Caesars Entertainment (CZR) is back in focus after a wave of new analyst commentary sparked by its recent Q2 2025 earnings. The update revealed solid digital segment growth; however, analysts remain divided given ongoing challenges in the core Las Vegas market.

Despite a wave of upbeat digital growth news, Caesars Entertainment’s share price tells a more cautionary tale, dropping over 15% in the past month, with its total shareholder return down a striking 52.5% over the past year. Momentum has clearly faded as mixed analyst sentiment and Las Vegas headwinds continue to weigh on the stock’s outlook.

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With shares now trading at a steep discount to analyst price targets, but ongoing uncertainty weighing on sentiment, the big question remains: is Caesars Entertainment undervalued, or is the market already pricing in the future growth?

Most Popular Narrative: 46.5% Undervalued

Caesars Entertainment is trading at a steep discount to the narrative fair value estimate of $40.12 per share versus the last close of $21.45. This presents a striking gap that centers on future digital expansion and margin upgrades.

Enhanced loyalty program investments and analytics-driven targeted marketing, leveraging Caesars Rewards across all channels, are increasing cross-property play and customer retention. These efforts are expected to augment repeat business and customer lifetime value, supporting higher long-term net margins and stable revenue growth.

Want to crack the formula behind that powerful valuation? The full narrative uncovers the surprising levers designed to reinvent Caesars’ earnings and profit margins. The real shocker is that this blueprint relies on future profit multiples not often seen in the gaming sector. Dive deeper to uncover the bold projections shaping these price targets.

Result: Fair Value of $40.12 (UNDERVALUED)

However, risks remain, especially if traditional Las Vegas demand continues to soften or if rising promotional costs begin to erode profit margins again.

Build Your Own Caesars Entertainment Narrative

If this story leaves you unconvinced or you'd rather chart your own path, you can piece together your own view in just a few minutes. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Caesars Entertainment.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.