Caesars Entertainment Valuation

Q: What is the Fair Price of CZR1 * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CZR1 * (MX$856.54) is trading below our estimate of [[fair value]] (MX$1900.24)

Is CZR1 * 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 CZR1 * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CZR1 * (MX$856.54) is trading below our estimate of fair value (MX$1900.24)

Significantly Below Fair Value: CZR1 * is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CZR1 *?

Key metric: As CZR1 * is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for CZR1 *. This is calculated by dividing CZR1 *'s market cap by their current revenue.
What is CZR1 *'s PS Ratio?
PS Ratio	0.7x
Sales	US$11.27b
Market Cap	US$8.22b

CZR1 * 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	3x
Enterprise Value/EBITDA	9.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does CZR1 *'s PS Ratio compare to its peers?

The above table shows the PS ratio for CZR1 * 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	1.6x
AGUILAS CPO Ollamani	0.7x	9.2%	Mex$4.2b
ALSEA * Alsea. de	0.5x	9.1%	Mex$37.5b
RLH A RLH Properties. de	2.5x	n/a	Mex$18.4b
FDJ La Française des Jeux Société anonyme	2.5x	9.7%	€7.0b
CZR1 * Caesars Entertainment	0.7x	3.3%	Mex$8.2b

Price-To-Sales vs Peers: CZR1 * is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (1.6x).

Price to Sales Ratio vs Industry

How does CZR1 *'s PS Ratio compare vs other companies in the South American Hospitality Industry?

2 Companies	Price / Sales	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: CZR1 * is good value based on its Price-To-Sales Ratio (0.7x) compared to the South American Hospitality industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is CZR1 *'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.

CZR1 * PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.7x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate CZR1 *'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.