What Can We Learn From Esports Entertainment Group Inc. (GMBL)’s Valuation Ratios?


Esports Entertainment Group Inc. (NASDAQ:GMBL) finished Wednesday with a subtraction of -$0.01 to close at $0.14, a downside of -4.86 percent. An average of 15,545,880 shares of common stock have been traded in the last five days. There was a fall of -$0.2810 in the past week, and it reached a new high 4 times over the past 12 months. The last 20 days have seen an average of 4,715,165 shares traded, while the 50-day average volume stands at 2,795,964.

GMBL stock has decreased by -71.04% in the last month. The company shares reached their 1-month lowest point of $0.1333 on 09/21/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $0.14 and a high of $8.10 in 52 weeks. It has reached a new high 1 time so far this year and lost -96.04% or -$3.3710 in price. In spite of this, the price is down -98.28% from the 52-week high.

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Valuation Metrics

Esports Entertainment Group Inc. (GMBL) stock’s beta is 0.79. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.19.

Financial Health

The quick ratio of Esports Entertainment Group Inc. for the three months ended March 30 was 0.20, and the current ratio was 0.20, indicating that the company is not able to meet its debt obligations. Esports Entertainment Group Inc.’s EBITDA margin for the year ending March 30 is -111.48%. Its gross profit as reported stood at $8.92 million compared to revenue of $16.78 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Esports Entertainment Group Inc.’s return on assets was -90.50%.

Earnings Surprise

For the three-month period that ended March 30, Esports Entertainment Group Inc. had $0.11 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $63.84 million in the quarter, while revenues of $34.47 million were grew 119.49%. The analyst consensus anticipated Esports Entertainment Group Inc.’s latest quarter earnings to come in at -$0.49 per share, but it turned out to be -$2.11, a -330.60% surprise. For the quarter, EBITDA amounted to -$8.65 million. Shareholders own equity worth $40.92 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Esports Entertainment Group Inc. (GMBL) price momentum. RSI 9-day as of the close on 21 September was 15.02%, suggesting the stock is oversold, with historical volatility in this time frame at 291.48%.

As of today, GMBL’s price is $0.1908 -66.90% or -$0.2810 from its 5-day moving average. GMBL is currently trading -70.27% lower than its 20-day SMA and -76.44% lower than its 100-day SMA. However, the stock’s current price level is -66.45% below the SMA50 and -96.73% below the SMA200.

The stochastic %K and %D were 1.72% and 4.70%, respectively, and the average true range (ATR) was 0.0527. With the 14-day stochastic at 1.64% and the average true range at 0.0545, the RSI (14) stands at 22.34%. The stock has reached -0.1539 on the 9-day MACD Oscillator while the 14-day reading was at -0.2004.

Analyst Ratings

ROTH Capital launched coverage on Esports Entertainment Group Inc. (NASDAQ: GMBL) in its analyst report released on November 02, 2021. The firm assigned the stock a Buy rating. The consensus rating for Esports Entertainment Group Inc. (GMBL) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell GMBL, while 1 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 3 others rate it as a “buy”.

What is GMBL’s price target for the next 12 months?

Analysts predict a range of price targets between $0.45 and $1.50, with a median target of $1.13. Taking a look at these predictions, the average price target given by analysts for Esports Entertainment Group Inc. (GMBL) stock is $1.05.


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