A Look at Caesars Entertainment’s (CZR) Valuation After S&P 500 Removal and Operational Setbacks

Caesars Entertainment (CZR) stock has faced heavy selling pressure after being removed from the S&P 500. This change was triggered by its falling market capitalization and broader investor concern about ongoing operational challenges. Persistent weakness in its Las Vegas and regional casino properties has added to the pressure, raising questions about the company's next steps in navigating these headwinds.

See our latest analysis for Caesars Entertainment.

This stretch of losses has weighed heavily on Caesars Entertainment’s momentum, even as it celebrated the grand opening of a new sportsbook venue in New Jersey. The recent removal from the S&P 500 put a spotlight on its challenges, with year-to-date share price down nearly 30% and a one-year total shareholder return of -40%. This highlights a fading outlook despite management’s continued efforts to innovate.

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With shares now trading at a steep discount from their highs, investors are left wondering whether Caesars Entertainment’s challenges are fully reflected in the current price or if there is a true buying opportunity ahead.

Most Popular Narrative: 33.9% Undervalued

Compared to the last close at $22.94, the narrative suggests Caesars Entertainment’s fair value sits much higher, indicating the market may be overly pessimistic amid recent volatility.

The rapid growth and sustained profitability in Caesars' Digital segment, especially online casino and sports betting, reflects robust consumer adoption of digital and mobile gaming. This expands the customer base and provides higher margin recurring revenue streams. Anticipated continued digital expansion is expected to drive both top-line revenue and increased EBITDA margins.

Read the complete narrative.

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Result: Fair Value of $34.71 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent margin pressure and ongoing reliance on leisure customers could challenge the optimistic scenario if demand or profitability does not recover as anticipated.

Find out about the key risks to this Caesars Entertainment narrative.

Build Your Own Caesars Entertainment Narrative

If you’d rather dive into the data on your own terms or see a different angle, building your personal narrative takes just minutes. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Caesars Entertainment.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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