Caesars Entertainment, Inc. (CZR)
Valuation Overview•Is Caesars Entertainment, Inc. Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
Fragile underlying quality score of 34/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street is broadly bullish, projecting solid upside alongside robust expected earnings growth. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
CZR struggles with subpar profitability and pressured margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company exhibits steady, low-single-digit revenue growth paired with stable bottom-line earnings. The company maintains healthy operational efficiency with a 17.8% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $2.9B | +2.1% | +2.0% | +25.9% | +31.9% | |
| EBITDA | $847.0M | — | +5.9% | — | — | |
| Net Income | -$98.0M | -80.6% | +17.7% | — | — | |
| EPS (Diluted) | $-0.48 | -87.6% | — | — | — | |
| Free Cash Flow | $36.0M | +385.7% | +182.8% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 43.9% | 47.6% | 48.8% | 47.2% |
| Operating Margin | 17.8% | 20.0% | 18.3% | 12.8% |
| Net Margin | -4.2% | -0.0% | -3.8% | -5.2% |
| FCF Margin | 4.7% | 2.5% | 2.9% | 1.7% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $-0.19 | $-0.48 | -152.6% | ||
| Q1'26 | $-0.18 | $-1.23 | -583.3% | ||
| Q4'25 | $-0.11 | $-0.27 | -145.5% | ||
| Q3'25 | $0.07 | $-0.39 | -657.1% | ||
| Q2'25 | $-0.19 | $-0.54 | -184.2% | ||
| Q1'25 | $-0.15 | $0.05 | +133.3% | ||
| Q4'24 | $0.21 | $-0.04 | -119.0% | ||
| Q3'24 | $0.12 | $-0.02 | -116.7% |
Total return is +5.3% (1Y), lagging the benchmark by -19.7%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +24.0% | +14.7% | — |
| 1Y | +5.3% | -19.7% | — |
| 3YCAGR | -15.9% | -35.5% | — |
| 5YCAGR | -21.8% | -34.9% | — |
| 10YCAGR | +13.4% | -0.6% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Caesars Entertainment, Inc. (CZR) valuation, health, and returns.
Caesars Entertainment, Inc. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. undervalued (implying +225.4% upside to DCF intrinsic value of $95.07)
Caesars Entertainment, Inc. has multiple valuation anchors: DCF Intrinsic Value: $95.07 | Peer Relative Fair Value: $56.45 | Wall Street Analyst Target: $30.88 (implying +5.7% upside). A convergence of these signals offers higher conviction.
Caesars Entertainment, Inc. displays weak financial health with a composite quality score of 34/100, supported by a Altman Z-Score of -0.4 (distress zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 5.4%.
Caesars Entertainment, Inc. returns capital via buybacks instead of dividends, carrying a 3.8% buyback yield and reducing outstanding shares by -3.3% in the last 12 months.
Caesars Entertainment, Inc.'s current growth trajectory is Stable. The company achieved +2.1% 1Y revenue growth and -87.6% 1Y EPS growth, compared to its 3Y revenue CAGR of +2.0%.
Wall Street consensus is Hold based on 31 analysts, beating EPS expectations in 25% of recent quarters with a -5-quarter streak. The consensus price target represents a +5.7% change from current levels.
Investment risks for Caesars Entertainment, Inc. include: -42.4% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 0.95x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.