Dave & Buster’s Enter (PLAY:NAS) Fundamental Valuation Report

Fundamental Valuation Report

Dave & Buster’s Enter(PLAY:NAS)

Consumer Cyclical:Restaurants

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$52.01 (USD) 10/04/2019

Weighted Valuation
$59.10 (USD)

Overall Rating
Undervalued by 13.6%

Valuation Models Analyst Consensus: $64.00 (USD)
(in order of importance) Adjusted Book Value: $51.76 (USD)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Fairly valued on an Asset Valuation

Company Overview (PLAY:NAS USD)

Price 52.01
Range 51.33 – 52.88
52 week 38.05 – 66.22
Open 52.74
Vol / Avg. 863211/1.15M
Mkt cap 1.9B
P/E 17.75
Div/yield 0.30/0.01
EPS 2.93
Shares 36.6M
Beta 0.00

Company Description

Dave & Buster’s Entertainment Inc owns and operates nearly a hundred entertainment and dining establishments in the United States where customers can eat, drink, play games, and watch televised sports. The play division includes amusement, simulation, and video games, accounts for more than half of total company revenue. Food and beverage accounts for the rest. About one third of food and beverage revenue comes from alcoholic drinks, with the rest coming from food and nonalcoholic beverages.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for PLAY:NAS

Using a discounted cash flow model we generated an intrinsic value of $146.52 (USD) for PLAY:NAS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

PLAY:NAS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $146.52 1% 5% 1% 5%
WACC (or Ke) 8.84 $178.64 $123.79
Terminal Growth Rate 3.00 $126.32 $175.07
Tax Rate 0.21 $154.77 $138.26
Cash Flow 385,006,035 $140.05 $152.99
Capital Expenditures 6,510,800 $146.62 $146.42
Long Term Debt 289,774,000 $146.91 $146.12

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $71.78 (USD) for PLAY:NAS. We also generated a valuation of $87.68 (USD) using other metrics and comparables.
The comparable companies were Aramark (ARMK:NYS), Cheesecake Factory (CAKE:NAS), Cracker Barrel Old (CBRL:NAS), Dunkin Brands Group (DNKN:NAS) and Jack In The Box (JACK:NAS).

Company PLAY:NAS End Date Value
Earnings/Share $2.93 (USD)
Book Value/Share $11.62 (USD)
Sales/Share $30.50 (USD)
Cash Flow/Share $7.40 (USD)
EBITDA/Share $6.97 (USD)
Price Based on Comps Adjustment Factor (%)
$59.30 (USD) 22.5
$47.67 (USD) -29.0
$79.38 (USD) -20.0
$105.89 (USD) -1.4
$83.53 (USD) 1.5
16.46 PE Ratio 20.24 14.28 22.86 17.84 27.71 18.51
4.29 PB Ratio 4.10 2.26 3.87 6.18 0.00 0.00
1.64 PS Ratio 2.60 0.47 0.97 1.26 7.71 2.61
6.74 PCF Ratio 15.63 6.51 7.76 10.43 23.72 29.75
7.89 EV to EBITDA 11.99 10.02 8.99 10.69 18.87 11.36


Using a multiples approach we generated a valuation of  $66.84 (USD) for PLAY:NAS

Company PLAY:NAS End Date Value
Earnings/Share $2.93 (USD)
Book Value/Share $11.62 (USD)
Sales/Share $30.50 (USD)
Cash Flow/Share $7.40 (USD)
EBITDA/Share $6.97 (USD)
Price Based on Comps Adjustment Factor
$74.85 (USD) 0
$58.20 (USD) 0
$57.86 (USD) 0
$68.98 (USD) 0
$74.28 (USD) 0
Ratios Ratio Average
PE Ratio 25.55
PB Ratio 5.01
PS Ratio 1.90
PCF Ratio 9.32
EV to EBITDA 10.66

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  PLAY:NAS for the last 4 years was  5.01

We ran the Adjusted Book Value for  PLAY:NAS and generated a book value of  $10.34 (USD)
By multiplying these we get an adjusted valuation of  $51.76 (USD)

Analyst Data

In the Stockcalc database there are 1 analysts that provide a valuation for PLAY:NAS. The 1 analysts have a concensus valuation for PLAY:NAS for 2020 of $64.00 (USD).

PLAY:NAS Dave & Buster’s Enter

No analyst recommendation
Current Price: not available

No analyst consensus

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.
The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).
The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.
With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.
If we have Analyst coverage for the company we use the consensus target price here.

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