Dave & Buster's Entertainment, Inc. (PLAY) Company Bio
Dave & Buster's Entertainment owns and operates venues that combine dining and entertainment for adults and families in North America. The company was founded in 1982 and is based in Dallas, Texas.
PLAY 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 Dave & Buster's Entertainment Inc. To summarize, we found that Dave & Buster's Entertainment Inc ranked in the 86th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Dave & Buster's Entertainment Inc ended up being:
21% of the company's capital comes from equity, which is greater than just 8.91% of stocks in our cash flow based forecasting set.
Dave & Buster's Entertainment Inc's weighted average cost of capital (WACC) is 5%; for context, that number is higher than only 0.38% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), Dave & Buster's Entertainment Inc has a reliance on debt greater than 87.69% of them.
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 PLAY, try UFAB, LIVE, MIK, SNBR, and AGS.
For those who didn't watch or listen, CorpGov welcomes you to read the following interviews, adapted from our April Webinar: Best Corporate Governance Practices During the Coronavirus Crisis and Beyond, sponsored by Vinson & Elkins LLP, downloadable free at CorpGov Premium. We discussed a range of topics related to corporate governance including recent activist investor […]
Dave & Buster’s Entertainment, Inc. (PLAY) (the “Company”), an owner and operator of entertainment and dining venues, today announced that it has filed a prospectus supplement with the Securities and Exchange Commission (“SEC”), under which it may offer and sell shares of its common stock (the “Shares”) having an aggregate offering price of up to $75,000,000 from time to time through an “at-the-market” equity offering program (the “ATM Program”). The Company currently intends to use the net proceeds from sales of Shares under the ATM Program primarily to strengthen its balance sheet, principally as necessitated by the effects of the COVID-19 outbreak on its business, which would include use for general corporate purposes. The timing of any sales will depend on a variety of factors to ...