- Churchill Downs (CHDN) currently trades above corporate but below recent averages relative to Uniform earnings, with a 33.3x Uniform P/E (Fwd. V/E’).
- At these levels, markets are pricing in expectations for Uniform ROA to reach new peaks, accompanied by 5% Uniform asset growth.
- Similarly, analysts expect Uniform ROA to improve to 21% by 2023, accompanied by 13% Uniform asset growth.
- If sustained going forward, these levels would imply a stock price closer to $265, representing approximately 31% equity upside for the firm.
- Moreover, the firm’s most recent earnings call suggests management may have concerns about online betting, growth opportunities, and off-track betting.
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