Embracer Group AB
STO:EMBRAC B
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P/FCFE
Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.
Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.
Valuation Scenarios
If P/FCFE returns to its Industry Average (17.4), the stock would be worth kr-390.52 (719% downside from current price).
| Scenario | P/FCFE Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | -2.8 | kr63.1 |
0%
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| Industry Average | 17.4 | kr-390.52 |
-719%
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| Country Average | 21.3 | kr-478.71 |
-859%
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Forward P/FCFE
Today’s price vs future free cash flow to equity
Peer Comparison
| Market Cap | P/FCFE | P/E | ||||
|---|---|---|---|---|---|---|
| SE |
|
Embracer Group AB
STO:EMBRAC B
|
14.4B SEK | -2.8 | 1.7 | |
| CN |
|
NetEase Inc
NASDAQ:NTES
|
75.7B USD | 12.3 | 15.5 | |
| US |
A
|
Activision Blizzard Inc
LSE:0H8X
|
74.1B USD | 30.3 | 34.2 | |
| JP |
|
Nintendo Co Ltd
TSE:7974
|
8.8T JPY | 66.4 | 22.1 | |
| US |
|
Electronic Arts Inc
NASDAQ:EA
|
50.6B USD | 22.3 | 74.3 | |
| SG |
|
Sea Ltd
NYSE:SE
|
46.4B USD | 9.9 | 29.9 | |
| US |
|
Take-Two Interactive Software Inc
NASDAQ:TTWO
|
39.6B USD | -355.5 | -10.1 | |
| US |
|
Roblox Corp
NYSE:RBLX
|
39.1B USD | 24.9 | -30.7 | |
| CN |
Z
|
Zhejiang Century Huatong Group Co Ltd
SZSE:002602
|
118.9B CNY | 21.6 | 31.6 | |
| JP |
|
Konami Holdings Corp
TSE:9766
|
2.6T JPY | 106 | 29.9 | |
| JP |
N
|
Nexon Co Ltd
TSE:3659
|
2.1T JPY | 13.2 | 22.3 |
Market Distribution
| Min | 0.6 |
| 30th Percentile | 12.2 |
| Median | 21.3 |
| 70th Percentile | 31.9 |
| Max | 19 008.8 |
Other Multiples
Embracer Group AB
Glance View
Founded in Sweden, Embracer Group AB has carved out a niche in the global video gaming industry, evolving into a powerhouse through strategic acquisitions and diverse gaming ventures. The company, originally known as THQ Nordic, began its journey in the 1990s and has since expanded its portfolio to include a wide variety of game development studios, publishing arms, and intellectual properties. These expansions have been driven by the emphasis on acquiring both underutilized and successful IPs, giving the company a robust library that appeals to various gaming demographics. From action-adventure games to niche RPGs, Embracer Group leverages this portfolio to engage a broad audience, effectively monetizing through game sales, downloadable content (DLC), and sometimes merchandizing. The business model thrives on a decentralized operating structure, where acquired studios maintain a high degree of independence, fostering creativity and innovation within each entity. Embracer Group capitalizes on synergies between these studios by sharing technology, marketing strategies, and operational expertise, which collectively enhance overall efficiency and productivity. This autonomy empowers studios to align closely with player preferences and rapidly adapt to industry trends, which, in turn, reinforces Embracer's revenue streams across digital and physical game sales. While its focus remains primarily on PC and console platforms, the company is always exploring new avenues such as mobile gaming and subscription-based models, ensuring steady growth and resilience in an ever-evolving entertainment landscape.