Module II: Value and the market

10. Expected value (EV)

The "price" of a bet: recognising positive and negative EV, with worked examples.

EV calculator

From your own probability estimate and the odds, it computes the bet’s expected value.

Break-even probability51.3%

Gap versus break-even+3.7 percentage points

Expected value (EV)+7.3%

Expected result on this stake+73 HUF

RatingPositive EV by your estimate

The EV is only as reliable as your probability estimate. Calibration is covered in Chapter 32.

Chapter outline

  1. 10.1The EV formula, recognising +EV / −EV
  2. 10.2The concept of the long run
  3. 10.3Worked examples