A Look at United Parks & Resorts's Valuation Following DOJ Disability Discrimination Investigation

The U.S. Department of Justice recently launched a civil rights investigation into United Parks & Resorts. The investigation is examining whether the company’s theme park policies discriminate against guests with disabilities. Questions around accessibility and compliance are back in the spotlight.

See our latest analysis for United Parks & Resorts.

The DOJ’s investigation comes at a time when investors are already watching United Parks & Resorts closely, following a steep 30-day share price return of -26.5% and a year-to-date drop of nearly 39%. Ongoing regulatory scrutiny has only intensified market concerns, putting additional pressure on momentum that was already fading. In the bigger picture, the company’s one-year total shareholder return is down almost 40%. It still posts a modest positive total return for long-term holders over five years.

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With the stock now trading at a significant discount to analyst targets and its intrinsic value, the big question for investors is whether United Parks & Resorts is undervalued or if the market is simply bracing for tougher times ahead. Is this a buying opportunity, or are expectations for future growth already fully reflected in the price?

Most Popular Narrative: 25.2% Undervalued

United Parks & Resorts is trading significantly below the most widely followed fair value estimate. Recent market turbulence and analyst caution have impacted sentiment. With a calculated fair value of $47.18 and a last close of $35.29, the gap is wide and hard to ignore.

Strong consumer demand and investments in new experiences are expected to drive higher attendance, increased guest spending, and improved earnings visibility. Digital initiatives and underutilized real estate offer upside potential. Share repurchases reflect management's confidence despite short-term operational challenges.

Read the complete narrative.

Ever wondered what forces are fueling this deep discount? The narrative centers on rising guest engagement, major spending upgrades, and untapped assets waiting in the wings. Want to see which performance assumptions push the valuation this high and what kind of growth model underpins it? Jump in and explore the full picture driving this upbeat fair value.

Result: Fair Value of $47.18 (UNDERVALUED)

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

However, risks remain, such as softening attendance outside Orlando and weather-related disruptions. These factors could pressure guest spending and challenge recovery assumptions.

Find out about the key risks to this United Parks & Resorts narrative.

Build Your Own United Parks & Resorts Narrative

If you see the story differently or want hands-on experience with the numbers, you can craft your own perspective in just a few minutes. Do it your way.

A great starting point for your United Parks & Resorts research is our analysis highlighting 3 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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