| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 67.20 | -38 |
| Intrinsic value (DCF) | 57.36 | -47 |
| Graham-Dodd Method | 1.20 | -99 |
| Graham Formula | 58.70 | -46 |
Wynn Resorts, Limited (LSE: 0QYK.L) is a premier global developer and operator of luxury integrated resorts, renowned for its high-end hospitality, gaming, and entertainment offerings. Headquartered in Las Vegas, Nevada, Wynn Resorts operates iconic properties such as Wynn Palace and Wynn Macau in Macau, Wynn Las Vegas, and Encore Boston Harbor in the U.S. The company specializes in delivering world-class casino experiences, luxury accommodations, fine dining, retail, and entertainment venues. Wynn Resorts caters to affluent travelers and high-net-worth individuals, positioning itself as a leader in the luxury segment of the travel lodging industry. With a strong emphasis on design excellence and customer service, Wynn Resorts has established a reputation for opulence and innovation in the consumer cyclical sector. The company's diversified revenue streams from gaming, hospitality, and entertainment make it a resilient player in the global tourism and leisure market.
Wynn Resorts presents a compelling investment case due to its strong brand equity, premium positioning in the luxury gaming and hospitality market, and diversified geographic footprint. The company's high-margin operations in Macau and Las Vegas, coupled with the growth potential of Encore Boston Harbor, provide revenue stability. However, risks include exposure to regulatory changes in Macau, high leverage (total debt of $12.27 billion), and sensitivity to macroeconomic cycles (beta of 1.325). The company's solid operating cash flow ($1.43 billion) and liquidity ($2.43 billion in cash) support its ability to service debt and maintain its $1.00 dividend per share. Investors should weigh Wynn's premium market positioning against sector volatility and regional regulatory risks.
Wynn Resorts competes in the high-end segment of the integrated resort market, differentiating itself through superior design, service excellence, and a focus on luxury experiences. Its competitive advantages include iconic properties with strong brand recognition, a loyal customer base, and high-quality amenities that command premium pricing. Wynn's Macau operations benefit from exclusivity as one of only six licensed casino operators in the region, while its U.S. properties leverage their prime locations in Las Vegas and Boston. The company's vertically integrated model allows it to capture value across gaming, hospitality, and entertainment. However, Wynn faces intense competition in Macau from operators with larger scale and in Las Vegas from resorts with broader mass-market appeal. Its relatively smaller property footprint compared to some competitors may limit revenue diversification. Wynn's focus on the high-roller segment makes it more susceptible to macroeconomic downturns and regulatory changes targeting VIP gaming.