction market investment.
2. Operating margins: 12%
Flutter delivered operating margins of 12.3% in the most recent twelve months. The company reported $2.9 billion in adjusted EBITDA for 2025 at the midpoint of its guidance, representing 24% year-over-year growth.
Management continues to execute its $300 million cost transformation program, with excellent progress on technology re-platforming and integration.
The Boyd payment of $205 million for improved market access terms will deliver approximately $65 million in annual savings.
FanDuel Predict investment represents near-term margin headwind but opens massive TAM expansion. Management will monitor returns closely, with the flexibility to accelerate when performance warrants.
We forecast 12% operating margins, reflecting Flutter’s proven ability to balance growth investment with profitability improvement and long-term margin expansion as scale benefits flow through.
3. Exit P/E Multiple: 24x
Flutter stock currently trades at a P/E multiple of 23.9x, reflecting its leadership position in the high-growth U.S. market and diversified international portfolio.
Historical P/E multiples show the stock has averaged 28.9x over the past year and 31.6x over longer periods, demonstrating sustained premium valuations for its market-leading positions.
We maintain a 24x exit multiple given Flutter’s unmatched scale as the #1 U.S. operator, first-mover advantage in prediction markets through the CME partnership and Betfair expertise, and international diversification.
Management returned $1.12 billion to shareholders through buybacks and committed to $5 billion in total capital returns over the coming years, demonstrating confidence in cash generation.
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What Happens If Things Go Better or Worse?
Different scenarios for FLUT stock through 2030 show varied outcomes based on prediction market adoption and new profit streams: (these are estimates, not guaranteed returns):
- Low Case: Prediction markets disappoint, and competition intensifies → 12% annual returns
- Mid Case: FanDuel Predict gains traction and market leadership maintained → 20% annual returns
- High Case: Prediction markets accelerate state legalization, and iGaming expands rapidly → 20% annual returns.
Even in the conservative case, Flutter stock offers positive returns supported by its dominant U.S. position, diversified international earnings, and disciplined capital allocation.
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How Much Upside Does Flutter Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
