My valuation is derived from a DCF of the Australian business, plus the value of the stake in MCE (at current market values). That gets me to about $18/share. Obviously Macau gaming revenues represent the biggest risk to this valuation, but for me, given the margin of safety, its a risk worth taking. Not sure where you get $35 from.
EGP will compete with CWN in Sydney from 2019+, but I'd argue that Perth and Melbourne properties do not have direct competitors. You're not going to fly to Sydney to gamble at the Star instead of going to Crown are you?
CWN Price at posting:
$12.33 Sentiment: Buy Disclosure: Held
