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As part of our ongoing series here at The Acquirer’s Multiple, each week we spotlight a stock from our Stock Screeners that might be a deeply undervalued gem hiding in plain sight.

The stock this week is:

DoubleDown Interactive Co Ltd (DDI)

DoubleDown is a leading digital gaming company known for its social casino titles, including the flagship DoubleDown Casino. Based in South Korea and listed on the Nasdaq, the company generates robust free cash flow from a global base of loyal users, capitalizing on a high-margin, low-capex model. With limited capital needs, strong recurring revenue, and a lean balance sheet, DoubleDown stands out as a rare cash machine in the gaming sector.

What is IV/P (Intrinsic Value to Price)?

IV/P tells you whether a stock offers more intrinsic value than the price you’re paying for it.

The Calculation:

It blends the company’s earnings power, reinvestment efficiency, and shareholder return strategy (like buybacks and dividends) to estimate its intrinsic value — what the company is worth based on fundamentals.

The Interpretation:

• IV/P > 1 → Stock may be undervalued
• IV/P < 1 → Stock may be overvalued

The further above 1, the more potential value you’re getting for each dollar invested.

IV/P for DDI: 26.0

DoubleDown currently boasts an IV/P of 26.0, meaning its implied intrinsic value is estimated to be 26 times greater than its current price.

To put it simply:

For every $1 you invest, you’re potentially getting $26.00 of value.

This represents one of the widest margins of safety in our entire stock screener.

Supporting Metrics

• Free Cash Flow Yield: 35.4%
  DoubleDown converts over one-third of its market cap into free cash flow annually — a staggering level of cash generation rarely seen in public markets.
• Acquirer’s Multiple: 0.14
  This reflects the price paid (EV) for each dollar of operating income. A multiple this low suggests you’re buying future profits at literal pennies on the dollar.
• Return on Equity (TTM): ~15%
  A mid-teens ROE confirms that management is generating strong returns on shareholder capital — not just cheap, but efficient.

Why Might DoubleDown Be Undervalued?

1. Lack of Wall Street Coverage
   As a small-cap, foreign-listed digital gaming company, DDI flies under the radar — despite its exceptional metrics.
2. Misunderstood Business Model
   The “social casino” niche may sound speculative, but DDI’s monetization is stable, recurring, and capital-light.
3. Cash-Rich, Lean Structure
   Unlike many peers, DDI doesn’t burn cash — it hoards it. Investors may be slow to recognize how rare this is in the gaming industry.

Conclusion

With an IV/P of 26, FCF Yield of 35%, ROE near 15%, and one of the lowest Acquirer’s Multiples in the entire market, DoubleDown Interactive (DDI) looks like a hidden gem for deep value investors. While overlooked by many due to its niche category and low profile, its fundamentals tell a story of efficiency, profitability, and extreme undervaluation.

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