Wynn Resorts Ltd (WYNN, Financial) recently experienced a daily loss of 3.52%, with a 3-month loss of 5.73%. The company's Loss Per Share stood at 0.16. These figures raise the question: Is Wynn Resorts stock modestly undervalued? In this analysis, we aim to answer this question by examining the company's financial performance, intrinsic value, and future prospects. We invite you to read on for a comprehensive evaluation.
Company Overview
Founded in 2002 by Steve Wynn, Wynn Resorts Ltd operates luxury casinos and resorts, including four megaresorts in Macau and Las Vegas. The company also runs Wynn Interactive, a digital sports betting and iGaming platform. With 76% of its 2019 pre-pandemic EBITDA from Macau and 24% from Las Vegas, Wynn Resorts is a significant player in the global resort industry. Despite its current share price of $100.55, the fair value (GF Value) of Wynn Resorts is estimated at $131.86, suggesting that the stock might be modestly undervalued.
Understanding GF Value
The GF Value is a proprietary measure of a stock's intrinsic value. It is calculated considering historical trading multiples, a GuruFocus adjustment factor based on past performance and growth, and future business performance estimates. If the stock price significantly exceeds the GF Value Line, the stock is likely overvalued, and its future return might be poor. Conversely, if it is significantly below the GF Value Line, its future return will likely be higher.
For Wynn Resorts (WYNN, Financial), the GF Value suggests that the stock is modestly undervalued. This estimation is based on historical multiples, an internal adjustment based on the company's past business growth, and analyst estimates of future performance. As such, the long-term return of Wynn Resorts stock is likely to be higher than its business growth.
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