Intrinsic value of Wynn Resorts - WYNN

Previous Close

$164.19

  Intrinsic Value

$82.76

stock screener

  Rating & Target

sell

-50%

Previous close

$164.19

 
Intrinsic value

$82.76

 
Up/down potential

-50%

 
Rating

sell

We calculate the intrinsic value of WYNN stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  9.57
  45.20
  41.18
  37.56
  34.31
  31.38
  28.74
  26.36
  24.23
  22.30
  20.57
  19.02
  17.62
  16.35
  15.22
  14.20
  13.28
  12.45
  11.70
  11.03
  10.43
  9.89
  9.40
  8.96
  8.56
  8.21
  7.89
  7.60
  7.34
  7.10
  6.89
Revenue, $m
  4,466
  6,485
  9,155
  12,594
  16,914
  22,221
  28,607
  36,149
  44,907
  54,923
  66,223
  78,817
  92,701
  107,860
  124,275
  141,918
  160,760
  180,773
  201,931
  224,212
  247,598
  272,079
  297,651
  324,317
  352,087
  380,982
  411,026
  442,253
  474,704
  508,426
  543,474
Variable operating expenses, $m
 
  5,635
  7,956
  10,944
  14,698
  19,310
  24,859
  31,413
  39,024
  47,728
  57,548
  68,492
  80,557
  93,731
  107,995
  123,326
  139,700
  157,092
  175,478
  194,840
  215,163
  236,437
  258,658
  281,831
  305,964
  331,073
  357,182
  384,318
  412,518
  441,822
  472,279
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  3,945
  5,635
  7,956
  10,944
  14,698
  19,310
  24,859
  31,413
  39,024
  47,728
  57,548
  68,492
  80,557
  93,731
  107,995
  123,326
  139,700
  157,092
  175,478
  194,840
  215,163
  236,437
  258,658
  281,831
  305,964
  331,073
  357,182
  384,318
  412,518
  441,822
  472,279
Operating income, $m
  522
  849
  1,199
  1,650
  2,216
  2,911
  3,748
  4,735
  5,883
  7,195
  8,675
  10,325
  12,144
  14,130
  16,280
  18,591
  21,060
  23,681
  26,453
  29,372
  32,435
  35,642
  38,992
  42,485
  46,123
  49,909
  53,844
  57,935
  62,186
  66,604
  71,195
EBITDA, $m
  927
  1,438
  2,030
  2,792
  3,750
  4,927
  6,342
  8,015
  9,956
  12,177
  14,682
  17,475
  20,553
  23,914
  27,553
  31,465
  35,642
  40,079
  44,770
  49,710
  54,895
  60,323
  65,992
  71,904
  78,062
  84,468
  91,129
  98,052
  105,247
  112,723
  120,494
Interest expense (income), $m
  265
  354
  368
  544
  770
  1,054
  1,403
  1,823
  2,319
  2,895
  3,553
  4,296
  5,125
  6,038
  7,035
  8,114
  9,274
  10,513
  11,830
  13,221
  14,686
  16,224
  17,834
  19,516
  21,269
  23,095
  24,996
  26,971
  29,025
  31,159
  33,377
Earnings before tax, $m
  311
  495
  831
  1,106
  1,446
  1,857
  2,345
  2,913
  3,564
  4,300
  5,122
  6,029
  7,019
  8,092
  9,245
  10,477
  11,785
  13,168
  14,623
  16,151
  17,749
  19,418
  21,158
  22,970
  24,854
  26,813
  28,849
  30,964
  33,161
  35,445
  37,819
Tax expense, $m
  9
  134
  224
  299
  390
  501
  633
  786
  962
  1,161
  1,383
  1,628
  1,895
  2,185
  2,496
  2,829
  3,182
  3,555
  3,948
  4,361
  4,792
  5,243
  5,713
  6,202
  6,711
  7,240
  7,789
  8,360
  8,954
  9,570
  10,211
Net income, $m
  242
  361
  607
  808
  1,056
  1,356
  1,712
  2,126
  2,602
  3,139
  3,739
  4,401
  5,124
  5,907
  6,749
  7,648
  8,603
  9,613
  10,675
  11,790
  12,957
  14,175
  15,446
  16,768
  18,144
  19,574
  21,060
  22,604
  24,208
  25,875
  27,608

