VICI Properties (VICI): How Fresh Analyst Optimism and Strong Q2 Results Shape the Latest Valuation Outlook

If you own or are thinking about buying shares of VICI Properties (VICI), the company’s latest quarterly performance is the kind of event that gets your attention. Reporting Q2 revenues up 4.6% from last year and a net income jump of nearly 17%, the real estate investment trust is sending a strong signal about the resilience and earning power of its hospitality and entertainment portfolio. Add to that a wave of reiterated positive outlooks from major analysts, and it is clear why this result might raise questions for anyone invested or looking to invest in VICI Properties.

This string of upbeat news follows a steady performance run for VICI Properties. The stock has gained more than 16% so far this year, with a 6% climb over the past three months and 21% total return in the past three years. While not every quarter is packed with double-digit profit growth, momentum appears to be building behind VICI’s strategy, especially in a property sector that does not always deliver surprises like these.

Now the question is front and center: after this surge in profits and positive sentiment, is VICI Properties undervalued, or is the market already pricing in everything good that could happen next?

Most Popular Narrative: 7.7% Undervalued

According to community narrative, VICI Properties is considered undervalued by 7.7%, based on forecasts for future growth, profitability, and risk factors.

The company's scale, access to $2.9 billion in liquidity, and disciplined internal funding position enable accretive acquisitions and partnerships without near-term dependence on capital markets. This supports earnings and AFFO per share growth, while maintaining low general and administrative expenses and strong net margins.

Curious why VICI’s valuation stands out against peers? Community analysts base their optimism on a serious mix of stable income, defensive lease structures, and disciplined expansion. Which quantitative forecasts drive the fair value higher, and are the experts expecting industry-beating performance for years ahead? Explore further to see which powerful assumptions could be outpacing the market’s expectations.

Result: Fair Value of $36.59 (UNDERVALUED)

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

However, risks remain, including evolving online gaming trends and VICI's reliance on a few major tenants, which could change future growth assumptions.

Find out about the key risks to this VICI Properties narrative.

Another View: Discounted Cash Flow Model

The SWS DCF model also signals that VICI Properties is undervalued based on expected future cash flows. However, this method makes different assumptions compared to the analyst consensus. Could long-term cash flow potential be underestimated or overhyped?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out VICI Properties for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own VICI Properties Narrative

If you would rather chart your own course or take a deeper dive into the numbers, you can build your personal VICI Properties story in just a few minutes. Do it your way.

A great starting point for your VICI Properties 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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