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Flow Traders (ENXTAM:FLOW) Valuation After Dinari Tokenized Equities Market-Making Deal

Simply Wall St · 2d ago

Flow Traders (ENXTAM:FLOW) just deepened its push into digital assets by agreeing to act as strategic market maker for Dinari’s tokenized U.S. equities platform, enabling 24/7 trading with instant settlement and continuous liquidity.

See our latest analysis for Flow Traders.

Despite the recent Dinari deal underscoring Flow Traders’ digital asset ambitions, the share price has been more measured, with a year to date share price return of 7.35 percent and a 1 year total shareholder return of 10.05 percent suggesting steady, rather than explosive, momentum.

If this kind of structural shift in market plumbing interests you, it might be worth scanning fast growing stocks with high insider ownership for other under the radar names quietly building long term advantage.

Yet with revenue dipping, earnings still growing and the shares trading at a sizeable discount to analyst targets, is Flow Traders quietly undervalued, or is the market already discounting a richer future for this digital liquidity player?

Most Popular Narrative: 17.1% Undervalued

With Flow Traders last closing at €23.66 against a narrative fair value of €28.55, the storyline leans toward meaningful upside if its assumptions hold.

In order for you to agree with the analyst's consensus, you would need to believe that by 2028, revenues will be €582.2 million, earnings will be €182.8 million, and it would be trading on a PE ratio of 7.5x, assuming you use a discount rate of 8.9%.

Read the complete narrative.

Curious how a shrinking top line can still support richer profits and a higher multiple, even after record results? Want to see the full playbook?

Result: Fair Value of €28.55 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, record recent results and megatrend tailwinds in ETPs and digital assets could sustain higher growth and margins than today’s cautious forecasts assume.

Find out about the key risks to this Flow Traders narrative.

Build Your Own Flow Traders Narrative

If you see the story differently or want to stress test the numbers yourself, you can build a personalized view in just minutes: Do it your way.

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Flow Traders.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.