Fragbite Group AB (publ) (FRAG.ST) fair value

ACCE thesis

Fragbite Group is a small Swedish mobile game publisher, with a market cap of about 48M SEK, that makes and operates free-to-play titles for iOS and Android. The reported numbers show a business in sharp contraction: revenue down 88.2%, an operating margin of -58.6%, and a gross margin of 35.9%, so the core problem is cost base and scale rather than unit economics at the gross line. A trailing P/E of 0.8 against a forward P/E of 59.8 is the kind of gap that usually reflects a one-off or non-recurring item in the trailing year rather than a healthy earnings stream, and the 218.4% ROE is likewise a function of a very small equity base, not a sign of quality. There is no index membership and the data gives no clear catalyst, so the case rests on whether revenue can stabilise at a level that justifies the current cost structure. Worth a deeper look only if the team can confirm the trailing earnings distortion, the cash runway, and whether the revenue decline is slowing.