Key Stats for Flutter Entertainment Stock
- Recent Move: -11.5%
- Current Price: ~$125
- Valuation Model Target: ~$436
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What Happened?
Flutter Entertainment (FLUT) shares crashed this week, caught in a “sympathy sell-off” triggered by its biggest rival.
DraftKings (DKNG) shocked investors by issuing disappointing revenue guidance for 2026, citing potential tax headwinds and slowing customer acquisition.
The market immediately assumed that if DraftKings is struggling, Flutter (parent company of FanDuel) must be facing the exact same problems.
This “contagion” effect dragged the entire sector down. However, Flutter is a fundamentally different beast.
In its most recent earnings call, CEO Peter Jackson emphasized the company’s “unmatched scale and market-leading position,” noting that FanDuel remains the #1 operator in the U.S. with a 47% market share.
While DraftKings fights for profitability, Flutter is already delivering adjusted EBITDA growth of 6% across its diversified global portfolio, which includes huge businesses in the UK, Italy, and Australia that DraftKings simply doesn’t have.
See analysts’ growth forecasts and price targets for Flutter Entertainment stock (It’s free!) >>>
Is Flutter Entertainment Undervalued Today?
The TIKR Model suggests that the market is making a massive mistake by treating Flutter and DraftKings as identical twins.
The model sees a path to $435.65, implying a staggering 248% upside from current levels.
The “duopoly” narrative ignores Flutter’s superior economics.
While rivals burned cash on “irrational” promotions during the NFL season, Flutter maintained discipline.
CFO Rob Coldrake highlighted that despite competitor generosity, FanDuel “delivered an NGR market share of 47% in September.”
This pricing power allows Flutter to weather tax headwinds far better than its peers.
The model also credits Flutter’s new “FanDuel Predict” product, a prediction market launching to target the “half of America” that can’t legally bet on sports yet.
This hidden growth engine is completely missing from the current bearish narrative.
Read the full Flutter Transcript on TIKR to see the Prediction Market Strategy >>>
Valuation Deep Dive
The TIKR Advanced Valuation Model identifies a rare dislocation between price and value.
- Target Price: ~$436
- Current Price: ~$125
- Annualized Return: 37.9%
The “Global” Moat: Unlike DraftKings, which is largely a U.S. story, Flutter is a global powerhouse. Its international division grew revenue 21% year-over-year, providing a steady stream of cash flow that subsidizes its U.S. growth wars. The model values this diversification highly, viewing the recent drop as a “sale” on a high-quality compounder.
The Profitability Gap: The market is pricing FLUT as if its margins will collapse. However, the model projects net income margins expanding to 16.4% over the next decade as the U.S. market matures and marketing spend rationalizes.
Conclusion: A baby thrown out with the bathwater. With a projected 37.9% annualized return and a dominant market position, Flutter is being unfairly punished for its rival’s weakness. The path to $435 is clear for investors who can distinguish between the industry leader and the runner-up.
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How Much Upside Does Flutter Entertainment Stock Have From Here?
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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!
