Caesars Entertainment (CZR) is back in focus after recent trading left the share price around $23.56, prompting investors to reassess how the casino and hospitality group’s fundamentals compare with its recent returns.
See our latest analysis for Caesars Entertainment.
Recent trading has been choppy, with a 1 day share price return of 0.73% and a 90 day share price return of a 4.42% decline, while the 1 year total shareholder return of a 29.44% decline and 5 year total shareholder return of a 69.90% decline suggest momentum has faded despite ongoing casino and online wagering activity.
If Caesars’ recent moves have you reassessing your watchlist, it could be a good moment to broaden your search with fast growing stocks with high insider ownership.
With Caesars posting a recent loss of $241 million on revenue of $11.37b and trading around $23.56, the key question is whether this discount reflects genuine undervaluation or if the market already prices in any future growth.
With Caesars Entertainment’s fair value pegged at $33.37 against a last close of $23.56, the narrative points to a sizable gap in expectations.
The rapid growth and sustained profitability in Caesars’ Digital segment, especially online casino and sports betting, reflects robust consumer adoption of digital and mobile gaming. This expands the customer base and provides higher margin recurring revenue streams; anticipated continued digital expansion is described as a potential driver of both top-line revenue and boosted EBITDA margins.
Curious how recurring digital cash flows, margin uplift across the network, and a richer earnings mix combine to support that fair value? The full narrative lays out the revenue path, margin reset, and valuation multiple that need to line up for Caesars to close that gap.
Result: Fair Value of $33.37 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, you also need to weigh risks like ongoing debt obligations and higher digital marketing costs, which could pressure margins and challenge the upbeat digital growth story.
Find out about the key risks to this Caesars Entertainment narrative.
If you look at this and think the story should read differently, or simply prefer to test the numbers yourself, you can build a personalised view in just a few minutes with Do it your way.
A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Caesars Entertainment.