Codere Online Luxembourg, S.A.

AI-generated fair value estimate for this company.

Method: 10-year two-stage DCF on unlevered FCF: FY2026 normalized base FCF of EUR15.5M (from Adj. EBITDA guidance midpoint of EUR22.5M on EUR255-265M NGR guidance, less approx EUR3.5M maintenance capex and approx EUR3.5M cash taxes at a 20% effective rate on EBIT); FCF grown 18% per year in years 1-5 and 8% per year in years 6-10; discount rate of 13% reflecting Mexico regulatory/FX and emerging-market risk plus small-cap liquidity risk; terminal growth of 3% applied to year-10 FCF (Gordon growth); net cash of EUR62.6M (zero debt) added to EUR330.4M PV of explicit FCF plus EUR157.8M PV of terminal value for EUR393.0M equity value, converted to USD at 1.1252 EUR/USD for USD442.2M, divided by 45.47M shares outstanding

Reasoning: Codere Online is an asset-light, debt-free online gambling operator with disclosed FY2026 NGR and Adj. EBITDA guidance and a clean net-cash balance sheet, making an unlevered FCF DCF the most direct way to value its mature Spain segment and high-growth Mexico segment together; the above-market 13% discount rate reflects LatAm regulatory and currency risk and small-cap liquidity risk, while the two-stage 18%-then-8% growth path reflects current guided NGR growth of 16-20% fading as the Mexico market matures