Excerpt from an update (paid subscribers only) from Eagle Point Capital on International Game Technology, "IGT should generate around $1.9B of free cash flow over the next five years and pay down $2B of debt from the slot machine business transaction proceeds. I don’t know what valuation will trade at in five years so I use a range of 7-15% (a 6.7x – 14x multiple) to assess the impact of change in valuation multiple. As you can see, even in a scenario where we get no valuation multiple expansion, the returns are solid. If, once IGT is a pure-play lottery business and has demonstrated a year or two of clean financials, the market appreciates the value of the business model and assigns a multiple that is closer to fair value (10-15x), returns will likely exceed 20% per year." Dividend yield as of now around 4.5% .