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    Assessing PENN Entertainment (PENN) Valuation After A Steep Slide In Shareholder Returns

    Simply Wall St·02/15/2026 12:34:37
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    Why PENN Entertainment is on investors’ radar

    PENN Entertainment (PENN) has drawn fresh attention after a tough run for the stock, with negative returns over the past year and over the past 3 months prompting investors to reassess the business and its valuation.

    The company operates casinos, racetracks, online sports betting and iCasino brands. It reported revenue of US$6.8b and a net loss of US$903.5m, which makes its current share price and its value score of 6 important reference points.

    See our latest analysis for PENN Entertainment.

    At a share price of US$11.76, PENN’s recent 7 day share price return of a 12.3% decline and 1 year total shareholder return of a 48.26% loss point to fading momentum as investors reassess future risk and reward.

    If PENN’s volatility has you reassessing your watchlist, this could be a good moment to scan our screener of 23 top founder-led companies for other ideas with different drivers.

    With the shares trading at US$11.76, a value score of 6, a 1 year total return loss of 48.26% and an indicated intrinsic discount of 79.61%, you have to ask: is this a mispriced recovery story, or is the market already factoring in PENN’s future growth?

    Most Popular Narrative: 36.8% Undervalued

    With PENN Entertainment’s fair value narrative at $18.61 versus a last close of $11.76, the current gap focuses attention on what is driving that estimate.

    The clustering of recent target cuts can help clear out prior optimism and set a cleaner starting point for assessing execution, particularly if the company delivers in its interactive and core casino operations.

    Valuation multiples embedded in the new targets are more conservative, which some investors may view as offering a larger margin of safety if the company performs in line with these tempered assumptions.

    Read the complete narrative.

    Curious what underpins that $18.61 fair value, even after tempered earnings and margin assumptions and a lower future multiple on profits. The full narrative lays out the revenue path, profitability shift and valuation bridge that need to line up for this gap to close.

    Result: Fair Value of $18.61 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, you still need to weigh the execution risk in the loss making interactive unit, as well as the pressure from higher gaming taxes that could squeeze margins.

    Find out about the key risks to this PENN Entertainment narrative.

    Build Your Own PENN Entertainment Narrative

    If you see the numbers differently or want to stress test your own assumptions, you can build a customised PENN view in just a few minutes: Do it your way.

    A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding PENN Entertainment.

    Looking for more investment ideas?

    If PENN has sharpened your thinking, do not stop here. Use the Simply Wall St screener to line up a few fresh contenders for your watchlist.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.