Is the Playtech share price cheap?

Playtech (LON:PTEC) is a mid cap supplier of softward platforms to online betting firms. in the Software industry. Its gaming applications include online casino, poker and other pay to play games, bingo, mobile, live gaming, land-based terminal and fixed-odds games.

Even though Playtech net income fell 50% to EUR123.8m for the year to 31 December 2018, the group's share price displays favourable value traits. Let's explore this in more detail.

Breaking down Playtech's Value Rank

We can see by using Playtech’s StockReport that the group has a:

• Rolling price to book value of 1.16,
• Trailing twelve month price to earnings ratio of 11.3
• Trailing twelve month price to free cashflow of 5.77
• Rolling dividend yield of 4.97%
• Trailing twelve-month price to sales ratio of 1.25

This combination of financial traits gives Playtech a Value Rank of 79 and suggests that Playtech stock might be good value at current levels, although further research is required if this is to be confirmed.

What does this mean for potential investors?

Some of the best quality stocks in the market have defensible models that can deliver high levels of shareholder returns over the long term. But there are no guarantees and it's important to do your own research. Indeed, we've identified some areas of concern with Playtech that you can find out about here.