Scientific Games Corporation develops technology-based products and services, and associated content for the gaming and lottery industries worldwide. The company was founded in 1984 and is based in Las Vegas, Nevada.
SGMS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SGMS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Scientific Games Corp ranked in the 42th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 21%. In terms of the factors that were most noteworthy in this DCF analysis for SGMS, they are:
27% of the company's capital comes from equity, which is greater than just 9.05% of stocks in our cash flow based forecasting set.
Scientific Games Corp's weighted average cost of capital (WACC) is 16%; for context, that number is higher than 94.64% of tickers in our DCF set.
As a business, Scientific Games Corp experienced a tax rate of about 52% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 90.52% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BSET, CCK, IHG, AAP, and AXL can be thought of as valuation peers to SGMS, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
The stock of Scientific Games Corp. (SGMS) - a leading developer of technology-based products and services for global gaming and lottery markets - recovered all it lost in the March sell-off (and then some...) after it announced gaming industry investor Caledonia bought a 34.9% stake in the company from MacAndrews...
Michael Fitzsimmons on Seeking Alpha | September 29, 2020
Scientific Games ([[SGMS]] +3.1%) secures a five-year contract renewal with Flutter Entertainment ([[PDYPF]] -1.9%) to continue providing its OpenSports technology to the operators' portfolio of global brands.The renewal comes on the back of FanDuel selecting Scientific Games to power their sportsbook offering across all current and future regulated markets in the U.S.Together, Flutter...
LAS VEGAS , Sept. 28, 2020 /PRNewswire/ -- Scientific Games Corporation (NASDAQ: SGMS ) ("Scientific Games" or the "Company") secured a five-year contract renewal with long-term customer Flutter Entertainment plc to continue providing its OpenSports ™ technology to the operators' portfolio of global brands. Flutter Entertainment is the world's leading sports betting, gaming and entertainment provider serving over 13 million customers worldwide through its innovative, diverse and distinctive brands including FanDuel in the U.S., Paddy Power , Betfair and Sky Bet in the U.K. and Europe and SportsBet in Australia . The five-year renewal comes on the back of FanDuel selecting Scientific Games to power their sportsbook offering across all current and future regulated markets in the U.S. Flut...
Scientific Games Corp (NASDAQ: SGMS ) has recently gone through a change in ownership and leadership, which offers prospects for value creation not seen in the last two decades, according to Jefferies. The Scientific Games Analyst: David Katz upgraded Scientific Games from Hold to Buy, while raising the price target from $20 to $50. The Scientific Games Thesis: On Sept. 14, MacAndrews & Forbes sold its 39% stake in Scientific Games to a group led by Caledonia, which suggests “a sea change in operating and stock performance,” … Full story available on Benzinga.com
Scientific Games Corporation has entered into a new contract with the Dutch National Lottery Nederlandse Loterij. The deal will see Scientific Games provide its instant game “scratch cards” to the Lottery for a period of four years through the Scientific Games Enhanced Partnership (SGEP), a performance-driven management programme used by more than 20 lotteries […]