Equity research Evolution AB

Abstract

This equity research thesis focuses on the valuation and strategic positioning of Evolution AB, a leading player in the online gaming and live casino industry. This individual report encompasses a thorough analysis of the company’s operational and financial performa nce, market dynamics, and competitive environment. A comprehensive industry overview highlights Evolution's geographic segmentation and growth trends within its core Live Casino and RNG (Random Number Generator) segments. Key external and internal drivers influencing the company’s growth trajectory are examined, including emerging market opportunities in North America and Asia, regulatory developments, and innovation in gaming technologies. The valuation employs a multi-faceted approach integrating Discounted Cash Flow (DCF), Economic Value Added (EVA), Dividend Discount Model (DDM), and relative valuation methodologies. The analysis concludes with a BUY recommendation, supported by a calculated price target and projected 30% upside, reflecting the company’s undervalued stock position, robust financial health, and strategic emphasis on organic growth and market expansion.