Aristocrat and Light & Wonder: Betting it ALL on the multiple

Research evidence excerpt

Aristocrat and Light & Wonder: Betting it ALL on the multiple

J P M O R G A N Asia Pacific Equity Research

30 June 2026

Aristocrat and Light & Wonder

Betting it ALL on the multiple

Ahead of Aristocrat’s Investor Day (1 July), we review US data and takeaways Australia

from our last interactive preview (here) while looking at the material dispersion in

Emerging Companies

performance between ALL & LNW. We expect ALL’s Interactive Investor Day to

focus on a diverse, intertwined and complicated relationship between an Don Carducci AC

amalgamation of acquisitions (i.e. Roxor, NeoGames etc.) and capabilities (re: (61-2) 9003-8379

donald.n.carducci@jpmorgan.com

CXS, Anaxi) with operations spanning verticals across iGaming/Slots/Lottery/

George Stewart

OSB. Our previous Investor Day deep dive is linked (here). US GGR & iGaming (61-2) 9003-8199

data overleaf. george.stewart@jpmorgan.com

J.P. Morgan Securities Australia Limited

ALL materially outperforming LNW. ALL now trades at 14.6x EV/EBITDA

(1YBF), a 100% premium to LNW (trades at 7.3x). This sits well above the ten-

year average premium of ~66%. This recent and sharp relative re-rating doesn’t Figure 1: ALL/LNW – 1Y BF EV/EBITDA (x)

appear to be driven by a single catalyst, but by sentiment and quality 20 ALL Premium LNW AU Equity ALL AU Equity 120%100%

differentiation. Sentiment on the US consumer appears more constructive as ALL’s 15 80%

multiple screens attractive. 10 60%

40%

20%

US May iGaming GGR of US$960m was +16.7% y/y and +19.1% on a trailing 0Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 Jun-25 Jun-260%

6-mth basis. The larger states - Pennsylvania (+9% y/y), Michigan (+22% y/y) and Source: Bloomberg Finance L.P. estimates.

New Jersey (+12% y/y) remained resilient.