Evaluating Caesars Entertainment (CZR): Is Recent Market Downturn Creating a Value Opportunity?

Caesars Entertainment (CZR) has landed in the spotlight as a mix of troubling economic news and sector headwinds took a toll on gaming stocks. Macro concerns and the rapid rise of online prediction markets have both played a part in recent stock declines.

See our latest analysis for Caesars Entertainment.

Shares of Caesars Entertainment have lost considerable ground in 2025, with momentum fading as heightened economic worries and new competition from online prediction markets weigh on investors. The company’s 1-year total shareholder return has plunged 50.9%, while the share price is down nearly a third year to date, underscoring persistent skepticism despite recent digital gaming partnerships and a solid value score.

If the shifting landscape in gaming has you rethinking your next investment, this could be the perfect time to discover fast growing stocks with high insider ownership

Against this challenging backdrop and with Caesars earning a standout value score, the big question is whether the recent decline means the stock is now undervalued or if the market has already accounted for any future growth prospects.

Most Popular Narrative: 46.7% Undervalued

At $21.86, Caesars Entertainment is priced far below what the most closely followed narrative considers fair value. This sets up a striking disconnect between analyst projections and the current pessimistic sentiment reflected in shares.

Strategic capital allocation into property renovations, new amenity rollouts (such as room remodels and high-return upgrades like Flamingo's pool experience), and slot machine enhancements are already showing positive returns. These investments are positioned to unlock additional property-level revenue and margin expansion over coming years.

Read the complete narrative.

Want to see the math behind this bold valuation? The entire narrative hinges on a unique mix of digital momentum and future margin expansion. Discover what aggressive forecasts and turnaround assumptions drive this fair value call.

Result: Fair Value of $41 (UNDERVALUED)

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

However, persistent debt and shifting consumer preferences toward digital or non-casino experiences could challenge earnings forecasts and threaten the long-term upside in Caesars shares.

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

Build Your Own Caesars Entertainment Narrative

If these conclusions are not what you see in the numbers, or if you want to dive deeper on your own, you can build your own story for Caesars Entertainment in just a few minutes. Do it your way

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

Looking for more smart investment ideas?

Don’t wait on the sidelines while other investors capture today’s most promising trends. Check out these handpicked opportunities that could set your portfolio apart:

• Power up your returns with generous payouts by tracking these 19 dividend stocks with yields > 3%, offering yields above 3% for steady income growth potential.
• Get ahead of tomorrow’s breakthroughs and uncover these 33 healthcare AI stocks, which is pushing boundaries in medical technologies and artificial intelligence innovation.
• Tap into emerging digital assets and seize the momentum with these 79 cryptocurrency and blockchain stocks, engineered to benefit from the expanding world of blockchain and crypto technologies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com