eyeQ: a FTSE 100 stock to watch
Experts at eyeQ have used AI and their own smart machine to analyse macro conditions and generate actionable trading signals. Here’s what it says about a stock where easy financial conditions are providing a strong tailwind to the share price.
27th August 2025 09:25
by Huw Roberts from eyeQ
“Our signals are crafted through macro-valuation, trend analysis, and meticulous back-testing. This combination ensures a comprehensive evaluation of an asset's value, market conditions, and historical performance.” eyeQ
- Discover: eyeQ analysis explained | eyeQ: our smart machine in action | Glossary
Entain
Macro Relevance: 70%
Model Value: 957.13p
Fair Value Gap: -8.5% discount to model value
Data correct as at 27 August 2025. Please click glossary for explanation of terms. Long-term strategic model.
Entain (LSE:ENT) is a FTSE 100 international sports betting and gaming company better known by its brands such as Ladbrokes, Coral, bwin, PartyPoker and Sportingbet.
The betting sector has some issues - rumours continue to swirl around possible increases in regulation and taxes.
Against that the company has made notable product progress with analysts citing faster apps, bet builders, bet trackers, a “coins” rewards system, plus an uptick in high-profile marketing campaigns such as “Ladisfaction” with the Premier League re-starting.
So much for the bottom-up view of the stock, what’s the macro perspective?
For a long time, Entain has been driven purely by company fundamentals. But note eyeQ’s macro relevance score has just risen above our 65% threshold for a macro regime. For the first time in 18 months, investors need to know the macro outlook as well.
The good news is that eyeQ model value is trending higher. Easy financial conditions - especially a friendly bond market with tight credit spreads and low volatility - are providing a strong tailwind to the share price.
But ENT is lagging that improvement in macro; it sits 8.5% cheap to our model. That’s not sufficient to trigger a bullish signal, but - in macro terms - these are the cheapest levels since President Donald Trump’s Liberation Day tariffs shook markets in April.
One to watch.
Source: eyeQ. Past performance is not a guide to future performance.
Useful terminology:
Model value
Where our smart machine calculates that any stock market index, single stock or exchange-traded fund (ETF) should be priced (the fair value) given the overall macroeconomic environment.
Model (macro) relevance
How confident we are in the model value. The higher the number the better! Above 65% means the macro environment is critical, so any valuation signals carry strong weight. Below 65%, we deem that something other than macro is driving the price.
Fair Value Gap (FVG)
The difference between our model value (fair value) and where the price currently is. A positive Fair Value Gap means the security is above the model value, which we refer to as “rich”. A negative FVG means that it's cheap. The bigger the FVG, the bigger the dislocation and therefore a better entry level for trades.
Long Term model
This model looks at share prices over the last 12 months, captures the company’s relationship with growth, inflation, currency shifts, central bank policy etc and calculates our key results - model value, model relevance, Fair Value Gap.
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