Stock Analysis & Valuation SharpLink Gaming Ltd. (SBET)

• Previous Close: $8.86
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	2523.68	28384
Intrinsic value (DCF)	1.97	-78
Graham-Dodd Method	180.92	1942
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

SharpLink Gaming Ltd. (NASDAQ: SBET) is a technology-driven company specializing in connecting sports fans, leagues, and media publishers with sports betting and iGaming content. Operating in the rapidly growing online gambling sector, SharpLink focuses on affiliate marketing, sports betting client services, and enterprise telecom expense management. The company leverages data-driven strategies to convert potential bettors into paying customers while providing sports betting operators with high-quality traffic. Headquartered in Minneapolis, Minnesota, SharpLink serves both U.S. and international markets, positioning itself as a key player in the digital sports betting ecosystem. With a diversified revenue model that includes free-to-play gaming solutions and telecom expense management, SharpLink capitalizes on the expanding legalization of sports betting across the U.S. and the global iGaming boom. The company’s innovative approach to affiliate marketing and player acquisition makes it a noteworthy contender in the competitive online gambling industry.

Investment Summary

SharpLink Gaming presents a high-risk, high-reward investment opportunity in the fast-growing online sports betting and iGaming sector. Despite reporting negative operating cash flow (-$22.8M in the latest period), the company has a strong diluted EPS ($2.39) and no debt, which could appeal to speculative investors. Its beta of 1.357 indicates higher volatility compared to the broader market, reflecting sensitivity to regulatory changes and competition. The company’s affiliate-driven business model benefits from the expanding legalization of sports betting in the U.S., but its small market cap (~$4.7M) and reliance on partnerships pose liquidity and scalability risks. Investors should weigh its niche positioning against execution risks and cash burn.

Competitive Analysis

SharpLink Gaming operates in a highly competitive digital sports betting and iGaming affiliate space, where differentiation hinges on technology, partnerships, and user acquisition efficiency. Its competitive advantage lies in its dual focus on U.S. and international markets, leveraging data analytics to optimize player conversions for operators. However, the company faces stiff competition from larger affiliate networks and direct operators with deeper resources. While its debt-free balance sheet is a strength, its limited scale compared to incumbents like Catena Media or Better Collective could hinder bargaining power with operators. SharpLink’s telecom expense management segment provides diversification but is tangential to its core iGaming focus. Success depends on sustaining traffic quality and expanding high-margin services amid rising customer acquisition costs in the industry. Regulatory risks, particularly in the U.S., add another layer of complexity to its growth trajectory.

Major Competitors

• Catena Media (CAT-B.ST): Catena Media is a leading global affiliate marketing player in online gambling, with a strong European presence and expanding U.S. footprint. Its scale and diversified operator partnerships give it an edge over SharpLink, but its higher reliance on legacy markets exposes it to regulatory headwinds. Catena’s broader geographic reach contrasts with SharpLink’s smaller, more targeted operations.
• Better Collective (BETCO.ST): Better Collective dominates the sports betting affiliate space with a robust portfolio of media assets and tech-driven user acquisition. Its stronger financials and M&A strategy outpace SharpLink’s organic growth. However, SharpLink’s niche U.S. focus and telecom segment offer differentiation where Better Collective is less active.
• DraftKings (DKNG): DraftKings is a direct operator with a vertically integrated model, reducing reliance on affiliates like SharpLink. Its brand recognition and marketing spend dwarf SharpLink’s capabilities, though SharpLink’s white-label services could complement operators like DraftKings in specific niches.
• Penn Entertainment (PENN): Penn’s ownership of Barstool Sportsbook and ESPN Bet limits its need for third-party affiliates, posing a challenge to SharpLink’s B2B model. However, SharpLink’s agility in servicing smaller operators may carve out a defensible niche.