Valuation Analysis of Public Gaming Companies
Oyun sektörü, son yıllarda hem küresel eğlence endüstrisinde hem de halka açık sermaye piyasalarında en dikkat çekici alanlardan biri olmuştur. Pandemi döneminde yaşanan talep artışı ve mobil oyunların geniş kitlelere ulaşmasıyla birlikte birçok oyun şirketi yüksek değerlemelerle halka açılmıştır. Ancak 2024 ve 2025 yıllarında yaşanan normalleşme, platform riskleri ve kârlılık baskısı, bu değerlemelerin ciddi biçimde ayrışmasına neden olmuştur.
In recent years, the gaming industry has become one of the most notable areas in both the global entertainment sector and public capital markets. The surge in demand during the pandemic and the widespread adoption of mobile gaming led many gaming companies to go public with high valuations. However, normalization in 2024 and 2025, platform risks, and profitability pressures have caused these valuations to diverge significantly.
The valuations of publicly traded gaming companies span a wide spectrum due to the sector’s dynamic nature and differing business models. Differences in EBITDA and Revenue multiples stem not only from financial metrics but also from investors’ perceptions of risks and opportunities.
This analysis compares publicly listed gaming companies across EV/Revenue and EV/EBITDA multiples by sector, geography, and business model, while also examining the key drivers behind these valuation differences.
1. United States
U.S.-based gaming companies are among the leaders of the global gaming market and stand out with high valuation multiples. The source of these higher multiples lies in the U.S. gaming sector’s large user base, strong game IP portfolios, and advanced distribution channels.
As for EV/EBITDA multiples, there is a clear expectation of a significant rise for 2025. On a median basis, multiples increased by 37%, from 12.7x to 17.4x. This trend is directly related to Take-Two Interactive, which is valued at a strikingly high 85.0x for 2025.
Key Drivers of Valuation Differences
- Content/IP Portfolio: Companies like Take-Two and EA own enduring IPs such as FIFA and GTA, which drive higher valuation multiples.
- Growth Potential: Platform-based firms like Roblox and Unity are not just games but ecosystems, leading to higher multiples.
- Profitability Structure: Companies with low EBITDA margins or losses exhibit more volatile valuations—Unitybeing a prime example.
- Corporate Governance and Liquidity: The high liquidity and transparency of U.S.-listed companies generally support higher valuation multiples.
- Expectations and New Releases: Anticipation of major future game launches, particularly for companies like Take-Two, pushes multiples upward.
2. Japan
Japan has historically been one of the most established and powerful centers of the gaming industry. Companies such as Nintendo, Bandai Namco, and Konami possess strong IPs and sustainable revenue structures. However, compared to the U.S., their valuation multiples reflect a more conservative profile.
A similar upward trend is observed in EV/EBITDA multiples. The median rose from 11.5x in 2024 to 15.3x in 2025. Examples include:
- DeNA: Highly volatile, shifting from 38.4x in 2024 to 5.8x in 2025, signaling significant variability in revenue projections.
- Capcom: Consistently maintains high multiples (18.4x in 2024, 24.0x in 2025), reflecting investor confidence in its IP efficiency and growth potential.
- Koei Tecmo: Stands out with an 18.7x EV/EBITDA multiple in 2025.
- Bandai Namco and Konami also maintain relatively stable EBITDA profiles.
Key Drivers of Valuation Differences
- High Operational Margins: Companies like Capcom and Koei Tecmo enjoy high EBITDA margins, which push valuations upward.
- Strength of IPs and Franchises: Japanese firms own globally recognized IPs such as Dragon Ball, Resident Evil,and Monster Hunter.
- Cautious Transition to Mobile: While companies like GungHo and DeNA have moved into the mobile gaming segment, their growth rates are slower compared to U.S. peers.
- Currency Risk and Globalization: Although a significant portion of Japanese firms’ revenues comes from overseas, exposure to currency fluctuations is a key factor in investor assessments.
- Conservative Investor Profile: Investors on Japanese exchanges are generally more conservative in their valuations, which results in lower multiples compared to the U.S.
3. China
Although China is one of the largest players in the global gaming industry, the valuation multiples of its publicly traded gaming companies show significant volatility. In 2025, rising multiples reflected the aggressive growth expectations of large-scale companies, while smaller and mid-sized firms experienced substantial disparities in valuations.
In terms of EV/EBITDA multiples, the Chinese gaming sector has the highest valuation levels among all regions. While median values remain stable in the 23–24x range, the mean has increased dramatically. This indicates overly optimistic financial projections from some companies while also reflecting the sector’s high volatility.
