Is PENN Entertainment (PENN) Cheap On Its Alberta Launch And Rebound?
PENN Entertainment (PENN) has launched theScore Bet Sportsbook & Casino in Alberta, alongside standalone theScore Casino and Hollywood Casino apps, extending its Canadian online gaming presence across mobile and web platforms.
See our latest analysis for PENN Entertainment.
PENN Entertainment’s latest launch in Alberta comes after a strong 90-day share price return of 31.2% and a year to date share price return of 37.91%, even though the 5 year total shareholder return is down 69.13%.
If PENN Entertainment’s online expansion has your attention, it can be useful to see what else is moving in digital infrastructure and platforms by reviewing 52 AI infrastructure stocks.
After a strong rebound in PENN Entertainment’s share price, but with the stock still trading below the average analyst price target and the company reporting a loss, does the current set up still favor buyers in terms of risk and reward?
Most Popular Narrative: 74.3% Undervalued
The leading narrative on PENN Entertainment compares a fair value of $79.65 to the last close at $20.48, framing the stock as deeply discounted on a long term view.
PENN's stock has been a disaster for years, EV is way down. With fundamentals of its casinos solid, write offs of mistakes behind them, and valuation at a nadir, the opportunity for a major upside breakout is apparent. The Company is sizable, $7 billion in revenues and $1.7 billion in EBITDAR, its not going away. In fact, a hostile bid or management takedown is not impossible. Assets are top notch, even if management is not. Expect a major upswing in earnings in 2026 with an accompanying share price rise. I place fair value at about $30 per share........That would be 7 times 2027 EBITDA to Enterprise Value
This narrative from Frosty555 leans on a detailed earnings ramp, margin rebuild, and a richer future EBITDA multiple. It raises questions about which assumptions push fair value so far above today’s share price and why the discount rate matters so much to that outcome.
Result: Fair Value of $79.65 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, PENN Entertainment’s recent share price rebound, alongside a reported loss of $957.2 million and a 5 year total shareholder return down 69.13%, could challenge that upside story.
Find out about the key risks to this PENN Entertainment narrative.
Next Steps
If this mix of optimism and caution around PENN Entertainment has you thinking, consider acting while the data is fresh and shape your own view by reviewing the 3 key rewards.
Looking for more investment ideas beyond PENN Entertainment?
If PENN Entertainment has sharpened your interest, do not stop here. Use the Simply Wall St Screener to spot other opportunities before they move without you.
- Target potential mispricing by scanning a curated set of 46 high quality undervalued stocks that may trade below their assessed worth on key fundamentals.
- Prioritise resilience by reviewing 80 resilient stocks with low risk scores that score well on financial strength and business risk factors.
- Get ahead of the crowd by checking the screener containing 20 high quality undiscovered gems that meet quality filters yet still fly under most investors' radar.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com