Modern Times Group MTG (OM:MTG B) just posted its third quarter 2026 results, with earnings grabbing attention as net income and earnings per share moved sharply higher while sales stayed essentially flat.
The latest SEK107.9 share price leaves Modern Times Group MTG with a 1-year total shareholder return that is down 12.84%, even though the 3-year total shareholder return is up 21.30%. This indicates that longer term holders are still ahead despite weaker recent momentum.
Compare Modern Times Group MTG's earnings rebound with a curated set of value opportunities using the 196 high quality undervalued stocks filter designed for stronger balance sheets and cash flows.
Modern Times Group MTG shares have slid over the past year while earnings moved higher, so the trade off is clear. Do you lean into today’s valuation, or wait and hope for an even cheaper entry later?
Most Popular Narrative: 20.1% Undervalued
Against the last close at SEK107.9, the bearish analyst Narrative on Simply Wall St anchors Modern Times Group MTG’s fair value at SEK135, using an 8.0% discount rate and leaning on the most cautious published forecasts.
Although PlaySimple’s rapid growth in new titles and higher ARPDAU in Tier 1 markets currently supports group revenue and EBITDA, the delay of the planned PlaySimple IPO in India from 2026 to 2027 introduces an extra year of execution risk on scaling that business without the expected local equity market support. This could weigh on earnings quality and future capital allocation flexibility.
See why 0 investors see Modern Times Group MTG as 20% undervalued.
Result: Fair Value of SEK135 (UNDERVALUED)
Still, if Modern Times Group MTG keeps organic growth steady while PlaySimple maintains strong ARPDAU and cash conversion, the bearish narrative could quickly appear too harsh.
Find out about the key risks to this Modern Times Group MTG narrative.
Another View: What MTG B’s P/E Is Telling You
Modern Times Group MTG looks cheap against the bearish SEK135 fair value, yet the current P/E of 45.4x is materially higher than the European Entertainment sector on 13.1x and also above its own fair ratio of 44.8x. Is the market overpaying for the growth story, or is this premium justified?
See what the numbers say about this price in our valuation breakdown with See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Mixed messages in the Modern Times Group MTG story make this a good moment to check the data yourself and move quickly if needed. To weigh up both the upside and the concerns in one place, start with 4 key rewards and 1 important warning sign.
Looking for more Modern Times Group MTG investment ideas?
If Modern Times Group MTG has your attention today, broaden your watchlist with a few focused stock ideas that match clear, data backed themes.
- Target higher yield opportunities by scanning for companies that resemble dividend fortresses using the 216 dividend fortresses.
- Hunt for quality at a reasonable price by filtering for potential value opportunities through the 562 high quality undiscovered gems.
- Prioritise resilience first and foremost by starting with a 208 resilient stocks with low risk scores.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com