CD PROJEKT Group market cap and financial infos

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I have been considering investing in CDPR this morning, so I dug some figures.
I already missed the AMD train a few years ago, because at that time I had nothing to invest :)

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Talking extremely gross numbers :
CDPR market capitalization is roughly 10.10^9$ - ten billion dollars. 100$ a share, 100 million shares.

Its 2019 total revenue was 125m$, and the total financial assets were worth 350m$.
The market cap is 80 times bigger than the revenues of 2019.
We are talking about a company that invested heavily, quite exclusively, in one game during 5 years, and did not ship any major other game in the while. So such discrepancy has some ground.

At its 'hot spot' after Witcher3 release, in 2016-2017, CDPR had ~150m$ total annual revenue and 1bn$ capitalization.
so the market cap / revenue ratio was around 6.

Of course the assets counted in financial reports do not encompass the value of art, house-grown tech, skills of the teams, so it appears somewhat normal to me that the stock value is vastly de-correlated from the company's finances.
But for comparison, Ubisoft market cap is also near 10bn$, while its revenues in 2018 were 1.7bn$ and assets 2.8bn$ (according to wikipedia).

So, to hit back the cap/revenue ratio of 6, it would need to sell 20 million CP77 copies at 60$ in a year after release? oO
The Witcher3 sold 10 million copies in the first year.

Curious to know what you think.

I would tend to think CDPR capitalization may have grown a tad too fast, maybe staying a smaller studio for a while, in the eyes of the public and the other big players, would not have hurt them. Though, hard to contain investor euphoria(op as we know)... like 70% of shares is free float and 20% in the hands of CEOs.

EDIT : with correct numbers now!
 
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I'm pretty sure those numbers are like that because CDPR is seen as an investment with potential. Witcher becoming a huge franchise is courtesy of these guys, with Cyberpunk suits expect the same explosion. I'm not as optimistic so you missed this hype train several years ago like with AMD, too. The difference is, AMD might explode in popularity again with Zen 4. Keep an eye on AMD instead.
 
As an investor, will you be able to ask questions on the shareholders meeting, like for example what are their plans about Linux support?-)

I second the point about AMD. They are going to grow even more especially when their competition with Nvidia will intensify. At least they have pretty good potential for it, but in practice anything can happen.
 
As an investor, will you be able to ask questions on the shareholders meeting, like for example what are their plans about Linux support?-)

I second the point about AMD. They are going to grow even more especially when their competition with Nvidia will intensify. At least they have pretty good potential for it, but in practice anything can happen.
With 10k to invest I doubt that having one in a million of the ownership will give me much voice to get it heard!

I agree with AMD, it might soar again on another level this time. My only issue with AMD is a moral one, as I smell that the spying device integrated in this Ryzen brand might be as evil as Intel ME...
 
All my opinions, not investment advice.

Pre covid cdpr was holding steady at $20/share, it has only gone up since. I had hoped to also buy shares but ran out of funds preparing for covid here in the u.s.
I feel like cdpr is a good investment for at least 2 - 3 years and I would be buying it if my current situation allowed.
 
All my opinions, not investment advice.

Pre covid cdpr was holding steady at $20/share, it has only gone up since. I had hoped to also buy shares but ran out of funds preparing for covid here in the u.s.
I feel like cdpr is a good investment for at least 2 - 3 years and I would be buying it if my current situation allowed.
Just as a reference. Now cdpr is $112/share.
Damn I wish I wasnt covid poor and invested at less than $25 lol.
 
I recommend taking a look at the full set of notes accompanying the latest quarterly financial report.

My quick take on it, after a fairly superficial reading, is that the company's revenue sources are becoming more diversified over time, with GOG and spin-off projects (e.g., Gwent) becoming meaningful earners. I suspect that's a big part of the reason that the price / earnings ratio has increased. The balance sheet is strong -- in fact, I'd say that they have too much liquidity for my tastes; although a lot of that might be in preparation for contingencies related to the CP2077 release. Little to no revenue related to CP2077 itself has been included in earnings to date -- it's sitting as the biggest liability on the balance sheet. That liability will substantially disappear when the game is released.
 
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