A stock like this should always trade on conservative P/e's. The reason for this is that IAS's profit is based on them having a win ratio consistently higher than competitors. If you look into their profits from the last two years the ratio is several % points better than competitors.
What this means is that either competitors will improve and increase procing pressure or IAS will slip back to the average.
Betting exchanges are a positive for IAS, not for laying off bets as liquidity is insufficient for this but to widen distribution. The exchanges need IAS and the like to generate sufficient liquidity for normal punters so a win win situation.
I like IAS but be wary, its profits can disappear very quickly.
regards
Peter
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