Caesars (CZR) 2024 Valuation Model and Risk Framework

Caesars Entertainment (CZR): Valuation and Outlook
 
Model includes an OSB and iGaming primer, along with our CZR Valuation:
-In a soft landing, the company will likely generate a 15% free cash flow yield by 2025
-Management intends to buy back stock in the $40s after this year's capex
-Caesar's Palace app was launched in August 2023 and is already 50% of total i-gaming revenue at CZR (astronomical growth)
-TAM continues to grow and the company continues to invest in technology, while its cost structure will improve this year and next as ESPN savings are realized
-Company's OSB structural hold of 7.5% is still well below FanDuel at 13%
-Management intends to capture 10% market share by 2025 ($500mn EBITDA, even $300-400mn would be impressive and add to value vs current price)
 
Model and price target updated for CZR earnings and includes forecasts for brick & mortar and online revenues and margins.
 
This Caesars Entertainment (CZR) valuation model includes a detailed operating model with valuation, historical financials, projections, and segment build. Assumptions can easily be adjusted by the user.
 
Once you have downloaded the model, e-mail us for the associated memo for 2024.
 
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