Wynn Macau Valuation

Is 8WY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 8WY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 8WY (€0.7) is trading below our estimate of fair value (€1.03)

Significantly Below Fair Value: 8WY is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 8WY?

Key metric: As 8WY is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 8WY. This is calculated by dividing 8WY's market cap by their current earnings.
What is 8WY's PE Ratio?
PE Ratio11.4x
EarningsHK$2.68b
Market CapHK$30.52b

Price to Earnings Ratio vs Peers

How does 8WY's PE Ratio compare to its peers?

The above table shows the PE ratio for 8WY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.2x
TIMA ZEAL Network
20.4x-4.5%€959.4m
8x17.3%€4.3b
IFA LS Invest
6.3xn/a€283.7m
LTMC Lottomatica Group
54x35.3%€3.2b
8WY Wynn Macau
11.4x13.1%€30.5b

Price-To-Earnings vs Peers: 8WY is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (22.2x).


Price to Earnings Ratio vs Industry

How does 8WY's PE Ratio compare vs other companies in the European Hospitality Industry?

11 CompaniesPrice / EarningsEstimated GrowthMarket Cap
8WY 11.4xIndustry Avg. 17.1xNo. of Companies18PE01632486480+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 8WY is good value based on its Price-To-Earnings Ratio (11.4x) compared to the European Hospitality industry average (17.1x).


Price to Earnings Ratio vs Fair Ratio

What is 8WY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

8WY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.4x
Fair PE Ratio26.1x

Price-To-Earnings vs Fair Ratio: 8WY is good value based on its Price-To-Earnings Ratio (11.4x) compared to the estimated Fair Price-To-Earnings Ratio (26.1x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 8WY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.70
€0.97
+38.5%
12.7%€1.25€0.74n/a15
Dec ’25€0.70
€0.97
+39.5%
12.7%€1.25€0.74n/a15
Nov ’25€0.68
€1.01
+48.7%
10.5%€1.22€0.83n/a14
Oct ’25€0.73
€0.97
+32.8%
12.5%€1.18€0.71n/a14
Sep ’25€0.57
€0.97
+70.3%
12.8%€1.17€0.71n/a14
Aug ’25€0.64
€1.11
+74.3%
10.8%€1.29€0.86n/a14
Jul ’25€0.71
€1.19
+69.0%
7.5%€1.37€1.05n/a14
Jun ’25€0.83
€1.19
+43.4%
8.7%€1.36€1.02n/a14
May ’25€0.82
€1.11
+35.4%
8.2%€1.28€1.01n/a14
Apr ’25€0.80
€1.05
+31.1%
6.1%€1.13€0.90n/a13
Mar ’25€0.75
€1.05
+40.2%
7.1%€1.21€0.88n/a13
Feb ’25€0.70
€1.02
+45.2%
7.6%€1.14€0.87n/a13
Jan ’25€0.72
€1.14
+58.6%
37.9%€2.73€0.84n/a15
Dec ’24€0.65
€1.22
+86.6%
36.1%€2.75€0.99€0.7014
Nov ’24€0.81
€1.36
+68.3%
32.6%€2.86€1.09€0.6813
Oct ’24€0.88
€1.35
+53.2%
32.1%€2.82€1.10€0.7313
Sep ’24€0.88
€1.32
+50.2%
30.4%€2.77€1.07€0.5715
Aug ’24€0.91
€1.23
+35.6%
35.1%€2.71€0.60€0.6415
Jul ’24€0.83
€1.28
+53.7%
34.3%€2.76€0.61€0.7115
Jun ’24€0.76
€1.27
+66.7%
34.1%€2.80€0.62€0.8316
May ’24€1.01
€1.24
+22.6%
34.6%€2.74€0.60€0.8216
Apr ’24€0.88
€1.25
+43.3%
34.9%€2.79€0.62€0.8016
Mar ’24€1.00
€1.29
+29.7%
34.8%€2.84€0.63€0.7516
Feb ’24€1.04
€1.12
+7.0%
45.9%€2.77€0.49€0.7016
Jan ’24€1.01
€0.91
-10.4%
60.4%€2.88€0.51€0.7216
Dec ’23€0.78
€0.85
+9.7%
63.8%€2.88€0.51€0.6516

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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