- CZR has many tailwinds working in its favor with increases in travel, relaxation of Covid-19 mandates, and continued expansion of room capacity.
- Casino/Resort companies generally performed better than expected during the Great Recession.
- When compared to industry averages and direct competitors, relative valuation multiples indicate that CZR is undervalued.
- After conducting a valuation of CZR’s assets, I deducted that investors are currently not paying for 93% of the digital/other segment, implying that shareholders are receiving free revenue.
- Assuming analyst consensus estimates in FY22/FY23 and a CAGR of 10% for CZR’s top-line in FY24 and FY25, my DCF model arrived at an intrinsic value of $74.23 (53.50% upside).
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It's Time To Bet On Caesars Entertainment