* Note: Prices are in Million (M) USD.
Description:
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $604 M
Debt : $7,197 M
EBITDA : $1,369 M
Net Debt (Debt - Cash): $6,593 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Real estate
Industry: Reit - diversified
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 14.79
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 14 overlapping fiscal years (max 20).Average Free Cash Flow: $512 M
Average Revenue: $897 M
Revenue Converted To Free Cash Flow (%): 57.1%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $1,532 M
Revenue 4 Years Ago (2020-12-31): $1,153 M
Last 5 Years Average Revenue Growth: 7%
Since Revenue Growth is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $274 M
Share Count 5 Years Ago (2020-12-31): $220 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $3.23
Trailing 12-Month Earnings Per Share (EPS): $3.26
Average Earnings Per Share (EPS): $3.25
Dividend Per Share (DPS): $3
Payout Ratio: 94%
Dividend Yield: 7%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 12 valid ROE years (max 20).Average ROE: 15.6%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $48
52-Week Low: $44
Threshold Price (15% Above 52-Week Low): $50
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $13,434 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 31 points to above Gaming & Leisure Properties (GLPI) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• RCFC Based PE
50.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 11 Years Avg P/E (20.20)
× EPS ($3.25) = $65.55.
Last 11 Years Avg PE 20.2, Fair Value PE 15, Industry Based PE 20, Growth Based PE 6, RCFC Based PE 50, ROE Based PE 22.45, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 21.53. Value-Trades has assined P/E value 21.53. Since an average (Current Year EPS + Next Year EPS) earning per share is $3.245.
The fair value of Gaming & Leisure Properties (GLPI) stock should be (21.53 x $3.245) = $69.88.
