As of May 28, 2025, Wynn Resorts Ltd's estimated intrinsic value ranges from $57.83 to $130.01 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $126.43 | +36.6% |
| Discounted Cash Flow (5Y) | $101.67 | +9.9% |
| Dividend Discount Model (Multi-Stage) | $72.89 | -21.2% |
| Dividend Discount Model (Stable) | $57.83 | -37.5% |
| Earnings Power Value | $130.01 | +40.5% |
Is Wynn Resorts Ltd (WYNN) undervalued or overvalued?
With the current market price at $92.54, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Wynn Resorts Ltd's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.77 | 0.85 |
| Cost of equity | 7.4% | 9.6% |
| Cost of debt | 5.2% | 9.1% |
| Tax rate | 1.0% | 13.6% |
| Debt/Equity ratio | 1.11 | 1.11 |
| After-tax WACC | 6.2% | 8.7% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $102 | $19,278M | 78.0% |
| 10-Year Growth | $126 | $21,906M | 61.7% |
| 5-Year EBITDA | $73 | $16,226M | 73.8% |
| 10-Year EBITDA | $99 | $19,044M | 55.9% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $1,616M |
| Discount Rate (WACC) | 8.7% - 6.2% |
| Enterprise Value | $18,592M - $25,980M |
| Net Debt | $8,483M |
| Equity Value | $10,109M - $17,497M |
| Outstanding Shares | 106M |
| Fair Value | $95 - $165 |
| Selected Fair Value | $130.01 |
| Metric | Value |
|---|---|
| Market Capitalization | $9825M |
| Enterprise Value | $18308M |
| Trailing P/E | 22.87 |
| Forward P/E | 16.96 |
| Trailing EV/EBITDA | 9.15 |
| Current Dividend Yield | 144.09% |
| Dividend Growth Rate (5Y) | 6.42% |
| Debt-to-Equity Ratio | 1.11 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $37.93 |
| Discounted Cash Flow (5Y) | 25% | $25.42 |
| Dividend Discount Model (Multi-Stage) | 20% | $14.58 |
| Dividend Discount Model (Stable) | 15% | $8.68 |
| Earnings Power Value | 10% | $13.00 |
| Weighted Average | 100% | $99.60 |
Based on our comprehensive valuation analysis, Wynn Resorts Ltd's weighted average intrinsic value is $99.60, which is approximately 7.6% above the current market price of $92.54.
Key investment considerations:
Given these factors, we believe Wynn Resorts Ltd is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.