Through a combination of organic and inorganic investment, DOTD is making significant inroads into repositioning the business, expanding its addressable market and securing future growth. Indeed, progress is already very evident, having driven product and partner-led growth and materially diversified beyond the UK. However, as process is ongoing, margins/earnings accretion is less obvious (as per H1 PBT: -11% y/y) though forecasts show an improving trend, especially in FY27 (EPS +11% y/y). We believe current valuation (10x FY27 P/E and a 7.4% FCF yield) offers a significant opportunity for investors, that can see this opportunity.
