Paradox Interactive ABFRA:ETA +0.09%80 Gross Margin % is 38.66% as of Mar. 2026, which is 31% below its 10-year median of 55.69. GuruFocus rates FRA:ETA with a GF Score™ of 80/100 and a GF Value™ of €16.07 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 497 Interactive Media companies, Paradox Interactive AB ranks worse than 89.34% on this metric.
FRA:ETA's Gross Margin % is ranked worse than 89.34% of 497
companies
in the Interactive Media industry
Industry Median: 62.58
vs FRA:ETA: 21.25
Paradox Interactive AB had a gross margin of 38.66% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Paradox Interactive AB was -10.70% per year.
Paradox Interactive AB (FRA:ETA) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Paradox Interactive AB had a gross margin of 38.66% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Paradox Interactive AB Gross Margin % Related Terms
Paradox Interactive AB Gross Margin % Historical Data
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The historical data trend for Paradox Interactive AB's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:ETA vs NTES, EA, TTWO: Gross Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Paradox Interactive AB's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Paradox Interactive AB Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Paradox Interactive AB's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Paradox Interactive AB's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Paradox Interactive AB (FRA:ETA) has a Gross Margin % of 38.66% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Paradox Interactive AB and its competitors. This is 31% below median its historical median of 55.69. Over the past decade, Paradox Interactive AB's Gross Margin % has ranged from 21.25 to 65.62. According to the industry distribution chart, Paradox Interactive AB ranks #444 out of 497 companies in the Interactive Media industry, placing it in the top 89.3%.
Is Paradox Interactive AB's Gross Margin % too high?
Paradox Interactive AB's current Gross Margin % of 38.66% is 31% below median its 10-year median of 55.69. Over the past 10 years, this metric has ranged from a low of 21.25 to a high of 65.62. The Interactive Media industry median Gross Margin % is 62.58. Paradox Interactive AB's value of 38.66% is 38.2% below this industry median. Based on the distribution chart, Paradox Interactive AB ranks #444 out of 497 companies in the Interactive Media industry, which is in the bottom quartile relative to peers. Overall, Paradox Interactive AB has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paradox Interactive AB's Gross Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Paradox Interactive AB ranks #444 out of 497 companies for Gross Margin %. This places Paradox Interactive AB in the lower half of its industry. The industry median Gross Margin % is 62.58. Paradox Interactive AB's value of 38.66% is 38.2% below this benchmark. Historically, Paradox Interactive AB's own Gross Margin % has ranged from 21.25 to 65.62 over the past decade. While the company's 10-year median is 55.69 vs. the industry median of 62.58, Paradox Interactive AB has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paradox Interactive AB's current Gross Margin % of 38.66% is 38.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Paradox Interactive AB and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paradox Interactive AB's current Gross Margin % is 38.66%, which is 31% below median its own 10-year median of 55.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paradox Interactive AB stock overvalued right now?
Based on GuruFocus' analysis, Paradox Interactive AB (FRA:ETA) is currently considered Significantly Undervalued. The stock's GF Value™ is €16.07, compared to a current price of €11.12 — trading 30.8% below its estimated fair value. The current Gross Margin % is 38.66%, which is 31% below median its 10-year median of 55.69 and 38.2% below the Interactive Media industry median of 62.58. Paradox Interactive AB's overall GF Score™ is 80/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Paradox Interactive AB (FRA:ETA), the current Gross Margin % is 38.66% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Paradox Interactive AB (FRA:ETA) Overvalued in 2026?
Based on GuruFocus' analysis, Paradox Interactive AB stock appears to be undervalued.
The current stock price of €11.12 is trading 30.8% below its estimated GF Value™ of €16.07.
GuruFocus considers Paradox Interactive AB to be Significantly Undervalued.
Key valuation signals for FRA:ETA:
Gross Margin %: 38.66% (31% below median its 10-year median of 55.69)
GF Value™: €16.07 vs. price of €11.12 (30.8% below fair value)
Industry Position: 38.2% below the Interactive Media median (#444 of 497)
No single metric tells the full story. See the FRA:ETA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paradox Interactive AB is a Swedish company. It is engaged in the development and publishing of PC-based games. The company's product portfolio includes franchise brands such as Stellaris, Europa Universalis, Hearts of Iron, Crusader Kings, Cities, Skylines, Tyranny and Magicka. Paradox is also involved in the publishing and internal development of games and licensing of White Wolf's brands. The company distributes its games through the digital platform Steam as well as on Apple, Google Play, and Sony stores. It operates its business across the world. The majority of the company's revenue comes from the United States, while it also has its presence in Sweden, Rest of Europe and Rest of the World.
80GF Score
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