Light & Wonder’s DCF Stock Analysis

Here’s my assumptions for $LNW ( ▼ 14.35% ) :

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 4.011%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 5%

Historical Data

Revenue growth in the last 10 years (CAGR): 1.46%

Earnings growth in the last 10 years (CAGR): / (From -1.394B to +336M)

Unlevered Free Cash Flow growth in the last 10 years (CAGR): -0.76%

Future Assumptions

End of Year FCF growth: 2%

Growth until end of 2026: 3%

Growth until end of 2034: 3%

Perpetual growth: 2.5%

Net Debt: 3.819B

Outstanding Stock Options Present Value Assumption: $0.101B

Restricted Stock Units Present Value Assumption: $0.196B

Stock Valuation based on these assumptions: $110

Last update 07/02/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Light & Wonder (LNW) and I don’t plan to add a position in the coming days.