A Look At Super Group (SGHC) Valuation After Recent Choppy Share Price Performance

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Super Group (SGHC) (NYSE:SGHC) continues to attract attention among online betting and gaming names, with recent returns and fundamentals giving investors fresh data points to weigh against its current US$10.70 share price.

See our latest analysis for Super Group (SGHC).

Recent trading has been choppy for Super Group (SGHC), with a 1-day share price return of a 3.08% decline, a 7-day share price return of 8.08%, and a 30-day share price return of 8.08%. The year-to-date share price return of an 8.08% decline contrasts with a 1-year total shareholder return of 48.77% and a 3-year total shareholder return that is almost 3x. This pattern suggests that sentiment has cooled in the short term following a much stronger multi-year run.

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With Super Group (SGHC) trading at US$10.70, a value score of 5 and an implied discount to both analyst targets and intrinsic estimates, you have to ask: is this a genuine mispricing, or is the market already baking in future growth?

Super Group (SGHC)’s most followed narrative pegs fair value at $17.63 per share versus the recent $10.70 close, so the gap to that view is wide.

The analysts have a consensus price target of $15.286 for Super Group (SGHC) based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $17.0, and the most bearish reporting a price target of just $14.0.

Read the complete narrative.

Curious what kind of earnings jump, margin profile, and valuation multiple need to line up to reach that $17.63 fair value? The narrative outlines a detailed path built on multi year earnings growth assumptions and a future earnings multiple that is lower than what the sector applies today. If you want to see exactly how those pieces fit together, the full story is worth a closer look.

Result: Fair Value of $17.63 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, that story can quickly change if regulatory pressures tighten further in key regions or if heavy tech and marketing spending fails to deliver the expected profitability benefits.

Find out about the key risks to this Super Group (SGHC) narrative.

With sentiment split between potential mispricing and real business risks, it makes sense to move quickly, review the full picture, and decide where you stand based on the data, starting with 4 key rewards and 1 important warning sign.

If Super Group (SGHC) has you thinking more broadly about opportunity and risk, do not stop here, your next strong idea could already be on our screener.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SGHC.

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