PENN Entertainment Valuation

Q: What is the Fair Price of P2EN34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

P2EN34 (R$11.7) is trading below our estimate of [[fair value]] (R$23.95)

Is P2EN34 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of P2EN34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: P2EN34 (R$11.7) is trading below our estimate of fair value (R$23.95)

Significantly Below Fair Value: P2EN34 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for P2EN34?

Key metric: As P2EN34 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for P2EN34. This is calculated by dividing P2EN34's market cap by their current revenue.
What is P2EN34's PS Ratio?
PS Ratio	0.5x
Sales	US$6.30b
Market Cap	US$3.07b

P2EN34 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.1x
Enterprise Value/EBITDA	32.4x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does P2EN34's PS Ratio compare to its peers?

The above table shows the PS ratio for P2EN34 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	1.4x
SMFT3 Smartfit Escola de Ginástica e Dança	2.3x	16.7%	R$11.7b
SGHC Super Group (SGHC)	1.9x	6.7%	US$3.0b
IGT International Game Technology	0.9x	-18.1%	US$3.9b
YDUQ3 Yduqs Participações	0.5x	6.6%	R$2.9b
P2EN34 PENN Entertainment	0.5x	6.2%	R$3.1b

Price-To-Sales vs Peers: P2EN34 is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (1.4x).

Price to Sales Ratio vs Industry

How does P2EN34's PS Ratio compare vs other companies in the South American Hospitality Industry?

3 Companies	Price / Sales	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: P2EN34 is good value based on its Price-To-Sales Ratio (0.5x) compared to the South American Hospitality industry average (0.9x).

Price to Sales Ratio vs Fair Ratio

What is P2EN34's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

P2EN34 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.5x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate P2EN34's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.