The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Light & Wonder Pretax Margin % Related Terms
Light & Wonder Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Light & Wonder's Pretax Margin % can be seen below:
* 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.
LNWO vs CHDN, SGHC, RSI: Pretax Margin % Comparison
For the Gambling subindustry, Light & Wonder's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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.
Light & Wonder Pretax Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Light & Wonder's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Light & Wonder's Pretax Margin % 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.
Light & Wonder (LNWO) has a Pretax Margin % of 7.85% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Light & Wonder and its competitors. According to the industry distribution chart, Light & Wonder ranks #340 out of 840 companies in the Travel & Leisure industry, placing it in the top 40.5%.
Is Light & Wonder's Pretax Margin % too high?
Light & Wonder's current Pretax Margin % is 7.85%. The Travel & Leisure industry median Pretax Margin % is 6.04. Light & Wonder's value of 7.85% is 30% above this industry median. Based on the distribution chart, Light & Wonder ranks #340 out of 840 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Light & Wonder has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Light & Wonder's Pretax Margin % compare to CHDN and SGHC?
According to the Travel & Leisure industry distribution chart, Light & Wonder ranks #340 out of 840 companies for Pretax Margin %. This puts Light & Wonder in the upper half of its industry. The industry median Pretax Margin % is 6.04. Light & Wonder's value of 7.85% is 30% 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 Pretax Margin % for a Travel & Leisure company?
The median Pretax Margin % among Travel & Leisure companies is 6.04, based on 840 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Light & Wonder's current Pretax Margin % of 7.85% is 30% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Light & Wonder and its competitors. For the Travel & Leisure industry, the median Pretax Margin % is 6.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Light & Wonder's current Pretax Margin % is 7.85%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Light & Wonder stock overvalued right now?
Based on GuruFocus' analysis, Light & Wonder (LNWO) is currently considered Possible Value Trap. The stock's GF Value™ is $111.79, compared to a current price of $74.92 — trading 33% below its estimated fair value. The current Pretax Margin % is 7.85% and 30% above the Travel & Leisure industry median of 6.04. Light & Wonder's overall GF Score™ is 76/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Light & Wonder (LNWO), the current Pretax Margin % is 7.85% as of Mar. 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 Light & Wonder (LNWO) Overvalued in 2026?
Based on GuruFocus' analysis, Light & Wonder stock appears to be undervalued.
The current stock price of $74.92 is trading 33% below its estimated GF Value™ of $111.79.
GuruFocus considers Light & Wonder to be Possible Value Trap.
Key valuation signals for LNWO:
Pretax Margin %: 7.85%
GF Value™: $111.79 vs. price of $74.92 (33% below fair value)
Industry Position: 30% above the Travel & Leisure median (#340 of 840)
No single metric tells the full story. See the LNWO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Light & Wonder is principally an electronic gaming machine manufacturer, selling machines to pubs, clubs, and casinos. The firm is licensed in most jurisdictions allowing gambling globally. Light & Wonder is one of the three largest players in the space along with International Game Technology and Aristocrat Leisure. SciPlay, about one fourth of revenue, develops and distributes casual mobile games, principally in the social casino niche. The more nascent iGaming business sits between these two businesses, providing digital content and capabilities to real-money gaming providers.
76GF Score
Get the complete analysis for LNWO
Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LNWO has been successfully added to your 
