Wynn Resorts (WYNN): Assessing Valuation After Analyst Upgrades and UAE Expansion Progress

Wynn Resorts (WYNN) is making headlines after a wave of analyst upgrades highlighted growing optimism around its expansion into the UAE. The company’s investor event and progress update on Wynn Al Marjan Island are drawing particular attention.

See our latest analysis for Wynn Resorts.

Momentum around Wynn Resorts is picking up, with upbeat investor sentiment following construction milestones, luxury renovations in Las Vegas, and a recent analyst upgrade after more details surfaced on the high-stakes UAE project. The company’s 53.6% year-to-date share price return and robust 1-year total shareholder return of 37.7% reflect both short-term excitement and longer-term confidence in Wynn’s growth pipeline.

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With shares sitting just below recent analyst price targets and anticipation building around the UAE project, the key question is whether Wynn Resorts is still trading at a discount or if the market has already factored in its next growth phase.

Most Popular Narrative: 6.7% Undervalued

Wynn Resorts closed at $128.68, putting it below the widely followed narrative’s fair value estimate of $137.91. This sets the stage for an ongoing debate: is the market underpricing Wynn’s ambitious future?

The imminent launch of Wynn Al Marjan Island, with first-mover advantage and limited near-term competition in a potentially multi-billion-dollar new market, is a major forward catalyst that is currently underappreciated by investors and could drive a meaningful step change in both consolidated revenue and EBITDAR.

Read the complete narrative.

Want to unlock the math behind this bold target? Here’s a hint: the valuation rests on transformative earnings growth and improving profit margins, built on Wynn’s international leverage. Intrigued by the narrative’s key forecasts that back this premium? Dive deeper to see what’s fueling the optimism and whether the assumptions will truly hold up.

Result: Fair Value of $137.91 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent reliance on Macau and rising costs could still shake Wynn’s growth story if regulatory or economic headwinds intensify unexpectedly.

Find out about the key risks to this Wynn Resorts narrative.

Another Angle: PE Ratio Sends Mixed Signals

Looking at Wynn Resorts through the lens of the price-to-earnings ratio, the picture is a bit different. The stock trades at 26.3 times earnings, which is attractive compared to the average peer at 61x. However, it is higher than the US Hospitality sector average of 21.4x and above its fair ratio of 23.7x. This gap highlights some valuation risk if the market shifts toward more conservative multiples. So, is the PE premium justified, or is caution warranted?

See what the numbers say about this price — find out in our valuation breakdown.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Wynn Resorts for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 920 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Wynn Resorts Narrative

If you want to challenge the consensus view or dig into the numbers on your own terms, you can produce a fresh take in just a few minutes. Do it your way

A great starting point for your Wynn Resorts research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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