Caesars Entertainment Corporation (CZR) Company Bio
Caesars Entertainment provides casino-entertainment and hospitality services in the United States and internationally. It operates in four segments: Caesars Entertainment Resort Properties, Caesars Growth Partners Casino Properties and Developments, Caesars Interactive Entertainment, and Caesars Entertainment Operating Company. The company was founded in 1937 and is based in Las Vegas, Nevada.
CZR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for CAESARS ENTERTAINMENT Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that CAESARS ENTERTAINMENT Corp ranked in the 34th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for CZR, they are:
19% of the company's capital comes from equity, which is greater than merely 11.64% of stocks in our cash flow based forecasting set.
CAESARS ENTERTAINMENT Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 0.02. This coverage rate is greater than that of just 17.48% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, CAESARS ENTERTAINMENT Corp experienced a tax rate of about 132% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 97.94% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CRWS, CHH, DLX, BOOT, and HD can be thought of as valuation peers to CZR, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.