Key Drivers of Valuation Differences
- Overly Optimistic Forecasts: Some companies (especially ZQ Games and Ourpalm) report abnormal EBITDA multiples due to aggressive growth projections.
- Global Distribution Power: Giants like Tencent and NetEase maintain more stable and rational valuations thanks to their global reach.
- Investor Confidence and Information Asymmetry: Limited access to corporate information in Chinese markets leads to speculative pricing in some firms.
- Integration with Digital Ecosystems: In China, integration with digital payments, social networks, and gaming (e.g., WeChat) drives more aggressive growth projections.
- Regulatory Risks: Government interventions, such as playtime restrictions for younger players, can put downward pressure on valuations.
4. Europe
Although the European gaming industry stands out globally for its diversity and long-established game development studios, the valuation multiples of publicly traded companies show significant heterogeneity. This can largely be attributed to the diversity of financial structures, growth dynamics, and regional risk perceptions.
In terms of EV/EBITDA multiples, Europe shows considerable variability. While the median remains steady at 7.7x, the wide spectrum of company performances pushes the average higher. Outlier EBITDA multiples typically reflect either temporary profitability declines or expectations of significant growth and profit surges.
Key Drivers of Valuation Differences
- Portfolio Composition & Lack of Blockbusters: Many European gaming firms lack globally renowned “hit” titles. This limits revenue and EBITDA growth, thereby suppressing valuation multiples.
- Prevalence of Mid-Sized Companies: The abundance of mid-sized firms dilutes investor attention and drives valuation multiples lower on a per-company basis.
- Earnings Volatility & Project-Based Growth: Many European companies rely heavily on a few projects or IPs. Delays or failures in these projects negatively affect valuations.
- Regulatory Risks & ESG Pressures: Rules on in-game purchases and playtime restrictions increase investor risk perception, pulling multiples down.
- Outliers with High Expectations: A handful of firms with aggressive growth or transformation forecasts distort overall statistics, making medians a more reliable benchmark than averages.
5. South Korea
The South Korean gaming industry holds a significant position in the global gaming market thanks to its high technology adoption, mobile-first focus, and broad market access across Asia. The sector attracts investors with both its strong domestic consumer base and its export potential.
Outlier examples:
- Shift Up (2025 EV/Revenue 13.1x): Aggressive growth expectations following its IPO have driven multiples higher.
- Skonec Entertainment (2024: 12.2x): Likely due to high growth expectations or limited public float.
When examining EV/EBITDA multiples, pricing in the South Korean market appears more optimistic, in line with growth expectations. The median stood at 9.3x in 2024 and 8.3x in 2025. These multiples are higher compared to Europe but more conservative than in China.
Key Drivers of Valuation Differences
- Mobile and MMORPG-Driven Growth: Most Korean companies focus heavily on MMORPGs and mobile content. Success or failure in these segments directly impacts valuations.
- High R&D and Marketing Expenses: Aggressive marketing for new game launches temporarily compresses EBITDA margins, artificially inflating EBITDA multiples for some companies.
- Low Public Float and Liquidity Issues: Limited free float and low trading volumes increase valuation volatility.
- Global Publishing Impact & IP Strategy: The lack of globally recognized IPs or models appealing only to local players suppresses valuations for certain firms.
- New IPOs and Inflated Expectations: High multiples seen in companies like Shift Up often reflect investor expectations not yet supported by financial results.
Conclusion
Looking at the valuation analysis of publicly traded gaming companies worldwide, it becomes clear that regional dynamics play a decisive role in shaping investment decisions. Based on 2025 median multiples, China and the United States maintain high valuations due to their strong growth potential and platform-based business models.
On the other hand, Europe and Japan, despite having lower valuation multiples, offer low-risk investment opportunities thanks to operational stability and solid IP portfolios. South Korea, meanwhile, presents scalable opportunities for strategic investors, supported by the vibrancy of its mobile gaming market and recent IPO activity.
Overall, there has been a noticeable improvement in valuation multiples across global gaming companies. This growth is particularly linked to the rising penetration of mobile games and margin expansion from cost optimization. Furthermore, following the regulatory pressures and fluctuations in consumer demand seen in 2024, 2025 is expected to bring a more stable investment environment, driving valuations higher.
For over a decade, we have worked with dedication to contribute to and create value within Turkey’s technology startup ecosystem. Throughout this journey, we have leveraged our deep expertise and strong business network to support entrepreneurs. At Boğaziçi Ventures, we believe in harnessing the power of technology across multiple verticals to deliver sustainable and intelligent solutions.
We invite entrepreneurs to apply for investment meetings with Boğaziçi Ventures via [email protected] . Take the opportunity to scale your technology startup and join our global business network today!