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  2,627
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  11,954
  13,538
  19,113
  26,292
  35,312
  46,391
  59,722
  75,467
  93,751
  114,662
  138,253
  164,544
  193,529
  225,178
  259,447
  296,279
  335,615
  377,397
  421,568
  468,083
  516,906
  568,014
  621,400
  677,070
  735,047
  795,369
  858,092
  923,284
  991,031
  1,061,432
  1,134,602
Adjusted assets (=assets-cash), $m
  9,327
  13,538
  19,113
  26,292
  35,312
  46,391
  59,722
  75,467
  93,751
  114,662
  138,253
  164,544
  193,529
  225,178
  259,447
  296,279
  335,615
  377,397
  421,568
  468,083
  516,906
  568,014
  621,400
  677,070
  735,047
  795,369
  858,092
  923,284
  991,031
  1,061,432
  1,134,602
Revenue / Adjusted assets
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
  0.479
Average production assets, $m
  7,981
  11,588
  16,360
  22,505
  30,226
  39,709
  51,121
  64,598
  80,248
  98,148
  118,341
  140,846
  165,656
  192,747
  222,079
  253,607
  287,278
  323,041
  360,851
  400,666
  442,458
  486,205
  531,902
  579,554
  629,180
  680,815
  734,503
  790,306
  848,296
  908,557
  971,189
Working capital, $m
  1,574
  -1,530
  -2,161
  -2,972
  -3,992
  -5,244
  -6,751
  -8,531
  -10,598
  -12,962
  -15,629
  -18,601
  -21,877
  -25,455
  -29,329
  -33,493
  -37,939
  -42,662
  -47,656
  -52,914
  -58,433
  -64,211
  -70,246
  -76,539
  -83,093
  -89,912
  -97,002
  -104,372
  -112,030
  -119,989
  -128,260
Total debt, $m
  10,125
  10,513
  15,530
  21,992
  30,109
  40,081
  52,079
  66,250
  82,705
  101,525
  122,757
  146,419
  172,505
  200,990
  231,831
  264,980
  300,383
  337,986
  377,740
  419,604
  463,544
  509,542
  557,589
  607,692
  659,871
  714,161
  770,611
  829,285
  890,257
  953,618
  1,019,471
Total liabilities, $m
  11,796
  12,184
  17,201
  23,663
  31,780
  41,752
  53,750
  67,921
  84,376
  103,196
  124,428
  148,090
  174,176
  202,661
  233,502
  266,651
  302,054
  339,657
  379,411
  421,275
  465,215
  511,213
  559,260
  609,363
  661,542
  715,832
  772,282
  830,956
  891,928
  955,289
  1,021,142
Total equity, $m
  158
  1,354
  1,911
  2,629
  3,531
  4,639
  5,972
  7,547
  9,375
  11,466
  13,825
  16,454
  19,353
  22,518
  25,945
  29,628
  33,562
  37,740
  42,157
  46,808
  51,691
  56,801
  62,140
  67,707
  73,505
  79,537
  85,809
  92,328
  99,103
  106,143
  113,460
Total liabilities and equity, $m
  11,954
  13,538
  19,112
  26,292
  35,311
  46,391
  59,722
  75,468
  93,751
  114,662
  138,253
  164,544
  193,529
  225,179
  259,447
  296,279
  335,616
  377,397
  421,568
  468,083
  516,906
  568,014
  621,400
  677,070
  735,047
  795,369
  858,091
  923,284
  991,031
  1,061,432
  1,134,602
Debt-to-equity ratio
  64.082
  7.770
  8.130
  8.360
  8.530
  8.640
  8.720
  8.780
  8.820
  8.850
  8.880
  8.900
  8.910
  8.930
  8.940
  8.940
  8.950
  8.960
  8.960
  8.960
  8.970
  8.970
  8.970
  8.980
  8.980
  8.980
  8.980
  8.980
  8.980
  8.980
  8.990
Adjusted equity ratio
  -0.265
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  242
  361
  607
  808
  1,056
  1,356
  1,712
  2,126
  2,602
  3,139
  3,739
  4,401
  5,124
  5,907
  6,749
  7,648
  8,603
  9,613
  10,675
  11,790
  12,957
  14,175
  15,446
  16,768
  18,144
  19,574
  21,060
  22,604
  24,208
  25,875
  27,608
Depreciation, amort., depletion, $m
  405
  588
  830
  1,142
  1,534
  2,016
  2,595
  3,279
  4,074
  4,982
  6,007
  7,150
  8,409
  9,784
  11,273
  12,873
  14,583
  16,398
  18,317
  20,338
  22,460
