Golden Entertainment, Inc. provides gaming, dining, entertainment, and guest services in the United States. The company operates the Pahrump Nugget Hotel & Casino, Gold Town Casino, and Lakeside Casino and RV Park resorts located in Pahrump, Nevada; and the Rocky Gap Resort located in Flintstone, Maryland. The company was founded in 1998 and is based in Las Vegas, Nevada.
GDEN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Golden Entertainment Inc. To summarize, we found that Golden Entertainment Inc ranked in the 0th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 100%. In terms of the factors that were most noteworthy in this DCF analysis for GDEN, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 18. Notably, its equity weight is greater than merely 9.42% of US equities in the Consumer Cyclical sector yielding a positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 4.78 years, is -0.27% -- higher than only 6.25% of stocks in our DCF forecasting set.
Golden Entertainment Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 0.13. This coverage rate is greater than that of only 21.96% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as GDEN, try DIS, DJCO, KTB, RRGB, and WSG.
Now I'd like to turn the conference over to Joe Jaffoni, investor relations. In any case, Golden Entertainment's founder, chairman, and chief executive officer, Blake Sartini; and the company's president and chief financial officer, Charles Protell are on today's call.
LAS VEGAS--(BUSINESS WIRE)--Golden Entertainment, Inc. (NASDAQ:GDEN) (“Golden Entertainment” or the “Company”) today reported financial results for the first quarter ended March 31, 2020. Blake Sartini, Chairman and Chief Executive Officer of Golden Entertainment, commented, “The COVID-19 pandemic forced the mandated closure of all our operations beginning in mid-March, and continues to have an unprecedented impact on our business and the gaming and entertainment industry in general. This is re