Caesars Entertainment Inc (CZR) is undervalued and Red Rock Resorts Inc (RRR) is slightly undervalued.
Against our estimates of intrinsic value, CZR trades at the wider discount: a margin of safety of +80%, against +8% for RRR.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 6.8% (average of 2 methods) values the shares at $145.00; the price of $29.62 is 80% below that value, and 85% of that value comes from beyond year five.
Leak Score 56/100 on 2 of 12 signals
Discounting its cash flows at 8.9% (average of 3 methods) values the shares at $52.93; the price of $48.76 is 8% below that value, and 77% of that value comes from beyond year five.
Leak Score 0/100 on 3 of 12 signals
| Metric | CZR | RRR |
|---|---|---|
| Verdict | Undervalued | Slightly undervalued |
| Price | $29.62 | $48.76 |
| Intrinsic value | $145.00 | $52.93 |
| Margin of safety | +80% | +8% |
| Leak Score | 56/100 (2/12) | 0/100 (3/12) |
| Market cap | $6.0B | $5.1B |
| Revenue growth, 5 years | 25.9% | 11.2% |
| Operating margin | 17.7% | 28.6% |
| Net margin | -4.0% | 8.4% |
| Return on equity | -12.8% | 90.2% |
| Debt to equity | 7.36 | 21.25 |
| P/E | — | 17.3x |
| Forward P/E | 132.3x | 16.7x |
| P/B | 1.8x | 16.9x |
| Dividend yield | — | 3.7% |