As of May 24, 2025, Golden Nugget Online Gaming Inc's estimated intrinsic value ranges from $2.37 to $32.61 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Dividend Discount Model (Multi-Stage) | $32.61 | +464.2% |
| Dividend Discount Model (Stable) | $16.04 | +177.6% |
| Earnings Power Value | $2.37 | -59.1% |
Is Golden Nugget Online Gaming Inc (GNOG) undervalued or overvalued?
With the current market price at $5.78, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Golden Nugget Online Gaming Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 1.07 | 1.09 |
| Cost of equity | 7.7% | 9.9% |
| Cost of debt | 7.0% | 7.0% |
| Tax rate | 27.0% | 27.0% |
| Debt/Equity ratio | 0.3 | 0.3 |
| After-tax WACC | 7.1% | 8.8% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $16M |
| Discount Rate (WACC) | 8.8% - 7.1% |
| Enterprise Value | $186M - $231M |
| Net Debt | $23M |
| Equity Value | $164M - $208M |
| Outstanding Shares | 79M |
| Fair Value | $2 - $3 |
| Selected Fair Value | $2.37 |
| Metric | Value |
|---|---|
| Market Capitalization | $454M |
| Enterprise Value | $454M |
| Trailing P/E | 0.00 |
| Forward P/E | 6.56 |
| Trailing EV/EBITDA | 10.15 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.30 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Dividend Discount Model (Multi-Stage) | 44% | $6.52 |
| Dividend Discount Model (Stable) | 33% | $2.41 |
| Earnings Power Value | 22% | $0.24 |
| Weighted Average | 100% | $20.37 |
Based on our comprehensive valuation analysis, Golden Nugget Online Gaming Inc's weighted average intrinsic value is $20.37, which is approximately 252.4% above the current market price of $5.78.
Key investment considerations:
Given these factors, we believe Golden Nugget Online Gaming Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.