Penn Entertainment Stock Valuation

PENN
 Stock
  

USD 27.30  0.66  2.36%   

What is the current enterprise value of Penn Entertainment? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Penn Entertainment, is its stock price multiplied by the total number of shares outstanding, calculating Penn Entertainment's enterprise value requires a different approach. It uses Penn Entertainment's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Penn Entertainment holds a recent Real Value of $40.17 per share. The prevailing price of the company is $27.3. At this time, the company appears to be undervalued. Our model determines the value of Penn Entertainment from analyzing the company fundamentals such as Shares Outstanding of 169.51 M, return on equity of 11.36 %, and Operating Margin of 25.24 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support picking up undervalued entities and discarding overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
  
Penn Entertainment Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Penn Entertainment's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 27.30
Please note that Penn Entertainment's price fluctuation is very steady at this time. Calculation of the real value of Penn Entertainment is based on 3 months time horizon. Increasing Penn Entertainment's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Penn Entertainment is useful when determining the fair value of the Penn Entertainment stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Penn Entertainment. Since Penn Entertainment is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Penn Entertainment Stock. However, Penn Entertainment's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
40.17
Real Value
43.44
Upside
Estimating the potential upside or downside of Penn Entertainment helps investors to forecast how Penn Entertainment stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Penn Entertainment more accurately as focusing exclusively on Penn Entertainment's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
27.8630.3032.74
Details
Hype
Prediction
LowEstimated ValueHigh
23.7927.0630.33
Details
Naive
Forecast
LowNext ValueHigh
21.4424.7127.98
Details
13 Analysts
Consensus
LowTarget PriceHigh
38.0083.69150.00
Details

Penn Entertainment Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Penn Entertainment's current stock value. Our valuation model uses many indicators to compare Penn Entertainment value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Penn Entertainment competition to find correlations between indicators driving Penn Entertainment's intrinsic value. More Info.
Penn Entertainment is considered to be number one stock in price to earning category among related companies. It is considered to be number one stock in last dividend paid category among related companies creating about  0.03  of Last Dividend Paid per Price to Earning. The ratio of Price to Earning to Last Dividend Paid for Penn Entertainment is roughly  36.56 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Penn Entertainment by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Penn Entertainment's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Penn Entertainment's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Penn Entertainment's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Penn Entertainment and how it compares across the competition.

About Penn Entertainment Valuation

The stock valuation mechanism determines the current worth of Penn Entertainment on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Penn Entertainment. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Penn Entertainment based exclusively on its fundamental and basic technical indicators. By analyzing Penn Entertainment's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Penn Entertainment's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Penn Entertainment. We calculate exposure to Penn Entertainment's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Penn Entertainment's related companies.
Penn National Gaming, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences in North America. Penn National Gaming, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania. Penn Entertainment operates under Resorts Casinos classification in the United States and is traded on NASDAQ Exchange. It employs 21973 people.

Penn Entertainment Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Penn Entertainment does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio1.72
Earnings Quarterly Growth-43.20%
Revenue Growth22.70%
Enterprise Value To Ebitda10.81
Earnings Growth-47.30%
Enterprise Value To Revenue2.73
Please check Your Equity Center. You can also try Fundamental Analysis module to view fundamental data based on most recent published financial statements.

Complementary Tools for analysis

When running Penn Entertainment price analysis, check to measure Penn Entertainment's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Penn Entertainment is operating at the current time. Most of Penn Entertainment's value examination focuses on studying past and present price action to predict the probability of Penn Entertainment's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Penn Entertainment's price. Additionally, you may evaluate how the addition of Penn Entertainment to your portfolios can decrease your overall portfolio volatility.
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Is Penn Entertainment's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Penn Entertainment. If investors know Penn Entertainment will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Penn Entertainment listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Penn Entertainment is measured differently than its book value, which is the value of Penn Entertainment that is recorded on the company's balance sheet. Investors also form their own opinion of Penn Entertainment's value that differs from its market value or its book value, called intrinsic value, which is Penn Entertainment's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Penn Entertainment's market value can be influenced by many factors that don't directly affect Penn Entertainment's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Penn Entertainment's value and its price as these two are different measures arrived at by different means. Investors typically determine Penn Entertainment value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Penn Entertainment's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.