Churchill Downs Intrinsic Value Calculation – Churchill Downs Moving Ahead with Casino Resort in Richmond
June 21, 2023
🌥️Trending News
Churchill Downs ($NASDAQ:CHDN), the famous horse racing company, is pushing ahead with plans for a casino resort in Richmond. The casino resort is part of a larger initiative by Churchill Downs to expand its operations across the country. Since then, Churchill Downs has become a major force in the gaming and entertainment industry, offering a wide variety of gaming options including slots, video poker, sports betting, and live horse racing. It would feature a large casino floor with gaming tables and machines, as well as restaurants and bars.
The casino resort is expected to generate millions of dollars in tax revenue for the city of Richmond and create hundreds of jobs. This is just one of many steps the company has taken to expand its presence in the gaming and entertainment industry. With its strong financial position and long history of success, Churchill Downs looks to make a lasting impact on the Virginia gaming landscape in the years to come.
Market Price
On Wednesday, CHURCHILL DOWNS stock opened at $138.7 and closed at $137.8, representing a decrease of 0.8% from the prior closing price of 139.0. The casino is expected to provide a significant boost to the economy of Richmond and surrounding areas, with the promise of new jobs and revenue. CHURCHILL DOWNS is currently working on the regulatory and planning process for the project and expects construction to begin later this year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Churchill Downs. More…
| Total Revenues | Net Income | Net Margin |
| 2.01k | 553 | 16.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Churchill Downs. More…
| Operations | Investing | Financing |
| 617.5 | -2.99k | 2.25k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Churchill Downs. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.27k | 5.57k | 18.81 |
Key Ratios Snapshot
Some of the financial key ratios for Churchill Downs are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.0% | 33.4% | 47.4% |
| FCF Margin | ROE | ROA |
| 4.1% | 94.5% | 9.5% |
Analysis – Churchill Downs Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of CHURCHILL DOWNS‘s wellbeing. After extensive research and analysis, we have determined the intrinsic value of CHURCHILL DOWNS’s shares to be around $143.2 by using our proprietary Valuation Line. At the moment, CHURCHILL DOWNS is being traded at $137.8, which is a fair price that is currently undervalued by 3.8%. Therefore, this presents an opportunity for investors to purchase CHURCHILL DOWNS at a discounted rate. More…
Peers
It is headquartered in Louisville, Kentucky, United States. The company was founded in 1875 by Col. Meriwether Lewis Clark Jr. As of 2019, Churchill Downs Inc operates six horse racing facilities, including the world-renowned Churchill Downs Racetrack. The company also owns and operates the Kentucky Derby Museum and the Kentucky Oaks Museum. In addition to horse racing, Churchill Downs Inc also offers gaming and entertainment experiences through its subsidiaries, including Big Fish Casino, Fair Grounds Race Course & Slots, and Hawthorne Race Course.
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Summary
Churchill Downs is moving forward with plans for a casino resort in Richmond, Kentucky. The company has filed an application with the Kentucky Racing Commission to become a Racino operator. They aim to build a facility with a casino, hotel, sports bar, and upscale restaurants. Investments in this project will include purchasing land for the resort, construction costs, and necessary permitting costs.
Investors should take into consideration the projected costs and revenue associated with this project, as well as the potential competition from other Racino operators. Furthermore, an analysis of the local market conditions and population dynamics should be completed before investing. Churchill Downs has a long history of success in racing, however, investing in this project comes with some risk.
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