Betsson AB - $BETS-B.ST

Betsson AB - $BETS-B.ST

Betsson AB is an established player within the online gambling sector, led by a supreme capital allocator in the owner-operator Pontus Lindwall. It trades at a market cap of 22 billion SEK, or approximately 2 billion USD.

At a share price of 155 SEK the company trades at a FCF-yield of 10%, while growing earnings double digits. This is due to a looming regulatory risk, which could severely affect current earnings power.

However, I believe that despite the risk, the current multiple of 10 times P/E is so low, that risk/reward is very promising. I foresee a shareholder CAGR of above 15% even with conservative estimates for future growth and negative regulatory events.

Not financial advice, and an investment in Betsson AB carries severe risk.

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