  24,680
  27,000
  29,419
  31,938
  34,559
  37,284
  40,117
  43,061
  46,120
  49,299
Funds from operations, $m
  1,175
  950
  1,437
  1,950
  2,590
  3,371
  4,307
  5,405
  6,675
  8,121
  9,746
  11,550
  13,533
  15,691
  18,022
  20,522
  23,186
  26,011
  28,992
  32,129
  35,417
  38,856
  42,446
  46,187
  50,082
  54,133
  58,344
  62,721
  67,268
  71,994
  76,906
Change in working capital, $m
  204
  -476
  -630
  -812
  -1,020
  -1,252
  -1,507
  -1,780
  -2,067
  -2,364
  -2,667
  -2,972
  -3,277
  -3,578
  -3,874
  -4,164
  -4,447
  -4,723
  -4,993
  -5,258
  -5,519
  -5,778
  -6,035
  -6,293
  -6,554
  -6,819
  -7,090
  -7,370
  -7,658
  -7,958
  -8,271
Cash from operations, $m
  971
  1,426
  2,068
  2,761
  3,610
  4,624
  5,814
  7,185
  8,742
  10,485
  12,413
  14,522
  16,809
  19,269
  21,896
  24,685
  27,633
  30,734
  33,986
  37,387
  40,936
  44,633
  48,481
  52,480
  56,636
  60,952
  65,434
  70,090
  74,927
  79,953
  85,178
Maintenance CAPEX, $m
  0
  -405
  -588
  -830
  -1,142
  -1,534
  -2,016
  -2,595
  -3,279
  -4,074
  -4,982
  -6,007
  -7,150
  -8,409
  -9,784
  -11,273
  -12,873
  -14,583
  -16,398
  -18,317
  -20,338
  -22,460
  -24,680
  -27,000
  -29,419
  -31,938
  -34,559
  -37,284
  -40,117
  -43,061
  -46,120
New CAPEX, $m
  -1,226
  -3,607
  -4,772
  -6,145
  -7,721
  -9,483
  -11,411
  -13,477
  -15,650
  -17,899
  -20,193
  -22,505
  -24,810
  -27,091
  -29,333
  -31,527
  -33,671
  -35,764
  -37,809
  -39,816
  -41,791
  -43,747
  -45,697
  -47,652
  -49,627
  -51,634
  -53,689
  -55,803
  -57,990
  -60,262
  -62,631
Cash from investing activities, $m
  -1,288
  -4,012
  -5,360
  -6,975
  -8,863
  -11,017
  -13,427
  -16,072
  -18,929
  -21,973
  -25,175
  -28,512
  -31,960
  -35,500
  -39,117
  -42,800
  -46,544
  -50,347
  -54,207
  -58,133
  -62,129
  -66,207
  -70,377
  -74,652
  -79,046
  -83,572
  -88,248
  -93,087
  -98,107
  -103,323
  -108,751
Free cash flow, $m
  -317
  -2,586
  -3,293
  -4,214
  -5,253
  -6,394
  -7,614
  -8,887
  -10,187
  -11,488
  -12,762
  -13,989
  -15,150
  -16,231
  -17,221
  -18,115
  -18,912
  -19,613
  -20,222
  -20,746
  -21,194
  -21,574
  -21,897
  -22,172
  -22,410
  -22,621
  -22,813
  -22,997
  -23,180
  -23,370
  -23,573
Issuance/(repayment) of debt, $m
  1,014
  388
  5,017
  6,461
  8,118
  9,971
  11,998
  14,171
  16,455
  18,820
  21,232
  23,662
  26,086
  28,484
  30,841
  33,149
  35,403
  37,603
  39,754
  41,863
  43,941
  45,998
  48,047
  50,103
  52,179
  54,290
  56,450
  58,673
  60,972
  63,361
  65,853
Issuance/(repurchase) of shares, $m
  -11
  3,461
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,017
  3,849
  5,017
  6,461
  8,118
  9,971
  11,998
  14,171
  16,455
  18,820
  21,232
  23,662
  26,086
  28,484
  30,841
  33,149
  35,403
  37,603
  39,754
  41,863
  43,941
  45,998
  48,047
  50,103
  52,179
  54,290
  56,450
  58,673
  60,972
  63,361
  65,853
Total cash flow (excl. dividends), $m
  698
  1,263
  1,725
  2,247
  2,864
  3,577
  4,385
  5,284
  6,268
  7,332
  8,469
  9,673
  10,936
  12,254
  13,621
  15,034
  16,491
  17,991
  19,532
  21,117
  22,747
  24,424
  26,150
  27,931
  29,769
  31,670
  33,637
  35,676
  37,792
  39,992
  42,280
Retained Cash Flow (-), $m
  -270
  -3,823
  -557
  -718
  -902
  -1,108
  -1,333
  -1,575
  -1,828
  -2,091
  -2,359
  -2,629
  -2,898
  -3,165
  -3,427
  -3,683
  -3,934
  -4,178
  -4,417
  -4,651
  -4,882
  -5,111
  -5,339
  -5,567
  -5,798
  -6,032
  -6,272
  -6,519
  -6,775
  -7,040
  -7,317
Prev. year cash balance distribution, $m
 
