Churchill Downs Incorporated

CHDN ·Consumer Cyclical, Leisure, United States
Valuation › AI Valuation

AI Valuation

AI-generated fair value estimate for this company.

AI Fair Value $106.09
Market Price $77.57
Undervalued By 26.9%

Method: 10-year FCFE DCF: $567.9M trailing twelve-month free cash flow base (currently depressed by heavy historical-racing-machine and gaming-facility capex); 4% annual FCF growth for years 1-5; 3% for years 6-10; 11% cost-of-equity discount rate reflecting elevated ~$4.86B debt load; 2.5% terminal growth; 69.70M shares outstanding.

Reasoning: Churchill Downs carries high leverage from its gaming expansion, so FCF growth is tempered and a higher discount rate is used to reflect equity risk; FCF is expected to recover as expansion capex moderates.