Assessing Light & Wonder (LNW) Valuation Following Recent 13% Share Price Slide

Light & Wonder (LNW) shares have drifted lower in the past month, losing around 13%. Investors are watching how the stock’s recent slide might impact its longer-term performance, especially given the company’s steady revenue growth.

See our latest analysis for Light & Wonder.

Light & Wonder’s recent 30-day share price slide of 12.8% comes after a year marked by steady revenue growth. However, momentum has faded, with the one-year total shareholder return at -17%. Over the longer term, disciplined investors have still been rewarded, as the five-year total shareholder return sits above 130%.

If the latest pullback has you wondering what else the market is offering, this could be the ideal moment to broaden your search and discover fast growing stocks with high insider ownership

With shares lagging and trading well below analyst price targets, is this a compelling entry point for Light & Wonder, or is the market already factoring in the company’s future prospects, leaving little room for upside?

Most Popular Narrative: 29.7% Undervalued

Light & Wonder's consensus fair value sits much higher than the recent closing price, reflecting strong optimism embedded in the dominant market narrative. This narrative seeks to connect long-term growth drivers with the current discount that investors are experiencing.

Ongoing digital transformation and increased online gaming penetration, particularly in North America where iGaming gross gaming revenue grew 25% YoY, support demand for Light & Wonder's content aggregation and omnichannel solutions. This trend helps boost recurring revenues and margins as digital channels expand.

Read the complete narrative.

Curious how this narrative arrives at a price target significantly above today's market? The interesting aspect is that it relies on growth projections and a profit outlook comparable to some of the most ambitious stories in the sector. What numbers did analysts forecast to justify that gap? Explore the full narrative for more details.

Result: Fair Value of $108.36 (UNDERVALUED)

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

However, persistent regulatory risks and shifting customer spending could challenge Light & Wonder’s bullish outlook. These factors may act as key catalysts that could disrupt this narrative.

Find out about the key risks to this Light & Wonder narrative.

Build Your Own Light & Wonder Narrative

If you think there’s more to the story or want to dig into the numbers yourself, you can shape your own view on Light & Wonder in just a few minutes. Do it your way

A great starting point for your Light & Wonder research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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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