Wynn Resorts (WYNN): Exploring Valuation After Recent Share Price Momentum

Wynn Resorts (WYNN) has delivered a 10% gain over the past 3 months, building on steady momentum despite broader market shifts. For investors tracking leisure and hospitality stocks, the recent performance presents an interesting entry point to consider.

See our latest analysis for Wynn Resorts.

Looking at the bigger picture, Wynn Resorts’ 41.99% share price return year-to-date signals strong momentum after a standout run over the past 12 months. While the pace has cooled recently, the company’s three-year total shareholder return of 72.53% and ongoing recovery in tourism continue to support a positive long-term outlook.

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But with shares recently slipping from their highs, the key question is whether Wynn Resorts’ fundamentals and future prospects are still undervalued, or if the market has already accounted for all of its expected growth.

Most Popular Narrative: 11.3% Undervalued

With the narrative fair value at $134.09 versus Wynn Resorts’ last close of $118.99, the consensus sees further upside for the stock. This valuation is driven by expectations that the company’s strategic positioning will unlock substantial growth over the coming years.

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. This is likely to result in higher long-term revenue and EBITDA growth.

Read the complete narrative.

Want to see what lies behind this bullish view? The narrative’s fair value is based on ambitious revenue, profit, and margin forecasts that might surprise you. Curious which impressive metrics and bold assumptions justify the price target? Discover the key financial drivers and possible turning points now.

Result: Fair Value of $134.09 (UNDERVALUED)

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

However, challenges such as reliance on Macau and rising operational costs could quickly shift Wynn Resorts’ growth outlook if market or regulatory pressures intensify.

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

Another View: What Do Valuation Ratios Suggest?

When we look at Wynn Resorts’ price-to-earnings ratio, it currently stands at 31.9 times earnings. That is above both the US Hospitality industry average of 23.5x and the company’s own fair ratio of 26.7x. This signals a premium being paid for expected growth, but also greater valuation risk if the business underdelivers. Could the gap narrow or widen from here?

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

Build Your Own Wynn Resorts Narrative

Prefer a different perspective or want to test your own assumptions? It only takes a few minutes to shape your own view of Wynn Resorts, so why not 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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