By Rob Otman
Eldorado Resorts stock had a great day in the market on Monday April 16. Shares jumped 16.25% and closed the day at $41.5. They’re now trading 3.82% below their 52-week high of $43.15.
With today’s big gain, Eldorado Resorts now has a market cap of $4 billion. That makes it a mid-cap company.
The business operates in the casino services industry and employs 12,500 people. Its shares trade primarily on the NASDAQ stock exchange.
Eldorado Resorts has 77.24 million shares outstanding and 3.9 million traded hands for the day. That’s above the average 30-day volume of 733,392 shares.
Over the last five years, Eldorado Resorts revenue is up from zero. You can see the increase in annual revenue chart below…
In the last year alone, Eldorado Resorts revenue has grown by 65.03%. That’s a solid sign for Eldorado Resorts stock owners.
We like to invest in companies that grow their sales. A growing top line is a sign of a healthy business.
For now, Eldorado Resorts will continue to pull in revenue. So let’s take a closer look at the company’s total financial health. And the best way to do that is by looking at its balance sheet… Eldorado Resorts cash comes in at $153 million and the company’s debt is $2.2 billion…
Eldorado Resorts cash pile is smaller than its total debt. This is common for many companies. They can issue debt at a lower cost to take on new projects… but the debt to cash level is a bit high and is a concern for the business.
What is Eldorado Resorts Stock Worth?
To determine the value of Eldorado Resorts stock let’s look at a few key metrics…
Price-to-Earnings (P/E): This ratio comes in at 51.62 for Eldorado Resorts. That’s high. A high P/E ratio shows that investors are already expecting high earnings growth.
Price-to-Book (P/B): This ratio is a cornerstone for value investors. A lower number here indicates a better value play. And at 3.37, Eldorado Resorts looks reasonable… but P/B varies greatly based on the industry.
These two metrics are a great place to start when valuing a company… but your analysis should go much deeper…
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Source:: Investment You
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