My wild guess is that because most of their revenue isn't recurring it's valued lower.
Given the size of the PC gaming market and the ubiquity of Steam you would think they have >>$1B in revenue though, which makes $7.7B a pretty conservative multiple.
I'd aim a little closer to that 1b than 5. Most of the "whale" cash cow games have their own launchers and don't split the revenues. Wow, cod, most MMOs, lol, fortnite, etc all huge franchises with zero steam. Since steam takes 30% or less depending on on agreements, they make good money, but not insane.
Given the size of the PC gaming market and the ubiquity of Steam you would think they have >>$1B in revenue though, which makes $7.7B a pretty conservative multiple.
This source says PC gaming is ~$30B, so $1-5B in revenue seems reasonable for Steam: https://www.globenewswire.com/en/news-release/2022/05/23/244...