Why Gaming and Leisure Properties Is On Investors’ Radar
Gaming and Leisure Properties (GLPI) has drawn attention after a recent stretch of steady share performance, with modest gains over the past month and past 3 months prompting a closer look at its fundamentals.
See our latest analysis for Gaming and Leisure Properties.
At a share price of US$46.20, Gaming and Leisure Properties has seen steady momentum build, with a 30 day share price return of 2.51% and a 5 year total shareholder return of 45.73% framing recent moves within a longer period of compounding gains.
If this steady REIT performance has you looking for other income oriented ideas, it could be a good moment to widen your search with our 23 top founder-led companies.
With GLPI trading at US$46.20 and showing an indicated intrinsic discount alongside income focused appeal, it is worth asking: are investors looking at an undervalued REIT here, or is the market already pricing in future growth?
Most Popular Narrative: 14.6% Undervalued
Against the last close of US$46.20, the most followed narrative points to a higher fair value for Gaming and Leisure Properties, built on specific earnings and cash flow assumptions that extend several years out.
The ongoing development and deployment of significant investment capital into marquee projects, such as the Chicago Bally’s, The Belle conversion, and continued land-based upgrades, should meaningfully boost long-term rental revenue streams and underlying tenant health, ultimately driving steady funds from operations and net income growth.
Read the complete narrative. Read the complete narrative.
Curious what kind of revenue path and margin profile are baked into that higher fair value, and how a single earnings multiple ties it all together over time?
The narrative brings these assumptions together into a fair value estimate of US$54.07 for GLPI, using a 7.73% discount rate and a future earnings profile that includes higher profit margins, expanding rental income and a specific price multiple applied to projected 2028 earnings.
Result: Fair Value of US$54.07 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this depends on key risks, including Bally’s credit profile and project exposure, as well as pressure from digital gaming that could challenge long term rental assumptions.
Find out about the key risks to this Gaming and Leisure Properties narrative.
Build Your Own Gaming and Leisure Properties Narrative
If parts of this story do not quite line up with your view, or you simply want to test your own assumptions using the same data, you can build a personalised take on GLPI in just a few minutes and see how it stacks up against the consensus by choosing to Do it your way.
A great starting point for your Gaming and Leisure Properties research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
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If GLPI has sparked your interest, do not stop here. Use the same data driven tools to quickly spot other opportunities that might fit your goals.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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