* Note: Prices are in Million (M) USD.
Description:
Wynn Resorts, Limited is an American publicly traded corporation based in Paradise, Nevada that is a developer and operator of high end hotels and casinos.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,985 M
Debt : $0 M
EBITDA : $1,468 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Consumer cyclical
Industry: Resorts & casinos
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 27.76
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $-31 M
Average Revenue: $4,400 M
Revenue Converted To Free Cash Flow (%): -0.7%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $7,128 M
Revenue 4 Years Ago (2020-12-31): $2,096 M
Last 5 Years Average Revenue Growth: 48%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $110 M
Share Count 5 Years Ago (2020-12-31): $107 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $4.68
Trailing 12-Month Earnings Per Share (EPS): $4.45
Average Earnings Per Share (EPS): $4.57
Dividend Per Share (DPS): $1
Payout Ratio: 22%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 11 valid ROE years (max 20).Average ROE: 34.1%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $127
52-Week Low: $65
Threshold Price (15% Above 52-Week Low): $75
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $11,064 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 23 points to above Wynn Resorts Limited (WYNN) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Growth Based PE
48.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 14 Years Avg P/E (25.27)
× EPS ($4.57) = $115.36.
Last 14 Years Avg PE 25.27, Fair Value PE 15, Industry Based PE 20, Growth Based PE 48, RCFC Based PE 12, ROE Based PE 37.25, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 24.94. Value-Trades has assined P/E value 24.94. Since an average (Current Year EPS + Next Year EPS) earning per share is $4.565.
The fair value of Wynn Resorts Limited (WYNN) stock should be (24.94 x $4.565) = $113.87.
