PENN Entertainment Valuation
Is PENN * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation 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 PENN * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: PENN * (MX$410.7) is trading below our estimate of fair value (MX$930.38)
Significantly Below Fair Value: PENN * is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for PENN *?
Key metric: As PENN * is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.
| What is PENN *'s PS Ratio? | |
|---|---|
| PS Ratio | 0.5x |
| Sales | US$6.30b |
| Market Cap | US$3.00b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2.1x |
| Enterprise Value/EBITDA | 32.2x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does PENN *'s PS Ratio compare to its peers?
| Company | Forward PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 1.3x | ||
AGUILAS CPO Ollamani | 0.7x | 9.2% | Mex$4.2b |
ALSEA * Alsea. de | 0.5x | 9.1% | Mex$38.4b |
RLH A RLH Properties. de | 2.5x | n/a | Mex$18.4b |
POSADAS A Grupo Posadas. de | 1.4x | n/a | Mex$12.9b |
PENN * PENN Entertainment | 0.5x | 6.2% | Mex$3.0b |
Price-To-Sales vs Peers: PENN * is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (1.3x).
Price to Sales Ratio vs Industry
How does PENN *'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 | |
|---|---|---|---|
Price-To-Sales vs Industry: PENN * 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 PENN *'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.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 0.5x |
| Fair PS Ratio | n/a |
Price-To-Sales vs Fair Ratio: Insufficient data to calculate PENN *'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?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | n/a | Mex$461.28 0% | 15.3% | Mex$609.47 | Mex$365.68 | n/a | 17 |
| Nov ’25 | Mex$377.30 | Mex$445.50 +18.1% | 15.6% | Mex$594.77 | Mex$356.86 | n/a | 17 |
| Oct ’25 | n/a | Mex$453.95 0% | 15.5% | Mex$598.23 | Mex$358.94 | n/a | 17 |
| Sep ’25 | n/a | Mex$429.87 0% | 15.3% | Mex$565.03 | Mex$339.02 | n/a | 17 |
| Aug ’25 | n/a | Mex$402.05 0% | 18.2% | Mex$542.45 | Mex$307.39 | n/a | 17 |
| Jul ’25 | n/a | Mex$413.26 0% | 20.5% | Mex$585.46 | Mex$311.02 | n/a | 17 |
| Jun ’25 | n/a | Mex$370.12 0% | 19.2% | Mex$542.90 | Mex$288.42 | n/a | 19 |
| May ’25 | n/a | Mex$435.03 0% | 16.0% | Mex$561.59 | Mex$306.32 | n/a | 19 |
| Apr ’25 | Mex$310.00 | Mex$444.13 +43.3% | 16.7% | Mex$600.72 | Mex$333.74 | n/a | 19 |
| Mar ’25 | n/a | Mex$455.67 0% | 16.9% | Mex$615.54 | Mex$341.96 | n/a | 18 |
| Feb ’25 | n/a | Mex$512.45 0% | 13.6% | Mex$651.73 | Mex$394.47 | n/a | 19 |
| Jan ’25 | Mex$432.60 | Mex$507.67 +17.4% | 16.4% | Mex$653.94 | Mex$378.60 | n/a | 18 |
| Dec ’24 | n/a | Mex$499.93 0% | 16.4% | Mex$650.10 | Mex$376.37 | n/a | 18 |
| Nov ’24 | Mex$360.00 | Mex$563.27 +56.5% | 18.8% | Mex$802.35 | Mex$437.65 | Mex$377.30 | 18 |
| Oct ’24 | n/a | Mex$560.41 0% | 16.3% | Mex$751.23 | Mex$443.91 | n/a | 17 |
| Sep ’24 | Mex$389.00 | Mex$556.42 +43.0% | 15.5% | Mex$749.91 | Mex$460.17 | n/a | 17 |
| Aug ’24 | Mex$439.00 | Mex$591.97 +34.8% | 23.2% | Mex$942.41 | Mex$437.55 | n/a | 17 |
| Jul ’24 | n/a | Mex$616.03 0% | 23.2% | Mex$958.27 | Mex$462.02 | n/a | 18 |
| Jun ’24 | n/a | Mex$643.96 0% | 22.4% | Mex$994.04 | Mex$479.27 | n/a | 18 |
| May ’24 | n/a | Mex$737.06 0% | 21.8% | Mex$1,165.36 | Mex$555.79 | n/a | 18 |
| Apr ’24 | n/a | Mex$758.31 0% | 21.1% | Mex$1,176.69 | Mex$561.19 | Mex$310.00 | 18 |
| Mar ’24 | n/a | Mex$758.31 0% | 21.1% | Mex$1,176.69 | Mex$561.19 | n/a | 18 |
| Feb ’24 | Mex$590.00 | Mex$831.64 +41.0% | 27.3% | Mex$1,506.36 | Mex$621.37 | n/a | 18 |
| Jan ’24 | n/a | Mex$914.30 0% | 24.8% | Mex$1,571.12 | Mex$628.45 | Mex$432.60 | 18 |
| Dec ’23 | n/a | Mex$906.62 0% | 24.7% | Mex$1,545.02 | Mex$618.01 | n/a | 18 |
| Nov ’23 | n/a | Mex$975.84 0% | 24.8% | Mex$1,589.39 | Mex$635.76 | Mex$360.00 | 17 |
Analyst Forecast: Target price is less than 20% higher than the current share price.