PENN Entertainment, Inc.

NasdaqGS:PENN Stock Report

Market Cap: US$3.0b

PENN Entertainment Valuation

Is PENN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 ($20.02) is trading below our estimate of fair value ($54.66)

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.

The above table shows the Price to Sales ratio for PENN. This is calculated by dividing PENN's market cap by their current revenue.
What is PENN's PS Ratio?
PS Ratio0.5x
SalesUS$6.30b
Market CapUS$3.04b

Price to Sales Ratio vs Peers

How does PENN's PS Ratio compare to its peers?

The above table shows the PS ratio for PENN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.4x
SGHC Super Group (SGHC)
1.8x6.7%US$3.0b
IGT International Game Technology
0.9x-18.1%US$3.8b
RRR Red Rock Resorts
1.5x2.6%US$5.2b
RSI Rush Street Interactive
1.3x12.1%US$2.7b
PENN PENN Entertainment
0.5x6.2%US$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 (1.4x).

Price to Sales Ratio vs Industry

How does PENN's PS Ratio compare vs other companies in the US Hospitality Industry?

30 CompaniesPrice / SalesEstimated GrowthMarket Cap
BLMN Bloomin' Brands
0.2x-2.7%US$1.07b
CBRL Cracker Barrel Old Country Store
0.3x0.7%US$1.05b
BALY Bally's
0.3x2.4%US$726.31m
TAST Carrols Restaurant Group
0.3x2.9%US$478.64m
PENN 0.5xIndustry Avg. 1.6xNo. of Companies30PS01.22.43.64.86+
30 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: PENN is good value based on its Price-To-Sales Ratio (0.5x) compared to the US Hospitality industry average (1.6x).

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.

PENN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.5x
Fair PS Ratio1.3x

Price-To-Sales vs Fair Ratio: PENN is good value based on its Price-To-Sales Ratio (0.5x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst PENN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$20.02
US$22.71
+13.4%
15.3%US$30.00US$18.00n/a17
Nov ’25US$19.45
US$22.47
+15.5%
15.6%US$30.00US$18.00n/a17
Oct ’25US$18.47
US$22.76
+23.3%
15.5%US$30.00US$18.00n/a17
Sep ’25US$18.62
US$22.82
+22.6%
15.3%US$30.00US$18.00n/a17
Aug ’25US$18.92
US$22.24
+17.5%
18.2%US$30.00US$17.00n/a17
Jul ’25US$18.78
US$22.59
+20.3%
20.5%US$32.00US$17.00n/a17
Jun ’25US$17.50
US$21.82
+24.7%
19.2%US$32.00US$17.00n/a19
May ’25US$16.44
US$25.56
+55.5%
16.0%US$33.00US$18.00n/a19
Apr ’25US$18.27
US$26.62
+45.7%
16.7%US$36.00US$20.00n/a19
Mar ’25US$18.50
US$26.65
+44.1%
16.9%US$36.00US$20.00n/a18
Feb ’25US$21.39
US$29.88
+39.7%
13.6%US$38.00US$23.00n/a19
Jan ’25US$26.02
US$29.50
+13.4%
16.4%US$38.00US$22.00n/a18
Dec ’24US$25.58
US$29.22
+14.2%
16.4%US$38.00US$22.00n/a18
Nov ’24US$19.60
US$30.89
+57.6%
18.8%US$44.00US$24.00US$19.4518
Oct ’24US$22.95
US$32.82
+43.0%
16.3%US$44.00US$26.00US$18.4717
Sep ’24US$24.04
US$32.65
+35.8%
15.5%US$44.00US$27.00US$18.6217
Aug ’24US$26.10
US$35.18
+34.8%
23.2%US$56.00US$26.00US$18.9217
Jul ’24US$24.03
US$36.00
+49.8%
23.2%US$56.00US$27.00US$18.7818
Jun ’24US$24.80
US$36.28
+46.3%
22.4%US$56.00US$27.00US$17.5018
May ’24US$30.53
US$41.11
+34.7%
21.8%US$65.00US$31.00US$16.4418
Apr ’24US$29.66
US$41.89
+41.2%
21.1%US$65.00US$31.00US$18.2718
Mar ’24US$30.65
US$41.89
+36.7%
21.1%US$65.00US$31.00US$18.5018
Feb ’24US$35.85
US$44.17
+23.2%
27.3%US$80.00US$33.00US$21.3918
Jan ’24US$29.70
US$46.56
+56.8%
24.8%US$80.00US$32.00US$26.0218
Dec ’23US$35.70
US$46.94
+31.5%
24.7%US$80.00US$32.00US$25.5818
Nov ’23US$33.62
US$49.12
+46.1%
24.8%US$80.00US$32.00US$19.6017

Analyst Forecast: Target price is less than 20% higher than the current share price.

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