Aristocrat Leisure (ALL.AX)
Consumer · ASX · Australia
Fundamentals
Valuation and ratings
Aristocrat Leisure trades at A$61.57, which is 60% above the A$24.70 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 76 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 25.9 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Aristocrat Leisure
Aristocrat Leisure Limited, together with its subsidiaries, operates as a gaming content and technology company in Australia and internationally. It operates through three segments: Aristocrat Gaming, Product Madness, and Aristocrat Interactive. The company designs, develops, assembles, distributes, sells, and services gaming content, platforms, and systems, including electronic gaming machines, casino management systems, and iLottery and free-to-play mobile games. It also offers product madness, a publisher in the social casino genre of free-to-play mobile games; aristocrat gaming, a regulated land-based gaming; and Aristocrat Interactive, a regulated online real money gaming. Aristocrat Leisure Limited was founded in 1950 and is headquartered in North Ryde, Australia.
ALL.AX passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Aristocrat Leisure (ALL.AX) undervalued?
Against our discounted cash flow estimate of A$24.70, ALL.AX at A$61.57 is 60% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is ALL.AX's P/E ratio?
ALL.AX trades at 25.9 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.