  2,627
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  68
  1,167
  1,529
  1,962
  2,469
  3,052
  3,709
  4,440
  5,241
  6,110
  7,044
  8,038
  9,089
  10,194
  11,351
  12,557
  13,812
  15,115
  16,466
  17,865
  19,313
  20,812
  22,364
  23,972
  25,637
  27,365
  29,157
  31,018
  32,952
  34,963
Discount rate, %
 
  11.20
  11.76
  12.35
  12.97
  13.61
  14.29
  15.01
  15.76
  16.55
  17.37
  18.24
  19.16
  20.11
  21.12
  22.18
  23.28
  24.45
  25.67
  26.95
  28.30
  29.72
  31.20
  32.76
  34.40
  36.12
  37.93
  39.82
  41.81
  43.91
  46.10
PV of cash for distribution, $m
 
  61
  935
  1,078
  1,205
  1,304
  1,369
  1,394
  1,377
  1,321
  1,231
  1,115
  981
  839
  697
  563
  441
  335
  247
  177
  122
  82
  53
  33
  20
  12
  6
  3
  2
  1
  0
Current shareholders' claim on cash, %
  100
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0

Wynn Resorts, Limited (Wynn Resorts) is a developer, owner and operator of destination casino resorts that integrate accommodations and a range of amenities, including dining outlets, retail offerings, entertainment theaters and meeting complexes. The Company's segments include Macau Operations and Las Vegas Operations. The Company's Macau Operations include Wynn Macau and Wynn Palace. It also includes Encore, an expansion at Wynn Macau. The Company's Las Vegas Operations include Wynn Las Vegas and Encore, an expansion at Wynn Las Vegas. Wynn Las Vegas is located at the intersection of the Las Vegas Strip and Sands Avenue. As of December 31, 2016, it occupied approximately 215 acres of land fronting the Las Vegas Strip. As of December 31, 2016, the Company owned approximately 18 acres across Sands Avenue. The Company is constructing Wynn Boston Harbor, an integrated casino resort in Everett, Massachusetts.

