Key Takeaways:
- Flutter is executing strong operational strategies across the U.S. and International markets with product-led growth.
- FLUT stock could reach $380/share by December 2027 based on valuation model assumptions.
- This translates to total returns of 34% from today’s price of $283/share, with an annualized return of 14% over 2.2 years.
Flutter Entertainment (FLUT) is strengthening its position as the world’s largest online betting and gaming company through product innovation, international expansion, and operational efficiency improvements.
The company operates through two main divisions: U.S. markets (led by FanDuel) and International markets (including brands like Sky Betting & Gaming, Sisal, PokerStars, and Betfair), serving approximately 16 million monthly players globally.
Core offerings include online sports betting, iGaming products, betting exchanges, and poker platforms delivered through market-leading mobile apps and web platforms across multiple countries.
Flutter reported Q2 revenue of $3.1 billion, up 16% year-over-year. Adjusted EBITDA jumped 25% with strong performance in both the U.S. and International segments.
The company shows excellent momentum in product innovation and market execution. Its FanDuel brand maintained clear #1 positions in both the U.S. sportsbook and iGaming markets.
Flutter achieved remarkable iGaming revenue growth of 42% in the U.S., driven by product enhancements, including the launch of the FanDuel Rewards Club and exclusive content.
International markets contributed revenue of $2.4 billion, representing 15% growth, driven by recent acquisitions in Italy and Brazil that have established leadership positions in high-growth markets.
FLUT stock went public in 2009 and has since returned more than 2,000% to shareholders. Here’s why Flutter stock could continue to deliver attractive returns through 2027 as it scales product innovations while expanding margins through operational leverage.
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What the Model Says for Flutter Entertainment Stock
We analyzed Flutter’s potential using valuation assumptions based on its product leadership, margin expansion trajectory, and market opportunity in both the U.S. and International segments.
Investors see significant opportunities given Flutter’s clear market leadership in U.S. online betting, its diversified international portfolio, and its systematic approach to operational improvements that drive profitability.
The business model offers multiple growth paths through new state launches, iGaming expansion, international acquisitions, and technology platform consolidation, which reduces costs while enhancing customer experiences.
Based on estimates of 16% annual revenue growth, 15.7% operating margins, and a P/E valuation of 30x, the model projects Flutter stock could rise from $283/share to $380/share.
That represents a 34% total return, or 14% annualized return over 2.2 years.
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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: 16%
Flutter reported Q2 revenue growth of 16% with strong performance across all divisions. U.S. revenue grew 17% including 11% sportsbook growth and an exceptional 42% iGaming growth.
Growth drivers include continued U.S. market share gains, new state launches (Missouri launching in December 2025), international acquisitions contributing 11 percentage points to growth, and product innovations driving customer engagement.
The company’s 2025 guidance anticipates $17.26 billion in revenue, representing 23% year-over-year growth, which demonstrates strong momentum.
We used a 16% forecast reflecting Flutter’s balanced approach to sustainable growth while investing in product development and managing regulatory changes.
2. Operating Margins:15.7%
Flutter is currently undergoing a significant margin expansion phase. U.S. adjusted EBITDA margins reached 17.7% in Q2, up 530 basis points year-over-year through operating leverage.
It targets continued margin growth through reduced marketing efficiency needs in maturing markets, $300 million in cost savings from technology platform consolidation (with the majority of the savings expected to be realized in 2027), and a $65 million annual benefit from renegotiated market access agreements.
Management maintains confidence in long-term margin targets as scale benefits compound across both divisions.
3. Exit P/E Multiple: 30x
Flutter trades at a current P/E ratio of 29x, which is near its 1-year average of 31x but significantly above its longer-term historical averages.
The premium valuation reflects Flutter’s market leadership position, strong growth trajectory, and improving profitability profile as the U.S. business scales rapidly.
Long-term competitive advantages, including proprietary technology platforms, regulatory expertise, and global operational scale, should support premium valuations as the company delivers on margin expansion targets.
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What Happens If Things Go Better or Worse?
Different scenarios for FLUT stock through 2030 show varied outcomes based on execution and market conditions: (these are estimates, not guaranteed returns):
- Low Case: Slower U.S. margin expansion and regulatory headwinds → 4% annual returns
- Mid Case: Successful margin delivery and international growth → 10% annual returns
- High Case: Market share gains and cost leverage exceed expectations → 16% annual returns
Even in the conservative case, Flutter stock offers reasonable returns supported by market leadership and diversified revenue streams across multiple geographies.
The upside scenario could deliver strong performance if the company successfully navigates regulatory changes while maximizing operational efficiencies and reaping the benefits of international acquisitions.
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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!
