EDISON INVESTMENT RESEARCH LIMITED (LON:KEFI) Edison Investment Research Limited: Games Workshop Group (GAW): No cracks in the plastic
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Edison Investment Research Limited
London, UK, 23 March 2021
Games Workshop Group (GAW): No cracks in the plastic Games Workshop Group's (GAW's) strategy of increasing product innovation, customer engagement and geographic coverage has produced impressive long-term financial results and cash returns to shareholders. We see scope for continued strong growth as the company continues to develop and further exploit its 'library' of IP in a structural growth market. Our DCF-based valuation of 11,613p per share represents 22% upside from the current share price. Our DCF-based valuation of 11,613p per share represents upside from the current share price of 22%. This would represent an EV/sales multiple for FY21 of 8.7x. With no direct quoted peers, GAW trades at a substantial premium to companies with exposure to toys/special interest hobbies, reflecting its better revenue growth profile and higher margins. Relative to other IP/content companies in wider sectors, GAW trades at a premium on sales-based multiples but at a discount on profit-based valuation measures due to its higher profitability. Click here to view the full report or here to sign up to receive research as it is published.
All reports published by Edison are available to download free of charge from its website About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Russell Pointon +44 (0)20 3077 5700 consumer@edisongroup.com Neil Shah +44 (0)20 3077 5715 consumer@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn https://www.linkedin.com/company/edison-group-/ Twitter www.twitter.com/Edison_Inv_Res YouTube www.youtube.com/edisonitv
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