CDR PW

CD Projekt S.A.

TMT


Presented:02/23/2021
Price:PLN257.70
Cap:$6.92B
Current Price:PLN165.00
Cap:$4.40B

Presented

Date02/23/2021
PricePLN257.70
Market Cap$6.92B
Ent Value$11.22B
P/E Ratio88.78x
Book ValuePLN11.25
Div Yield0%
Shares O/S100.66M
Ave Daily Vol1,333,123
Short IntN/A

Current

PricePLN165.00
Market Cap$4.40B
CD Projekt SA is a holding company, which engages in the development of video games. It operates through the CD PROJEKT RED and GOG.com segments. The CD PROJEKT RED segment focuses on videogame development. The GOG.com segment distributes global digital videogame. Its other activities include motion picture distribution and investment services. The company was founded by Marcin Piotr Iwinski and Adam Michal Kicinski in 1994 and is headquartered in Warsaw, Poland.

Publicly traded companies mentioned herein: CD Projekt SA (CDR PW), Take-Two Interactive Software Inc (TTWO)

Highlights

The presenter recently closed out his short position in the Polish video game publisher CD Projekt SA (CDR PW) but still considers it overvalued at ~PLN258 per share and would use any significant price appreciation as an opportunity to re-establish a position. CDR developed The Witcher franchise, releasing 7 games in the series from 2007 – 2018. Other than The Witcher, CDR has published just one game, Cyberpunk 2077, which was released in 2020 to disappointing results. While there is some immediate upside risk from CDR potentially improving the game, the presenter believes that the five-year cumulative consensus earnings outlook is still too optimistic. 

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Idea Discussion

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