Opera Limited (OPRA) Fundamental Analysis: Bull vs. Bear Case

OPRA

Opera Limited

Fundamental data last updated:October 1, 2026

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company profile

SECTOR

Communication Services

industry

Internet Content & Information

Exchange

NASDAQ

County of HQ

NO

Next Earnings Date

Pending Announcement

Business Summary

Opera Limited, together with its subsidiaries, provides mobile and PC web browsers. It operates in two segments, Browser and News, and Other. The company offers mobile browser products, such as Opera Mini, Opera for Android and iOS, Opera GX Mobile, and Opera Touch; PC browsers, including Opera for Computers and Opera GX; and Opera News, an AI-powered personalized news discovery and aggregation service. It also provides browser-based cashback rewards under the Dify brand name; owns GameMaker Studio, a 2D gaming development platform; and GXC, a gaming portal. In addition, the company operates online marketing platforms, including Opera Ads, an online advertising platform; and Opera Ads Manager, designs to create, manage, and report on digital advertising campaigns in one place allowing advertisers to reach customers. It operates in Ireland, Singapore, Russia, and internationally. The company was founded in 1995 and is headquartered in Oslo, Norway. Opera Limited is a subsidiary of Kunlun Tech Limited.

VALUATION

P/E

14.46 Market Cap ($M USD)

$1.64B

Forward P/E

7.84 PEG

0.09 PRICE TO SALES

2.54 PRICE TO BOOK

1.68 EV / EBITDA

9.77 5-Year Average P/E

Free Cash Flow Yield

7.86%

DCF Value

$34.25

Graham Number

$17.66

Price to FCF

12.72 EV to FCF

11.69 Earnings Yield

6.91%

FCF Yield

7.86%

DIVIDEND

Yield

4.36%

Annual Payout

$0.80

Payout Ratio

62.43%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.27

Next Year EPS Growth Estimate

$2.34

Next Year Revenue Growth Estimate

$1.22B

Return on Equity (ROE)

11.76%

FREE CASH FLOW

Operating Margin

15.50%

Debt-to-Equity

0.01 Piotroski F-Score

5 Altman Z-Score

8.37 Return on Invested Capital (ROIC)

10.03%

Current Ratio

1.88 Quick Ratio

1.88 Net Debt to EBITDA

-0.86

Interest Coverage

165.41 Gross Profit margin

58.51%

FCF PER SHARE

$1.43

REVENUE PER SHARE

$7.16

Gainseekers Quantitative Analysis

Summary

Opera Limited appears significantly undervalued when juxtaposed with its DCF Value and Graham Number. The stock has traded below its intrinsic value, suggesting a potential mispricing by the market. With a Forward P/E of 8.01 and an impressive Altman Z-score of 8.58, the company exhibits both growth potential and financial stability. The Earnings Yield of 6.77% further underscores its attractiveness, offering a compelling case for value investors seeking robust returns. Overall, Opera’s financial health and valuation metrics paint a picture of a stock that the market may be underestimating.

AI Exposure / Tech Reliance

Positioned within the Internet Content & Information industry, Opera Limited is well-suited to leverage AI and modern technological shifts. Its sector inherently demands constant innovation and adaptation, providing a fertile ground for AI integration. This adaptability is crucial for maintaining competitive advantage in a rapidly evolving digital landscape.

The Bull Case

For the discerning GARP investor, Opera Limited offers a tantalizing opportunity. The company's ROIC of 10.03% and a solid FCF Yield of 7.70% highlight its efficient capital allocation and cash generation capabilities. With a Piotroski F-Score of 5 and an Operating Margin of 15.50%, Opera demonstrates both financial prudence and pricing power. These metrics collectively suggest a company that not only sustains profitability but also possesses the agility to capitalize on growth opportunities.

The Bear Case

Despite its strengths, Opera Limited is not without its vulnerabilities. The Price/Book ratio of 1.71 and Price/Sales ratio of 2.59 indicate a valuation that may not fully reflect its intrinsic risks. Additionally, the stock's proximity to its 52-week high, with only a 12.38% distance, suggests potential overextension. Investors should be cautious of these valuation multiples, which could signal a market that has already priced in much of the anticipated growth.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$21.50

Institutional Ownership %

1-Year Beta

1.23 Insider Buying % (6 Mo)

Distance to 52-Week High

14.83%

Distance to 52-Week Low

36.15%

EARNINGS SURPRISE %

4.85%

50-DAY SMA

$16.55

200-DAY SMA

$15.51

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.