* Note: Prices are in Million (M) USD.
Description:
VICI Properties is an experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including the world-renowned Caesars Palace.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $233 M
Debt : $17,838 M
EBITDA : $3,643 M
Net Debt (Debt - Cash): $17,605 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: 13.90
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 11 overlapping fiscal years (max 20).Average Free Cash Flow: $872 M
Average Revenue: $1,350 M
Revenue Converted To Free Cash Flow (%): 64.6%
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): $3,849 M
Revenue 4 Years Ago (2020-12-31): $1,226 M
Last 5 Years Average Revenue Growth: 43%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $1,048 M
Share Count 5 Years Ago (2020-12-31): $511 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): $2.45
Trailing 12-Month Earnings Per Share (EPS): $2.37
Average Earnings Per Share (EPS): $2.41
Dividend Per Share (DPS): $2
Payout Ratio: 72%
Dividend Yield: 5%
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 10 valid ROE years (max 20).Average ROE: 6.2%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $34
52-Week Low: $27
Threshold Price (15% Above 52-Week Low): $31
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $35,084 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 27 points to above VICI Properties Inc (VICI) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Growth Based PE
42.00 (>2× median)
• 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 7 Years Avg P/E (15.55)
× EPS ($2.41) = $37.48.
Last 7 Years Avg PE 15.55, Fair Value PE 15, Industry Based PE 20, Growth Based PE 42, RCFC Based PE 50, ROE Based PE 14.96, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 24.94. Value-Trades has assined P/E value 24.94. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.41.
The fair value of VICI Properties Inc (VICI) stock should be (24.94 x $2.41) = $60.11.
