Flutter Entertainment confirmed this month it could potentially consider an IPO of a portion of its FanDuel stake in the US.
Flutter, which owns 95% of FanDuel, saw its stock jump 7% on the news. But is it actually a good idea?
Unrecognized value in FanDuel
First, the upside for Flutter: analysts are near unanimous that FanDuel is undervalued compared to DraftKings.
Consider that DraftKings is trading at 27x FY21 sales for a $28.5 billion valuation. Meanwhile, FanDuel Group is projected for circa 30% more revenue than DK in FY2021.
