CZR
Caesars Entertainment, Inc.
$29.66
Platform & Compounding FCF
85%
Two-stage FCF DCF
Mild
·
Conviction
Overvalued
Trading 2.0% above fair value
You pay
$29.66
Bear
$15.45
Fair
$29.08
Bull
$43.87
Bear
$15.45
-47.9%
3% stage 1 growth, 12% discount
Fair
$29.08
-1.9%
4% stage 1 growth, 12% discount
Bull
$43.87
+47.9%
6% stage 1 growth, 12% discount
Adjust Assumptions
4.3%
12.0%
3.0%
Key Value Driver
FCF growth rate (4% base case)
Terminal Value % of EV
30%
Implied Market Multiple
12.6x
Market is pricing in (growth)
4.4%
vs 4.3% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (31 analysts)
$31.11
Divergence from AlphaVal
7%
Summary
Using a two-stage FCF DCF with 4% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $29.08 per share.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions