Penn Entertainment Intrinsic Value – PENN Entertainment’s ESPN Bet Rises to Monstrous Success, Catching Wall Street Unexpectedly
December 9, 2023
☀️Trending News
The meteoric rise of PENN ($NASDAQ:PENN) Entertainment’s ESPN Bet has caught Wall Street by surprise. It has quickly become one of the most successful gaming and betting products on the market, sending PENN Entertainment‘s stock soaring. PENN Entertainment is a multi-media entertainment company based in New York City.
With their ESPN Bet product, PENN Entertainment has leveraged their brand recognition and media connections to create a platform that stands out from the competition. The success of the product has helped drive increased investor interest in the company, leading to its recent stock surge.
Market Price
On Monday, the stock of PENN Entertainment, the parent company of the sports betting network ESPN Bet, had a massive surge in share price. Trading at $25.8 when it opened and closing at $26.2, the stock rose by 6.8% from its prior closing price of 24.6 – a significant jump that caught Wall Street by surprise. The sharp rise in PENN Entertainment’s stock has been credited to the tremendous success of ESPN Bet, which has grown in popularity since its launch two years ago.
The network’s large user base and increased viewership have drawn in a vast amount of users and investors, making PENN Entertainment a formidable presence in the gaming industry. With its stock rising to monstrous success, PENN Entertainment has been gaining a lot of attention from both investors and mainstream media alike. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Penn Entertainment. More…
| Total Revenues | Net Income | Net Margin |
| 6.55k | -111.2 | 2.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Penn Entertainment. More…
| Operations | Investing | Financing |
| 765.5 | -258.6 | -853 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Penn Entertainment. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 17.03k | 12.82k | 27.88 |
Key Ratios Snapshot
Some of the financial key ratios for Penn Entertainment are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.0% | 43.4% | 7.8% |
| FCF Margin | ROE | ROA |
| 7.3% | 7.6% | 1.9% |
Analysis – Penn Entertainment Intrinsic Value
At GoodWhale, we have conducted an extensive analysis of PENN ENTERTAINMENT‘s wellbeing. After careful consideration, we have determined that the fair value of PENN ENTERTAINMENT share is around $63.6. This figure is calculated using our proprietary Valuation Line. Interestingly, the current market value of PENN ENTERTAINMENT stock is only $26.2 – a whopping 58.8% below the fair value. This implies that the stock is undervalued and presents a great opportunity for potential investors. More…
Peers
The company has its headquarters in Wyomissing, Pennsylvania. Penn National Gaming Inc operates in the following segments: Gaming, Racing, and Hospitality. The company operates gaming facilities in Pennsylvania, Ohio, Louisiana, Illinois, Mississippi, and Maryland. The company was founded in 1969 and it employs around 26,000 people. Penn National Gaming Inc’s main competitors are DraftKings Inc, Caesars Entertainment Inc, and Boyd Gaming Corp. These companies are all gaming companies that operate in the United States.
– DraftKings Inc ($NASDAQ:DKNG)
DraftKings Inc is a digital sports entertainment and gaming company. It operates through two segments, Digital Sports and Gaming Platform, and Media Platform. The company was founded in 2012 and is headquartered in Boston, Massachusetts.
DraftKings Inc’s market cap is 5.93B as of 2022. The company has a Return on Equity of -105.71%.
DraftKings Inc operates a digital sports entertainment and gaming platform. The company offers daily fantasy sports, sports betting, and online gaming products. DraftKings Inc also operates a media platform that provides content and data products.
– Caesars Entertainment Inc ($NASDAQ:CZR)
Caesars Entertainment Inc is a gaming company that owns and operates casinos and resorts. As of 2022, the company has a market capitalization of 8.49 billion dollars and a return on equity of 19.66%. The company’s casinos are located in the United States, Canada, the United Kingdom, and Macau. The company’s resorts offer a variety of gaming, lodging, dining, entertainment, and retail options.
– Boyd Gaming Corp ($NYSE:BYD)
Boyd Gaming Corporation is an American gaming and hospitality company based in Las Vegas, Nevada. The company continues to be run by the Boyd family under the management of Sam Boyd, who founded the company in 1975. The company owns and operates 22 gaming properties in seven states. Boyd Gaming is the largest operator of casinos in Louisiana.
The company’s market cap is 5.71B as of 2022 and its ROE is 35.86%. The company operates 22 gaming properties in seven states and is the largest operator of casinos in Louisiana.
Summary
Penn Entertainment, an online gaming and sports betting company, has seen a massive jump in its stock prices after launching its new betting platform. Analysts believe that the stock’s impressive performance is driven by factors such as strong customer demand and favorable regulatory developments. The company has also seen increased investor enthusiasm, with investors believing in the potential of the company’s new venture.
This has led to a surge in share price, which is expected to continue for the foreseeable future. Investors should consider Penn Entertainment as an attractive option for investing, with analysts expecting it to have a promising future ahead.
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