Paradox Interactive ABOSTO:PDX +0.40%80 Operating Margin % is 23.37% as of Mar. 2026, which is 33% below its 10-year median of 35.11. GuruFocus rates OSTO:PDX with a GF Score™ of 80/100 and a GF Value™ of kr176.23 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 553 Interactive Media companies, Paradox Interactive AB ranks better than 54.43% on this metric.
Paradox Interactive AB (OSTO:PDX) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Paradox Interactive AB Operating Margin % Related Terms
Paradox Interactive AB Operating Margin % Historical Data
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The historical data trend for Paradox Interactive AB's Operating 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.
OSTO:PDX vs NTES, EA, TTWO: Operating Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Paradox Interactive AB's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Paradox Interactive AB's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Paradox Interactive AB's Operating Margin % falls into.
Paradox Interactive AB Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Paradox Interactive AB's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Paradox Interactive AB (OSTO:PDX) has a Operating Margin % of 23.37% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Paradox Interactive AB and its competitors. This is 33% below median its historical median of 35.11. Over the past decade, Paradox Interactive AB's Operating Margin % has ranged from 4.64 to 47.11. According to the industry distribution chart, Paradox Interactive AB ranks #252 out of 553 companies in the Interactive Media industry, placing it in the top 45.6%.
Is Paradox Interactive AB's Operating Margin % too high?
Paradox Interactive AB's current Operating Margin % of 23.37% is 33% below median its 10-year median of 35.11. Over the past 10 years, this metric has ranged from a low of 4.64 to a high of 47.11. The Interactive Media industry median Operating Margin % is 2.99. Paradox Interactive AB's value of 23.37% is 681.6% above this industry median. Based on the distribution chart, Paradox Interactive AB ranks #252 out of 553 companies in the Interactive Media industry, which is above the industry midpoint. Overall, Paradox Interactive AB has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paradox Interactive AB's Operating Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Paradox Interactive AB ranks #252 out of 553 companies for Operating Margin %. This puts Paradox Interactive AB in the upper half of its industry. The industry median Operating Margin % is 2.99. Paradox Interactive AB's value of 23.37% is 681.6% above this benchmark. Historically, Paradox Interactive AB's own Operating Margin % has ranged from 4.64 to 47.11 over the past decade. While the company's 10-year median is 35.11 vs. the industry median of 2.99, Paradox Interactive AB has consistently been above 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 Operating Margin % for an Interactive Media company?
The median Operating Margin % among Interactive Media companies is 2.99, based on 553 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paradox Interactive AB's current Operating Margin % of 23.37% is 681.6% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Paradox Interactive AB and its competitors. For the Interactive Media industry, the median Operating Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paradox Interactive AB's current Operating Margin % is 23.37%, which is 33% below median its own 10-year median of 35.11. 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 (OSTO:PDX) is currently considered Modestly Undervalued. The stock's GF Value™ is kr176.23, compared to a current price of kr124.40 — trading 29.4% below its estimated fair value. The current Operating Margin % is 23.37%, which is 33% below median its 10-year median of 35.11 and 681.6% above the Interactive Media industry median of 2.99. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Paradox Interactive AB (OSTO:PDX), the current Operating Margin % is 23.37% 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 (OSTO:PDX) Overvalued in 2026?
Based on GuruFocus' analysis, Paradox Interactive AB stock appears to be undervalued.
The current stock price of kr124.40 is trading 29.4% below its estimated GF Value™ of kr176.23.
GuruFocus considers Paradox Interactive AB to be Modestly Undervalued.
Key valuation signals for OSTO:PDX:
Operating Margin %: 23.37% (33% below median its 10-year median of 35.11)
GF Value™: kr176.23 vs. price of kr124.40 (29.4% below fair value)
Industry Position: 681.6% above the Interactive Media median (#252 of 553)
No single metric tells the full story. See the OSTO:PDX 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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