Ann: BetMakers submits proposal to acquire Tabcorp assets, page-235

Yes, lets compare.... how else do you think I came to form the view that BET is significantly overvalued?


As a starting point (and I don't feel like sharing my epic spreadsheet in it's completeness where I compare margins, EBITDA, enterprise value and not just MC etc) let's just consider forward revenues, and MC

PBH's MC is circa 10 times is most recent qtr's annualised revenue
JIN is on 11 times
ALL is on 6 times

On Thursday this week, BET was sitting on 21.6 times......

That is TWICE PBH's ratio..


Even after yesterdays sell off, BET is still sitting at 17.5 times its forward 12 months revenue...

And bringing Bluebet into the convo is even worse for you..

This AFR article suggests a MC to revenue ratio of circa 1......

https://www.copyright link/street-talk/bookie-bluebet-taps-ord-minnett-morgans-for-ipo-20210303-p577h2




There is a lot of froth in tech and growth stocks in general.


The risk around piling into BET at this point in time, with "the kitchen sink" as promoted by some here, is that you would be piling into probably the most expensive stock in a very frothy sector, at the potential peak of the NASDAQ market.

The highest current investment thinking is suggesting a rotation out of growth into value...Look at what has happened to the PBH share price this last 8 weeks btw....

Who knows what the future will hold of course..

All I am suggesting is that BET is very expensive on any metric, both in absolute terms, and relative to its peers.

Furthermore, the risk is that high PE/growth stocks will be facing headwinds more broadly moving forward.


I'm sure you have all considered this article by Matt also?

https://www.racenet.com.au/news/digital-wagering-pioneer-warns-of-postcovid-bookie-blues-20201119







Of course, none of this is advice.. just my views, DYOR etc