FINANCIAL RATIOS  of  Wynn Resorts (WYNN)

Valuation Ratios
P/E Ratio 69.1
Price to Sales 3.7
Price to Book 105.8
Price to Tangible Book
Price to Cash Flow 17.2
Price to Free Cash Flow -65.5
Growth Rates
Sales Growth Rate 9.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -36.2%
Cap. Spend. - 3 Yr. Gr. Rate 19.3%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 6408.2%
Total Debt to Equity 6408.2%
Interest Coverage 2
Management Effectiveness
Return On Assets 4.5%
Ret/ On Assets - 3 Yr. Avg. 7.1%
Return On Total Capital 2.5%
Ret/ On T. Cap. - 3 Yr. Avg. 5.2%
Return On Equity 1052.2%
Return On Equity - 3 Yr. Avg. 30.5%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 37.9%
Gross Margin - 3 Yr. Avg. 38.2%
EBITDA Margin 22%
EBITDA Margin - 3 Yr. Avg. 24.3%
Operating Margin 11.7%
Oper. Margin - 3 Yr. Avg. 16%
Pre-Tax Margin 7%
Pre-Tax Margin - 3 Yr. Avg. 10.6%
Net Profit Margin 5.4%
Net Profit Margin - 3 Yr. Avg. 7.9%
Effective Tax Rate 2.9%
Eff/ Tax Rate - 3 Yr. Avg. 1.6%
Payout Ratio 134.3%

WYNN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WYNN stock intrinsic value calculation we used $4466 million for the last fiscal year's total revenue generated by Wynn Resorts. The default revenue input number comes from 2016 income statement of Wynn Resorts. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our WYNN stock valuation model: a) initial revenue growth rate of 45.2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 11.2%, whose default value for WYNN is calculated based on our internal credit rating of Wynn Resorts, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Wynn Resorts.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of WYNN stock the variable cost ratio is equal to 86.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for WYNN stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Wynn Resorts.

Corporate tax rate of 27% is the nominal tax rate for Wynn Resorts. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the WYNN stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for WYNN are equal to 178.7%.

Life of production assets of 19.7 years is the average useful life of capital assets used in Wynn Resorts operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for WYNN is equal to -23.6%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $158 million for Wynn Resorts - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 102.734 million for Wynn Resorts is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Wynn Resorts at the current share price and the inputted number of shares is $16.9 billion.

RELATED COMPANIES Price Int.Val. Rating
LVS Las Vegas Sand 72.95 31.49  str.sell
MCRI Monarch Casino 42.04 33.25  sell
RRR Red Rock Resor 33.76 16.76  str.sell

COMPANY NEWS

▶ Mass. Gaming Commission says Wynn review is 'a priority'   [03:20PM  American City Business Journals]
▶ Who Wants to Buy Wynn Resorts?   [01:42PM  Barrons.com]
▶ New CEO denies prior knowledge of sex claims against founder   [Feb-19-18 11:27PM  Associated Press]
▶ Your Simple Guide to Gaming Stocks   [Feb-18-18 12:00PM  Motley Fool]
▶ Closing Bell: LIVE MARKETS BLOG   [04:06PM  TheStreet.com]
▶ Wynn Resorts' $5 billion problem   [Feb-15-18 05:18PM  CNBC]
▶ Sexual assault reports against Wynn filed with Vegas police   [Feb-13-18 09:21PM  Associated Press]
▶ What to Expect for the Future of Wynn Resorts   [Feb-11-18 10:56PM  Bloomberg Video]
▶ Is Wynn Resorts Now a Takeover Target?   [02:17PM  Motley Fool]
▶ [$$] No-Wynn Situation Looks a No-Win for Investors   [01:15AM  The Wall Street Journal]
▶ [$$] No-Wynn Situation Looks a No-Win for Investors   [04:24AM  The Wall Street Journal]
Financial statements of WYNN
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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