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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Dave & Buster's Entertainment's Degree of Operating Leverage for the quarter that ended in Apr. 2026 was 75.81. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Dave & Buster's Entertainment's Degree of Operating Leverage or its related term are showing as below:
PLAY's Degree of Operating Leverage is ranked worse than 95.52% of 983
companies
in the Media - Diversified industry
Industry Median: 0.94
vs PLAY: 75.81
Dave & Buster's Entertainment (NAS:PLAY) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Dave & Buster's Entertainment Degree of Operating Leverage Related Terms
Dave & Buster's Entertainment Degree of Operating Leverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Dave & Buster's Entertainment Degree of Operating Leverage Chart
PLAY vs AENT, STRZ, AMCX: Degree of Operating Leverage Comparison
For the Entertainment subindustry, Dave & Buster's Entertainment's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Dave & Buster's Entertainment Degree of Operating Leverage vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Dave & Buster's Entertainment's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Dave & Buster's Entertainment's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 75.81 mean?
Dave & Buster's Entertainment (PLAY) has a Degree of Operating Leverage of 75.81 as of Apr. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Dave & Buster's Entertainment and its competitors. According to the industry distribution chart, Dave & Buster's Entertainment ranks #939 out of 983 companies in the Media - Diversified industry, placing it in the top 95.5%.
Is Dave & Buster's Entertainment's Degree of Operating Leverage too high?
Dave & Buster's Entertainment's current Degree of Operating Leverage is 75.81. The Media - Diversified industry median Degree of Operating Leverage is 0.94. Dave & Buster's Entertainment's value of 75.81 is 7964.9% above this industry median. Based on the distribution chart, Dave & Buster's Entertainment ranks #939 out of 983 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Dave & Buster's Entertainment has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Dave & Buster's Entertainment's Degree of Operating Leverage compare to AENT and STRZ?
According to the Media - Diversified industry distribution chart, Dave & Buster's Entertainment ranks #939 out of 983 companies for Degree of Operating Leverage. This places Dave & Buster's Entertainment in the lower half of its industry. The industry median Degree of Operating Leverage is 0.94. Dave & Buster's Entertainment's value of 75.81 is 7964.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Media - Diversified company?
The median Degree of Operating Leverage among Media - Diversified companies is 0.94, based on 983 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dave & Buster's Entertainment's current Degree of Operating Leverage of 75.81 is 7964.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Dave & Buster's Entertainment and its competitors. For the Media - Diversified industry, the median Degree of Operating Leverage is 0.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dave & Buster's Entertainment's current Degree of Operating Leverage is 75.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dave & Buster's Entertainment stock overvalued right now?
Based on GuruFocus' analysis, Dave & Buster's Entertainment (PLAY) is currently considered Possible Value Trap. The stock's GF Value™ is $35.80, compared to a current price of $10.21 — trading 71.5% below its estimated fair value. The current Degree of Operating Leverage is 75.81 and 7964.9% above the Media - Diversified industry median of 0.94. Dave & Buster's Entertainment's overall GF Score™ is 64/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Dave & Buster's Entertainment (PLAY), the current Degree of Operating Leverage is 75.81 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Dave & Buster's Entertainment (PLAY) Overvalued in 2026?
Based on GuruFocus' analysis, Dave & Buster's Entertainment stock appears to be undervalued.
The current stock price of $10.21 is trading 71.5% below its estimated GF Value™ of $35.80.
GuruFocus considers Dave & Buster's Entertainment to be Possible Value Trap.
Key valuation signals for PLAY:
Degree of Operating Leverage: 75.81
GF Value™: $35.80 vs. price of $10.21 (71.5% below fair value)
Industry Position: 7964.9% above the Media - Diversified median (#939 of 983)
No single metric tells the full story. See the PLAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dave & Buster's Entertainment Inc is an owner and operator of entertainment and dining venues in North America that offer experiences for both adults and families under the Dave & Buster's and Main Event brands. The company combines various forms of entertainment, including games, bowling, and watching live sports and other televised events, with a full menu of entrees and appetizers and a selection of alcoholic and non alcoholic beverages, all in one location. Its concept focuses on providing customers the opportunity to Eat, Drink, Play, and Watch, appealing to a balanced mix of adults, families, and teenagers. The company also operates internationally in the early stage as a franchisor of the Dave & Buster's brand.
64GF Score
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