Wynn Resorts (WYNN): Assessing Valuation After Fresh US-China Trade Tensions and Sector Volatility

Wynn Resorts (WYNN) traded lower following a sharp market reaction to new trade tensions between the US and China. This occurred after President Trump issued critical remarks and China tightened export controls on key minerals.

See our latest analysis for Wynn Resorts.

Even before this latest bout of trade tension-driven volatility, Wynn Resorts has shown impressive momentum, with a year-to-date share price return of over 43% and a 1-year total shareholder return of 15.6%. The stock’s near-term dip comes shortly after a strong 90-day rally and reflects shifting sentiment amid broader market uncertainties. Its three- and five-year total returns of 118% and 73% highlight resilience and growth potential beyond short-term swings.

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With Wynn Resorts demonstrating robust multi-year returns and outpacing analyst price targets, the question now is whether today’s pullback marks a true buying opportunity or if the market has already anticipated the company’s future growth.

Most Popular Narrative: 9.6% Undervalued

Wynn Resorts' most widely followed narrative suggests its shares are attractively valued compared to the last close price, as the fair value estimate stands higher. This has captured the attention of analysts and investors who are weighing new expansion opportunities and ongoing financial strength as key drivers.

The rapid emergence of a larger, affluent middle class in Asia and the Middle East is driving increased demand for luxury integrated resorts. This positions Wynn's properties, especially Macau and the soon-to-open Wynn Al Marjan Island, to capture outsized growth in international gaming and hospitality spend and may result in higher long-term revenue and EBITDA growth.

Read the complete narrative.

Curious about the secret behind this bullish outlook? The valuation rests on bold assumptions such as double-digit earnings growth, expanding profit margins, and a future earnings multiple above most industry peers. Want to see the precise targets propelling this figure? See what sets this fair value apart and why it captured consensus attention.

Result: Fair Value of $132.56 (UNDERVALUED)

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

However, heavy reliance on Macau and intensifying competition in core Asian markets could challenge Wynn Resorts' growth story if conditions or consumer trends shift unexpectedly.

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

Another View: SWS DCF Model Points to a Different Value

It's important to look at more than just analyst price targets. The SWS DCF model, which factors in future cash flows and discount rates, suggests Wynn Resorts' fair value could be much lower. This implies the stock may in fact be overvalued. So, which approach really tells the full story for investors?

Look into how the SWS DCF model arrives at its fair value.

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 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 a different perspective or prefer hands-on research, you can quickly shape your own view using the data. Just 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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