harpLink Gaming (NasdaqCM:SBET) has been drawing investor attention lately as recent news coverage put a spotlight on its strategic emphasis in blockchain gaming and Ethereum asset management. The discussion centers around its sizable crypto holdings, strong balance sheet, and evolving business model.

See our latest analysis for SharpLink Gaming.

It has been a volatile year for SharpLink Gaming, with the latest share price at $9.60 and a 30-day share price return of -30.64%, reflecting near-term uncertainty after recent treasury strategy headlines. Still, the stock's 1-year total shareholder return of 50.52% shows strong momentum is building for long-term investors as the company leans further into Ethereum asset management.

If SharpLink’s crypto-focused pivot has you thinking about where else opportunity may lie, this is a great time to discover fast growing stocks with high insider ownership

Given its sharp price swings and impressive crypto-backed fundamentals, the key question for investors is whether SharpLink Gaming remains undervalued at current levels or if the market has already priced in its future growth.

Price-to-Book of 0.6x: Is it justified?

SharpLink Gaming’s current price-to-book ratio stands at 0.6x. The last close of $9.60 suggests it is trading well below its asset value compared to peers.

The price-to-book ratio measures a company's market value relative to its net assets. This ratio is especially significant for gaming and fintech companies, where tangible assets and crypto holdings can form an important part of the balance sheet, offering a baseline valuation regardless of short-term profit volatility.

SharpLink’s price-to-book of 0.6x is notably low compared to both the US Hospitality industry average of 2.5x and the peer average of 5.3x. This may indicate the market is discounting its blockchain and Ethereum growth strategy. If broader sentiment changes, there is potential for a rerating closer to industry norms, especially as projected high revenue and earnings growth are achieved.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book of 0.6x (UNDERVALUED)

However, sharp revenue growth comes with execution risk and negative net income figures. This could limit upside if operational challenges persist.

Find out about the key risks to this SharpLink Gaming narrative.

Another View: Is the Discount to Fair Value Real?

Another way to look at SharpLink Gaming’s valuation is our DCF model, which estimates the stock is trading at a 31% discount to its calculated fair value ($9.60 versus $13.93). While multiples show the company as undervalued compared to peers, the DCF model also suggests upside potential. However, the key question is whether this supports optimism in the long term or just highlights how sensitive these models can be to growth projections.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out SharpLink Gaming for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 930 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own SharpLink Gaming Narrative

Keep in mind, you're welcome to dig into the numbers and shape your own perspective. Our tools let you create a personalized analysis in just minutes. Do it your way

A great starting point for your SharpLink Gaming research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

Sharpen your investment strategy and never let standout opportunities slip by. Put your curiosity to work and gain an edge by using the Simply Wall Street Screener for fresh, data-driven stock ideas tailored to what matters right now.

• Uncover potential high-yield opportunities with these 14 dividend stocks with yields > 3%, which offers reliable income streams as global rates fluctuate.

• Capitalize on technological breakthroughs with these 25 AI penny stocks, which leads artificial intelligence innovation and transforms entire industries.

• Spot market mispricing and take advantage of these 930 undervalued stocks based on cash flows for stocks trading below estimated intrinsic value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.