| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3.30 | -96 |
| Intrinsic value (DCF) | 36.49 | -57 |
| Graham-Dodd Method | 1.70 | -98 |
| Graham Formula | 3.40 | -96 |
Storytel AB (publ) is a leading digital audiobook and e-book streaming service provider headquartered in Stockholm, Sweden. Operating under the Storytel and Mofibo brands, as well as through Audiobooks.com, the company offers a subscription-based model that grants users access to a vast library of audiobooks and e-books. Additionally, Storytel publishes audiobooks through its in-house publisher, Storyside, further strengthening its content creation capabilities. As part of the Communication Services sector and Publishing industry, Storytel capitalizes on the growing global demand for digital reading and listening experiences. With a market capitalization of approximately SEK 7.79 billion, the company is well-positioned in the competitive digital publishing landscape, leveraging its strong brand presence and innovative content delivery platforms to attract and retain subscribers.
Storytel presents an intriguing investment opportunity in the rapidly expanding digital audiobook and e-book market. The company's subscription-based model generates steady revenue streams, supported by a growing library of content and strong brand recognition. With a market cap of SEK 7.79 billion and a beta of 1.55, Storytel exhibits higher volatility compared to the market, which may appeal to growth-oriented investors. The company reported SEK 3.8 billion in revenue and SEK 196.7 million in net income, with a diluted EPS of SEK 2.54. Positive operating cash flow of SEK 547.4 million and no total debt indicate a healthy financial position. However, investors should consider the competitive nature of the digital publishing industry and the company's reliance on subscriber growth for sustained profitability.
Storytel competes in the digital audiobook and e-book streaming market, where differentiation is driven by content library size, user experience, and pricing. The company's competitive advantage lies in its dual role as both a content distributor and publisher, allowing it to control a significant portion of the value chain. Storytel's proprietary publishing arm, Storyside, provides exclusive content that enhances its subscription offerings. The company's strong presence in Scandinavia under the Mofibo brand and its acquisition of Audiobooks.com expand its reach into key international markets. However, Storytel faces intense competition from global players with deeper pockets and more extensive content libraries. Its ability to secure exclusive publishing deals and maintain competitive pricing will be critical to sustaining growth. The company's focus on localized content in various languages also gives it an edge in non-English speaking markets, where global competitors may have less penetration.