Market Pulse50Neutral

Dave & Buster's Entertainment, Inc.Opportunity Rank #134(PLAY) Intrinsic Value & DCF Analysis (2026)

Current Price

$11.81

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$11.81
Price
$351.67
Intrinsic Value
Undervalued by 2878%MOS: $281.34

Fundamental Score

62/100
Neutral

Weighted across 6 signals

Narrative Score

51/100
Weak

No change vs previous

The intrinsic value of Dave & Buster's Entertainment, Inc. (PLAY) is estimated at $351.67 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $11.81, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 6.96% long-term growth rate and a 10.06% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Dave & Buster's Entertainment, Inc. (PLAY) is estimated at $351.67 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $11.81, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 6.96% long-term growth rate and a 10.06% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$351.67
▲ 2877.73% upside
20% margin of safety: $281.34
Years: 10Growth Rate: 6.96%
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Capital Efficiency

Average Quarterly ROIC
1.97%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

62/100
NeutralWeighted across 6 signals
DCF Discount
2877.7% discount to price
100
FCF Yield
192.6% trailing FCF yield
100
ROIC vs WACC
ROIC 2.0% vs WACC 11.0% (0.2x)
9
Net Debt / FCF
2.0x net debt to FCF
31
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
8.8% 5Y FCF CAGR
69
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Net Debt / FCF.

Narrative Details

51/100
Weak
Vs 6-Month Baseline:High (81st pct)Weighted across 3 recent drivers
Trend: StableConfidence: 55%Updated: 1h ago
Sources: 6 (4 News · 2 Analyst)
Drivers(last 30 days)
3 news sentiment+0.1
Margin pressure+0.0
2 analyst reiterations0.0

Investment Coach

Updated 15h ago
BUYConfidence: 54%
Thesis
Dave & Buster's Entertainment, Inc. (PLAY) is significantly undervalued with an estimated fair value nearly 2980% above its current price, supported by strong free cash flow yield and constructive fundamentals. Despite trailing returns relative to its cost of capital, the company's stable narrative and healthy buybacks present a compelling buy opportunity.
Key Risk
The key risk is the company's return on invested capital (ROIC) remaining substantially below its weighted average cost of capital (WACC), which could undermine value creation.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 6.96%5 Year CAGR: 87.78%

Free Cash Flow (in millions)

TTM2025202420232022202120202019201820172016201520142013201220112010
$789$843$694$679$375$34$517$554$485$412$350$216$216$161$146$72$107

How Intrinziq Estimates Fair Value

Intrinziq estimates Dave & Buster's Entertainment, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Dave & Buster's Entertainment, Inc.Communication Services

Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families in North America. Its venues offer a menu of entrées and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events. The company operates its venues under the Dave & Buster's name. As of January 30, 2022, it owned and operated 144 stores located in 40 states, Puerto Rico, and one Canadian Province. The company was founded in 1982 and is headquartered in Coppell, Texas.