DCF Tool

CNTY

Century Casinos Inc. – Casinos (except Casino Hotels)
Century Casinos, Inc. is a casino entertainment company. The Company owns and operates Century Casino & Hotels in Cripple Creek and Central City, Colorado, and in Edmonton, Alberta, Canada; the Century Casino in Cape Girardeau and Caruthersville, Missouri, and in St. Albert, Alberta, Canada; Mountaineer Casino, Racetrack & Resort in New Cumberland, West Virginia; the Century Mile Racetrack and Casino (“CMR”) in Edmonton, Alberta, Canada; and Century Bets! Inc. (“CBS”). CBS and CMR operate the pari-mutuel off-track horse betting networks in southern and northern Alberta, respectively. Through its Austrian subsidiary, Century Resorts Management GmbH (“CRM”), the Company holds a 66.6% ownership interest in Casinos Poland Ltd., the owner and operator of eight casinos throughout Poland; and a 75% ownership interest in Century Downs Racetrack and Casino in Calgary, Alberta, Canada. The Company operates four ship-based casinos. The Company, through CRM, also owns a 7.5% interest in, and provides consulting services to, Mendoza Central Entretenimientos S.A., a company that provides gaming-related services to Casino de Mendoza in Mendoza, Argentina. The Company continues to pursue other projects in various stages of development.
Analysis Results
Intrinsic Value $203.44
Latest Price $7.23
Relative Value 96% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 48.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 48.5%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 105 97.3
2023 157 133
2024 233 183
2025 346 251
2026 514 343
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 8210 million. This corresponds to a present value of 5070 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1010 million. Adding in the terminal value gives a total present value of 6080 million.

There are presently 29.9 million outstanding shares, so the intrinsic value per share is 203.44.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 140,680,000
Current Cash 107,821,000
Current Liabilities 60,433,000
Current Debt 3,996,000
Non-Cash Working Capital (NCWC) -23,578,000
Change in NCWC -5,473,000
EBIT 68,518,000
Tax Provision 6,371,000
Depreciation and Amortization 30,799,000
Capital Expenditure -10,012,000
Unlevered Free Cash Flow 68,324,231
Current Assets 94,622,000
Current Cash 63,413,000
Current Liabilities 60,163,000
Current Debt 10,849,000
Non-Cash Working Capital (NCWC) -18,105,000
Change in NCWC 10,535,000
EBIT 28,537,000
Tax Provision 4,848,000
Depreciation and Amortization 26,534,000
Capital Expenditure -10,705,000
Unlevered Free Cash Flow 54,901,000
Current Assets 79,366,000
Current Cash 54,754,000
Current Liabilities 56,570,000
Current Debt 3,318,000
Non-Cash Working Capital (NCWC) -28,640,000
Change in NCWC -5,501,000
EBIT 11,266,000
Tax Provision 4,174,000
Depreciation and Amortization 10,843,000
Capital Expenditure -24,038,000
Unlevered Free Cash Flow -7,430,000
Current Assets 54,974,000
Current Cash 45,575,000
Current Liabilities 50,020,000
Current Debt 17,482,000
Non-Cash Working Capital (NCWC) -23,139,000
Change in NCWC -4,042,000
EBIT 9,459,000
Tax Provision 1,917,000
Depreciation and Amortization 9,399,000
Capital Expenditure -56,774,000
Unlevered Free Cash Flow -45,019,438
Current Assets 84,321,000
Current Cash 74,677,000
Current Liabilities 34,438,000
Current Debt 5,697,000
Non-Cash Working Capital (NCWC) -19,097,000
Change in NCWC -3,183,000
EBIT 14,615,000
Tax Provision 4,560,000
Depreciation and Amortization 8,945,000
Capital Expenditure -11,127,000
Unlevered Free Cash Flow 3,897,466
Current Assets 45,948,000
Current Cash 38,837,000
Current Liabilities 28,608,000
Current Debt 5,583,000
Non-Cash Working Capital (NCWC) -15,914,000
Change in NCWC -1,911,000
EBIT 16,165,000
Tax Provision 1,787,000
Depreciation and Amortization 8,349,000
Capital Expenditure -7,104,000
Unlevered Free Cash Flow 13,647,278
Current Assets 34,540,000
Current Cash 29,366,000
Current Liabilities 23,300,000
Current Debt 4,123,000
Non-Cash Working Capital (NCWC) -14,003,000
Change in NCWC 3,431,000
EBIT 13,128,000
Tax Provision 1,835,000
Depreciation and Amortization 7,999,000
Capital Expenditure -18,875,000
Unlevered Free Cash Flow 4,112,808
Current Assets 30,163,000
Current Cash 24,741,000
Current Liabilities 28,128,000
Current Debt 5,272,000
Non-Cash Working Capital (NCWC) -17,434,000
Change in NCWC 160,000
EBIT 2,657,000
Tax Provision 1,507,000
Depreciation and Amortization 7,835,000
Capital Expenditure -16,097,000
Unlevered Free Cash Flow -6,952,000
Current Assets 32,360,000
Current Cash 27,348,000
Current Liabilities 26,801,000
Current Debt 4,195,000
Non-Cash Working Capital (NCWC) -17,594,000
Change in NCWC -6,683,000
EBIT 5,483,000
Tax Provision 1,294,000
Depreciation and Amortization 6,599,000
Capital Expenditure -4,746,000
Unlevered Free Cash Flow -309,817

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