Assessing Caesars Entertainment (CZR) Valuation After Recent Share Price Moves And Digital Growth Expectations

Why Caesars Entertainment Stock Is On Investors’ Radar

Caesars Entertainment (CZR) is drawing attention after recent share price moves, with the stock around $23.56 and showing mixed returns over the past week, month, and past 3 months.

See our latest analysis for Caesars Entertainment.

Recent share price moves around $23.56 come after a mixed stretch, with a 1 day share price return of 0.73% but a 1 year total shareholder return decline of 29.44%, suggesting momentum has been fading rather than building.

If Caesars has you reassessing your options, this could be a good moment to broaden your watchlist with fast growing stocks with high insider ownership.

With Caesars shares around $23.56, a value score of 5, an estimated 61% intrinsic discount and a 35.8% gap to one analyst price target, you have to ask: is there real upside here, or is the market already pricing in future growth?

Most Popular Narrative: 29.4% Undervalued

The most followed narrative sees Caesars’ fair value at US$33.37 per share versus the last close at US$23.56, framing a sizeable valuation gap for investors to assess.

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, which expands the customer base and provides higher margin recurring revenue streams; anticipated continued digital expansion is poised to drive both top-line revenue and boosted EBITDA margins.

Read the complete narrative.

Curious what kind of revenue mix, margin lift and earnings path are baked into that price gap? The narrative leans on specific growth rates, rising profitability and a re-rated earnings multiple. The full story joins these moving parts into one valuation roadmap.

The narrative applies a 12.5% discount rate to its cash flow assumptions and lands on a fair value estimate of US$33.37 per share, implying Caesars is trading at a sizeable discount to that view. That outcome rests on forecasts for steady revenue growth, a shift from losses to profits and a future P/E multiple that sits below the current average for the US Hospitality industry, which together support the idea that the current share price does not fully reflect those projections.

Result: Fair Value of $33.37 (UNDERVALUED)

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

However, that upside story runs into real questions around Caesars’ debt load and ongoing promotional and remodeling spending, which could squeeze margins and keep earnings unpredictable.

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

Build Your Own Caesars Entertainment Narrative

If you interpret the numbers differently or prefer to evaluate the data yourself, you can build a tailored Caesars view in a few minutes by starting with Do it your way.

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

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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.

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