LNW Valuation

Light & Wonder Inc

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80.560

+0.86(1.079%)1D

LNW Relative Valuation

LNW's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, LNW is overvalued; if below, it's undervalued.

Historical Valuation

Light & Wonder Inc (LNW) is now in the Undervalued zone, suggesting that its current forward PE ratio of 12.94 is considered Undervalued compared with the five-year average of 27.74. The fair price of Light & Wonder Inc (LNW) is between 105.69 to 326.65 according to relative valuation methord. Compared to the current price of 80.56 USD , Light & Wonder Inc is Undervalued By 23.78%.

Relative Value

Fair Zone

105.69-326.65

Current Price：80.56

23.78%

Undervalued

12.94

Trailing

Forward

7.02

EV/EBITDA

Light & Wonder Inc. (LNW) has a current EV/EBITDA of 7.02. The 5-year average EV/EBITDA is 10.67. The thresholds are as follows: Strongly Undervalued below 4.51, Undervalued between 4.51 and 7.59, Fairly Valued between 13.75 and 7.59, Overvalued between 13.75 and 16.83, and Strongly Overvalued above 16.83. The current Forward EV/EBITDA of 7.02 falls within the Undervalued range.

11.08

EV/EBIT

Light & Wonder Inc. (LNW) has a current EV/EBIT of 11.08. The 5-year average EV/EBIT is 23.06. The thresholds are as follows: Strongly Undervalued below -4.70, Undervalued between -4.70 and 9.18, Fairly Valued between 36.94 and 9.18, Overvalued between 36.94 and 50.83, and Strongly Overvalued above 50.83. The current Forward EV/EBIT of 11.08 falls within the Historic Trend Line -Fairly Valued range.

80.56

Light & Wonder Inc. (LNW) has a current PS of 80.56. The 5-year average PS is 2.75. The thresholds are as follows: Strongly Undervalued below -9.65, Undervalued between -9.65 and -3.45, Fairly Valued between 8.95 and -3.45, Overvalued between 8.95 and 15.15, and Strongly Overvalued above 15.15. The current Forward PS of 80.56 falls within the Strongly Overvalued range.

6.33

P/OCF

Light & Wonder Inc. (LNW) has a current P/OCF of 6.33. The 5-year average P/OCF is 8.38. The thresholds are as follows: Strongly Undervalued below -8.46, Undervalued between -8.46 and -0.04, Fairly Valued between 16.80 and -0.04, Overvalued between 16.80 and 25.22, and Strongly Overvalued above 25.22. The current Forward P/OCF of 6.33 falls within the Historic Trend Line -Fairly Valued range.

10.95

P/FCF

Light & Wonder Inc. (LNW) has a current P/FCF of 10.95. The 5-year average P/FCF is 15.28. The thresholds are as follows: Strongly Undervalued below -20.47, Undervalued between -20.47 and -2.60, Fairly Valued between 33.15 and -2.60, Overvalued between 33.15 and 51.02, and Strongly Overvalued above 51.02. The current Forward P/FCF of 10.95 falls within the Historic Trend Line -Fairly Valued range.

Light & Wonder Inc (LNW) has a current Price-to-Book (P/B) ratio of 9.25. Compared to its 3-year average P/B ratio of 9.08 , the current P/B ratio is approximately 1.82% higher. Relative to its 5-year average P/B ratio of 5.04, the current P/B ratio is about 83.62% higher. Light & Wonder Inc (LNW) has a Forward Free Cash Flow (FCF) yield of approximately 0.06%. Compared to its 3-year average FCF yield of 0.33%, the current FCF yield is approximately -82.09% lower. Relative to its 5-year average FCF yield of 2.88% , the current FCF yield is about -97.95% lower.

9.25

P/B

Median3y

9.08

Median5y

5.04

0.06

FCF Yield

Median3y

0.33

Median5y

2.88

Competitors Valuation Multiple

The average P/S ratio for LNW's competitors is 40.35, providing a benchmark for relative valuation. Light & Wonder Inc Corp (LNW) exhibits a P/S ratio of 80.56, which is 99.63% above the industry average. Given its robust revenue growth of 2.94%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Caesars Entertainment Inc

Rush Street Interactive Inc

MGM Resorts International

31.72

1.90%

8.93B

Performance Decomposition

Market capitalization of LNW decreased by 15.24% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 7.83 to 13.56.

The secondary factor is the Revenue Growth, contributed 2.94%to the performance.

Overall, the performance of LNW in the past 1 year is driven by Margin Expansion. Which is more sustainable.

2.94%

817.00M → 841.00M

Revenue Growth

73.18%

7.83 → 13.56

Margin Expansion

-91.36%

202.98 → 17.54

P/E Change

-15.24%