Risk aversion has the potential to injure Entain’s share price twice over. A shift from growth stocks to value has naturally caused the betting group’s market rating to deflate. Punters who are less willing to speculate on sports matches and online gaming have forced management to cut revenue guidance for this year.
Entain’s share price has descended the mountain it climbed last year. From a peak in September of £23.77, equivalent to 43 times forward earnings, the share price has more than halved to £10.86, and a forward earnings multiple of 17.
Online gaming outside the US has eased, post-lockdown, off 7 per cent during the second quarter. Annual comparators will get easier this year, which will give a fillip to quarterly growth rates,
