Eldorado Resorts Inc. is a casino entertainment company that owns and operates six properties in five states. The company was founded in 1973 and is based in Reno, Nevada.
ERI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Eldorado Resorts Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Eldorado Resorts Inc ranked in the 57th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 9.83%. In terms of the factors that were most noteworthy in this DCF analysis for ERI, they are:
Its compound free cash flow growth rate, as measured over the past 4.65 years, is 0.43% -- higher than 80.35% of stocks in our DCF forecasting set.
49% of the company's capital comes from equity, which is greater than only 22.24% of stocks in our cash flow based forecasting set.
The weighted average cost of capital for the company is 10. This value is greater than 75.26% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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