Here are the major gaming stocks listed by some rough estimated current P/S ratios:
- Starbreeze 11x
- THQ Nordic 8.6x
- Paradox 8.5x
- CD Projekt Red 8x
- ActivisionBlizzard(King) 5.9x
- Electronic Arts 5.4x
- Take-Two Interactive 2.9x
- Frontier Developments 3.2x
- Ubisoft 2.2x
I am not saying the ones in the top are expensive. They most certainly have reason for their high valuation. But if you are looking for a deal – look at the bottom.
Ubisoft is not my favorite because of the dismal news around the Watch_Dogs 2 launch.
But Frontier Developments just launched Planet Coaster which has been the number 1 game on Steam since its launch on the 17th if we exclude for discounted games. And Planet Coaster sales are not even included in the P/S estimate above as they are based on FY 2016 – i.e. only Elite Dangerous & Elite DLC sales.