Las Vegas Sands (LVS): Assessing Valuation Following High-Profile NBA Partnership in Macau

The NBA’s return to China with preseason games in Macau, in partnership with Las Vegas Sands (LVS), highlights the company’s growing role in the region. The collaboration could raise LVS’s visibility and create new opportunities.

See our latest analysis for Las Vegas Sands.

After a string of headline partnerships and community initiatives in Macau, Las Vegas Sands’ share price has pulled back, with a 1-year total shareholder return of -4.2%. Despite short-term volatility, the company’s longer-term total returns point to underlying growth as momentum builds around recent events.

If you’re interested in what other dynamic companies are capturing growth and attention, now is a great time to broaden your horizons and discover fast growing stocks with high insider ownership

With Las Vegas Sands shares trading below analyst targets and boasting healthy long-term growth, the question remains: is LVS undervalued right now, or is the market already factoring in all future gains?

Most Popular Narrative: 18% Undervalued

With the narrative's fair value estimate of $60.51 per share well above the last close of $49.61, there is a significant upside according to the market's most widely followed perspective. These dynamics draw focus to a handful of compelling drivers shaping Las Vegas Sands’ future potential.

The full opening and ramp-up of The Londoner in Macao, with its 2,405 rooms and suites, is expected to boost revenues and cash flows significantly as the property leverages its scale and quality in a competitive market. Marina Bay Sands (MBS) in Singapore reported record EBITDA from high-value tourism and is expected to continue its growth trajectory supported by increased visitor capacity post-renovations, directly impacting revenue and EBITDA growth.

Read the complete narrative.

Want to uncover what’s powering this optimistic price target? The future hinges on bold growth assumptions that could redefine earnings. The key factors are major drivers in both Macao and Singapore, improved profit margins, and a market multiple that only top operators command. Don’t miss the exact projections and hotly debated financials supporting this narrative. See what could send shares higher.

Result: Fair Value of $60.51 (UNDERVALUED)

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

However, a slower Macau recovery or increased competition in the premium mass segment could limit Las Vegas Sands’ upside, despite its recent momentum.

Find out about the key risks to this Las Vegas Sands narrative.

Another View: What Do Price Ratios Say?

Looking at how the stock trades relative to earnings offers another angle. Las Vegas Sands’ current ratio (24.1x) matches the US Hospitality industry average, but stands much lower than peers (55.3x) and is well below its fair ratio (30x). This gap hints at both upside and risk. Could the market be underestimating the company’s recovery, or is caution still warranted before multiples expand?

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

Build Your Own Las Vegas Sands Narrative

If you’d rather dig into the fundamentals and draw your own conclusions, you can build a unique view in just a few minutes. Do it your way

A great starting point for your Las Vegas Sands research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

Looking for more investment ideas?

Step up your portfolio with hand-picked opportunities. Don’t let the next breakout stock or market shift pass you by, take action now and stay ahead.

• Capitalize on high yields by reviewing these 19 dividend stocks with yields > 3% offering solid returns and strong financial health.
• Zero in on game-changing innovation by targeting these 24 AI penny stocks leading the charge in artificial intelligence and automation.
• Accelerate your strategy by checking out these 898 undervalued stocks based on cash flows that the market might be overlooking right now.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com