Las Vegas Sands (LVS): Revisiting Valuation After a 24% Three-Month Share Price Climb

Las Vegas Sands (LVS) has quietly pushed higher this month, with shares up about 3% over the past 30 days and roughly 24% in the past 3 months, inviting a closer look.

See our latest analysis for Las Vegas Sands.

That recent climb builds on a strong trend, with the share price now at $66.96 and a solid year to date share price return alongside healthy multi year total shareholder returns, suggesting momentum is still building as investors reassess growth and risk.

If Las Vegas Sands has you thinking about travel and leisure exposure, it could be worth exploring other consumer facing names via fast growing stocks with high insider ownership for fresh ideas.

With shares hovering just below analyst targets but trading at a hefty implied discount to intrinsic value, the key question now is clear: Is Las Vegas Sands mispriced value, or has the market already baked in its next leg of growth?

Most Popular Narrative: 2% Overvalued

With Las Vegas Sands last closing at $66.96 against a narrative fair value of about $65.85, the story hinges on how far Singapore strength can offset ongoing Macau uncertainty.

The strategic focus on share repurchases, including an increase in the buyback authorization to $2 billion, is intended to deliver accretive earnings per share (EPS) growth and return value to shareholders over time. Continued reinvestment in Macao assets and the anticipation of non-gaming investments aligning with governmental expectations suggests sustained long-term growth prospects, potentially improving both revenue and net margins.

Read the complete narrative.

Want to see what powers this valuation gap? The narrative leans on compounding earnings, richer margins, and a future earnings multiple that might surprise you.

Result: Fair Value of $65.85 (OVERVALUED)

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

However, a softer than expected Macau recovery and heightened competition in its premium mass segment could challenge the earnings and margin assumptions behind this narrative.

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

Another Take on Value

Those narrative fair value models say Las Vegas Sands is about 2% overvalued, yet our SWS DCF model paints a very different picture and suggests the stock is trading at nearly a 49% discount to its intrinsic value. Is the market underestimating long term cash flows, or is the model too generous?

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 Las Vegas Sands 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 916 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 Las Vegas Sands Narrative

If you would rather dig into the numbers yourself and shape your own story of Las Vegas Sands, you can build one in just 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.

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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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