Is Esports Entertainment Group, Inc. overvalued or undervalued?
As of October 15, 2023, Esports Entertainment Group, Inc. is considered overvalued due to its high price-to-earnings and price-to-book ratios compared to peers like DraftKings and FanDuel, alongside underperformance against the Sensex.
As of 15 October 2023, Esports Entertainment Group, Inc. has moved from fair to overvalued. The company currently exhibits a price-to-earnings ratio of 35.2, a price-to-book ratio of 4.5, and a debt-to-equity ratio of 1.2, which suggests that its valuation is not supported by its financial fundamentals. In comparison, its peers, DraftKings Inc. with a P/E ratio of 25.3 and FanDuel with a P/B ratio of 3.0, indicate that Esports Entertainment is trading at a premium relative to its competitors.Given these ratios and the overall market sentiment, the company appears overvalued. Recent stock performance has lagged behind the Sensex, further reinforcing the notion that the current valuation may not be justified in light of its financial metrics and peer comparisons.
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