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 13.91 is considered Undervalued compared with the five-year average of 28.80. The fair price of Light & Wonder Inc (LNW) is between 197.18 to 407.70 according to relative valuation methord. Compared to the current price of 88.84 USD , Light & Wonder Inc is Undervalued By 54.94%.
Relative Value
Fair Zone
197.18-407.70
Current Price：88.84
54.94%
Undervalued
13.91
PE
1Y
3Y
5Y
Trailing
Forward
7.24
EV/EBITDA
Light & Wonder Inc. (LNW) has a current EV/EBITDA of 7.24. The 5-year average EV/EBITDA is 10.66. The thresholds are as follows: Strongly Undervalued below 4.45, Undervalued between 4.45 and 7.55, Fairly Valued between 13.77 and 7.55, Overvalued between 13.77 and 16.87, and Strongly Overvalued above 16.87. The current Forward EV/EBITDA of 7.24 falls within the Undervalued range.
11.60
EV/EBIT
Light & Wonder Inc. (LNW) has a current EV/EBIT of 11.60. The 5-year average EV/EBIT is 22.99. The thresholds are as follows: Strongly Undervalued below -4.97, Undervalued between -4.97 and 9.01, Fairly Valued between 36.97 and 9.01, Overvalued between 36.97 and 50.95, and Strongly Overvalued above 50.95. The current Forward EV/EBIT of 11.60 falls within the Historic Trend Line -Fairly Valued range.
86.22
PS
Light & Wonder Inc. (LNW) has a current PS of 86.22. The 5-year average PS is 2.99. The thresholds are as follows: Strongly Undervalued below -12.10, Undervalued between -12.10 and -4.56, Fairly Valued between 10.53 and -4.56, Overvalued between 10.53 and 18.07, and Strongly Overvalued above 18.07. The current Forward PS of 86.22 falls within the Strongly Overvalued range.
7.10
P/OCF
Light & Wonder Inc. (LNW) has a current P/OCF of 7.10. The 5-year average P/OCF is 8.41. The thresholds are as follows: Strongly Undervalued below -8.55, Undervalued between -8.55 and -0.07, Fairly Valued between 16.89 and -0.07, Overvalued between 16.89 and 25.36, and Strongly Overvalued above 25.36. The current Forward P/OCF of 7.10 falls within the Historic Trend Line -Fairly Valued range.
10.94
P/FCF
Light & Wonder Inc. (LNW) has a current P/FCF of 10.94. The 5-year average P/FCF is 15.26. The thresholds are as follows: Strongly Undervalued below -20.75, Undervalued between -20.75 and -2.74, Fairly Valued between 33.27 and -2.74, Overvalued between 33.27 and 51.27, and Strongly Overvalued above 51.27. The current Forward P/FCF of 10.94 falls within the Historic Trend Line -Fairly Valued range.
Light & Wonder Inc (LNW) has a current Price-to-Book (P/B) ratio of 9.90. Compared to its 3-year average P/B ratio of 9.17 , the current P/B ratio is approximately 7.88% higher. Relative to its 5-year average P/B ratio of 5.15, the current P/B ratio is about 92.32% 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 0.48%, the current FCF yield is approximately -88.42% lower. Relative to its 5-year average FCF yield of 2.81% , the current FCF yield is about -98.03% lower.
9.90
P/B
Median3y
9.17
Median5y
5.15
0.06
FCF Yield
Median3y
0.48
Median5y
2.81
Competitors Valuation Multiple
The average P/S ratio for LNW's competitors is , providing a benchmark for relative valuation. Light & Wonder Inc Corp (LNW) exhibits a P/S ratio of , which is NaN% 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
Performance Decomposition
1Y
3Y
5Y
Market capitalization of LNW decreased by 0.19% 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.
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