Flutter Entertainment plc

20th July 2020

Share price €127.50

P/E: 76

Dividend yield: Nil

 

Calculation of price to earnings ratio of combined entity i.e. Flutter Entertainment after merger with The Stars Group:-

 

All figures from Yahoo Finance.

 

Flutter's Trailing Twelve Months Net Income                                                                        €190 million

The Stars Group Net Earnings for year ended 31 Dec 2019  = $61 million =                  €69.5 million    

                                                                                                                                                      -------------------

Combined Earnings in past year                                                                                             €259.5 million

                                                                                                                                                       ------------------

 

Current market capitalisation of Flutter (post merger)                                                       €19.71 billion

Divide the above by the combined earning in past year of €0.259 billion       =              76 times

 

Therefore the historic P/E is 76 times.

Not expensive as there are currently no material earnings from the US market - Per Flutter: It will take "a couple of years before earnings are generated in the US where the market is opening up". These future potential earnings could be transformative for Flutter, due to the enormous size of this new market in the US.