# Frontier Developments plc (FDEV.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Communication Services / Interactive Media & Services. Price 444p, market value 154 millionp.

## Valuation
- **P/E (trailing): 8.9×** (5-yr avg 3552.1×, 3-yr avg 607.3×). Frontier Developments plc trades at 8.9× trailing earnings, well below its own five-year average of 3552.1×: cheap by its own standards. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 12.4×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.07**. A PEG of 0.07 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.8×**. Each dollar of revenue is priced at 0.8×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.7×**. The shares trade at 1.7× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 1.7×**. Enterprise value is 1.7× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 59.0%** (5-yr avg 0.2%). Free cash flow equals 59.0% of the market value, above its five-year average of 0.2%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 11.3%**. The inverse of the P/E: 11.3% of the price is earned each year.

## Profitability
- **Gross margin: 42.2%**. Frontier Developments plc keeps 42.2% of revenue after the direct cost of what it sells.
- **Operating margin: 16.2%**. 16.2% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 18.1%**. 18.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 17.2%**. 17.2% on shareholders' equity is solid.
- **Return on invested capital: 43.1%**. Return on all capital, debt included, is 43.1%: comfortably above what that capital costs.
- **Return on assets: 27.6%**. Each dollar of assets produces 27.6% of profit.

## Growth
- **Revenue growth (1 yr): 1.5%** (3-yr -7.4%/yr, 5-yr 3.6%/yr). Revenue grew 1.5% over the last year, against 3.6% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 173.2%** (3-yr 19.5%/yr, 5-yr 1.0%/yr). Earnings per share rose 173.2%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 159.1%/yr**. Free cash flow has compounded at 159.1% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.20**. Debt is 0.20 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Frontier Developments plc holds more cash than debt.
- **Interest coverage: 33.1×**. Operating profit covers interest 33.1× over, a safe margin.
- **Current ratio: 3.99** (quick 3.99). Current assets cover the next year's liabilities 3.99 times.
- **Altman Z-score: 4.96**. A Z-score of 4.96 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Frontier Developments plc does not currently pay a dividend, but it returned 6.5% of its market value through buybacks over the last year.

## Price and momentum
- **Total return (1 yr): 23.4%** (YTD 3.0%, 3-mo -0.2%). The shares are up 23.4% over twelve months including dividends.
- **From 52-week high: -24.6%** (47.0% above the low). Trading 25% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 60**. An RSI of 60 is neutral.
- **Beta (1 yr): 1.04** (volatility 47%). Beta of 1.04 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=FDEV.L · Page: https://foliofundamentals.com/stocks/fdev.l

Not investment advice.