Penn National Gaming owns and operates 26 gaming and pari-mutuel properties in the U.S. and Canada. The company was founded in 1972 and is based in Wyomissing, Pennsylvania.
PENN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for PENN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Penn National Gaming Inc ranked in the 11th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 90.33%. The most interesting components of our discounted cash flow analysis for Penn National Gaming Inc ended up being:
40% of the company's capital comes from equity, which is greater than just 18.88% of stocks in our cash flow based forecasting set.
Penn National Gaming Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.92. This coverage rate is greater than that of just 20.64% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 15. This value is greater than 85.93% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BFAM, BOOT, BBBY, BLMN, and DIN can be thought of as valuation peers to PENN, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Penn National Gaming ([[PENN]] +1.2%) is holding up just fine after Deutsch Bank analyst Carlo Santarelli warned on the lacking fundamental and valuation support for the stock in a new note posted earlier today. "We think PENN has largely benefited from the retail community turning the ticker into an internet...
Penn National Gaming (PENN) is up a solid 4.98% after Rosenblatt Securities follows up on a JPMorgan note with a positive take on the casino operator as well. Naturally, Barstool featured prominently in the thesis. "Our test of the Barstool app, a successful launch in PA with minimal external marketing...
Barstool Sports founder Dave Portnoy said on a recent podcast that his company could have been purchased by someone other than Penn National Gaming. What Happened: Portnoy revealed on the "Pomp" podcast with Anthony Pompliano last week that Barstool promoted itself to other betting companies before Penn National Gaming (NASDAQ: PENN ). This list includes FanDuel, owned by Flutter Entertainment (OTC: PDYPY ); DraftKings Inc (NASDAQ: DKNG ); and Points Bet, he said. “FanDuel specifically could have gotten us for far cheaper than Penn did,” Portnoy said. “I think [other operator] were too scared of controversy and me.” Portnoy said he was surprised FanDuel would not sign a deal. "These guys we were doing business with — who I liked — they’re not going to make an offer?" he said. "You f----...