The author says the valuation of the Delaware casino and harness track operator is compelling at this time. The firm is trading at a nice discount to an estimate of its fair value, even after considering an appropriate margin of safety.
“Dover Downs has a good combination of strong free cash flow generation and manageable financial leverage. We expect the firms free cash flow margin to average about 5.6% in coming years.”
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via Could Dover Downs Have Valuation Upside To $8 Per Share? We Think So – Seeking Alpha.
