How much is Starbreeze Overkill worth?

[ZOMBIECRUNCH]

If you wanna see how much Starbreeze Overkill is worth right now you can take a look here. Keep in mind that this is a credible source as it is from Bloomberge.

http://www.bloomberg.com/research/stocks/snapshot/snapshot.asp?ticker=STAR:SS

Please note that this is not spam these are just figgures on how much Starbreeze Overkill has profited from Payday 2.

[Mother_Flowers]

My god, i have no idea how to worth this site nor what any of this means

[inspector-81]

Personally, Starbreeze seems highly over valued. It's trading at 80 times earnings. That's... really high for most businesses. That's really high for even the video game industry right now. The market cap values the company at about a third of EA or Activision. Which seems out of whack. I think the investors expect a *lot* of growth out of Stabreeze. I don't know the other products Starbreeze is putting out other than PD2 and the coming Walking Dead and John Wick projects. But those three titles wouldn't justify a $7 billion dollar company to me.

EDIT:
My bad, the market cap is $2.7. That's about 1/8th of EA or Activision. It still seems overvalued, but not as insane as what I thought before.

[ZOMBIECRUNCH]

Originally posted by inspector-81:

Personally, Starbreeze seems highly over valued. It's trading at 80 times earnings. That's... really high for most businesses. That's really high for even the video game industry right now. The market cap values the company at about a third of EA or Activision. Which seems out of whack. I think the investors expect a *lot* of growth out of Stabreeze. I don't know the other products Starbreeze is putting out other than PD2 and the coming Walking Dead and John Wick projects. But those three titles wouldn't justify a $7 billion dollar company to me.

EDIT:
My bad, the market cap is $2.7. That's about 1/8th of EA or Activision. It still seems overvalued, but not as insane as what I thought before.

That's what I am saying! Overkill say's they wanna be free and indipendent yet they pull an Obama on us.

[inspector-81]

Originally posted by ZOMBIECRUNCH:

Originally posted by inspector-81:

Personally, Starbreeze seems highly over valued. It's trading at 80 times earnings. That's... really high for most businesses. That's really high for even the video game industry right now. The market cap values the company at about a third of EA or Activision. Which seems out of whack. I think the investors expect a *lot* of growth out of Stabreeze. I don't know the other products Starbreeze is putting out other than PD2 and the coming Walking Dead and John Wick projects. But those three titles wouldn't justify a $7 billion dollar company to me.

EDIT:
My bad, the market cap is $2.7. That's about 1/8th of EA or Activision. It still seems overvalued, but not as insane as what I thought before.

That's what I am saying! Overkill say's they wanna be free and indipendent yet they pull an Obama on us.

Overkill is a studio of 50 or so people last I checked. That's fairly small for a video game studio. Starbreeze owns OK, and other stuff. It has other employees. I do not know how much they own or where they are generating revenue or how big they are. Only that people investing in the company seem to think it will grow very rapidly.

I don't know what "pull an Obama on us" means in this context.

[ZOMBIECRUNCH]

It means there a bit of a hypocrite. I am not all aginst them having stock for this company as long as they make good decesions.

[Vectorman]

"...the company reported total revenue amounted to SEK 92.5 million against SEK 51.6 million a year ago."

Yep, multi-million dollar companies sound pretty damn indie to me.
Maybe now they can hire some people to actually work on the game and fix the broken parts.
Oh wait... that would disrupt the operation of the DLC train.

[Peanits]

Originally posted by Vectorman:

"...the company reported total revenue amounted to SEK 92.5 million against SEK 51.6 million a year ago."

Yep, multi-million dollar companies sound pretty damn indie to me.
Maybe now they can hire some people to actually work on the game and fix the broken parts.
Oh wait... that would disrupt the operation of the DLC train. :wolf:

To be fair, they could make a billion dollars and still be an indie company. Just as long as they don't have a publisher/outside funding. Unfortunately for them, they've had a publisher since before the game was even released. So I'm not really sure why they're calling themselves an indie company.

Anyway, on topic. It's worth a lot because they are growing very quickly and because they have the ability to almost literally print money. At this point, the could release just about anything as a DLC and sell loads of copies, and then repeat the process once or twice (sometimes even more) per month. A lot of the value comes from potential, the same way Twitter was valued so highly even though they didn't make any profit for the longest time (as far as I'm aware, they still aren't profitable.) Hell, the lost hundreds of millions of dollars every year, but it's worth a lot because it has the potential to be pumped full of adds or to sell an additional subscription type service. And, to a lesser extent, because it's Twitter, and everyone knows what it is and it already has a bunch of people on it.

[inspector-81]

Originally posted by Vectorman:

"...the company reported total revenue amounted to SEK 92.5 million against SEK 51.6 million a year ago."

Yep, multi-million dollar companies sound pretty damn indie to me.
Maybe now they can hire some people to actually work on the game and fix the broken parts.
Oh wait... that would disrupt the operation of the DLC train. :wolf:

Eh, first, that's revenue, not profit. Second, that's Swedish Krona which are worth about 12 cents.

Relevant data would be profit after tax. Between June 2014 and June 2015 Starbreeze's profit was SEK 34.1 Million, which would be something like $4.2 million. Another thing to look at is to compare that to the year before that, which was, SEK 118.5 million, which would be like $14.8 million. Which is to say Starbreeze made $10 million more in the year PD2 came out than the year after when they were just selling DLC.

But again, this is the profit Starbreeze made, not the profit OK made. I expect most of it is from OK, but I don't know what other sources of profit Starbreeze may or may not have.

I am guessing the very large valuation of the company is because the investors expect a very large jump in profits when TWD game comes out, something comparable to PD2 or bigger. That would put the P/E somewhere in the range of 20 to 30 times earnings, which is much more reasonable.