WYNN Valuation - Is Wynn Resorts Ltd Over or Undervalued?

Comprehensive analysis of Wynn Resorts Ltd valuation metrics including P/E, P/B, P/S, and EV/EBITDA ratios

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Current Stock Price

$108.19

Market Cap

$11.45B

Valuation Date

Feb 28, 2026

Valuation Verdict

-

Potentially Overvalued

Based on valuation multiples, WYNN appears expensive relative to fundamentals. 2 key metrics suggest premium pricing.

Key Valuation Metrics

These four fundamental valuation ratios help determine if WYNN is trading at a fair price relative to its earnings, assets, revenue, and cash flow generation.

P/E Ratio (Price-to-Earnings)
High
35.07x
Above market average
Investors pay $35.07 for every $1 of annual earnings
P/B Ratio (Price-to-Book)
High
13.94x
Premium to book value
Stock trades at 13.94x its book value per share
P/S Ratio (Price-to-Sales)
Good
1.60x
Low relative to sales
Market values each $1 of revenue at $1.60
EV/EBITDA
High
13.88x
Fair valuation
Enterprise value is 13.88x EBITDA

How to Interpret These Metrics

P/E Ratio: Lower P/E often indicates better value, but compare against industry peers. High-growth companies typically have higher P/E ratios. Market average is 15-20x.
P/B Ratio: Values below 1.0 suggest the stock trades below its net asset value, which could indicate undervaluation or fundamental problems. Technology companies often trade at higher P/B ratios.
P/S Ratio: Useful for unprofitable companies or comparing revenue efficiency. Lower is generally better, but high-margin businesses can justify higher P/S ratios.
EV/EBITDA: Accounts for debt and excludes non-cash expenses, making it ideal for comparing companies with different capital structures. Values under 10x often indicate good value.

How WYNN Compares to Peers

What This Means for Investors

Premium Valuation Alert

Wynn Resorts Ltd (WYNN) is trading at premium valuation multiples, suggesting the market has high expectations for future growth. While this doesn't automatically mean the stock will decline, it does indicate limited margin of safety. Investors should carefully evaluate whether the company's growth prospects justify the current valuation or if they're paying too much for the stock.

Bullish Considerations

  • Attractive price-to-sales multiple

Bearish Considerations

  • P/E ratio significantly above average
  • High premium to book value
  • Multiple metrics indicate overvaluation

Complete Your Analysis

Valuation is just one piece of the puzzle. Get the complete picture of WYNN with our comprehensive analysis tools.

Frequently Asked Questions

What is WYNN's P/E ratio and what does it mean?

WYNN has a P/E (Price-to-Earnings) ratio of 35.07. This means investors are paying $35.07 for every $1 of annual earnings. A lower P/E generally suggests better value, but it's important to compare against industry peers and growth prospects. The market average P/E is typically 15-20x.

Is WYNN stock overvalued or undervalued?

Based on our analysis of key valuation metrics (P/E, P/B, P/S, EV/EBITDA), WYNN appears potentially overvalued. Based on valuation multiples, WYNN appears expensive relative to fundamentals. 2 key metrics suggest premium pricing. However, valuation is just one factor to consider alongside growth prospects, competitive position, and market conditions.

What is a good P/E ratio for WYNN?

There's no single "good" P/E ratio as it varies by industry and growth stage. For Wynn Resorts Ltd, compare the current P/E of 35.07 against: (1) Industry peers, (2) Historical average P/E for WYNN, (3) Expected earnings growth rate. High-growth companies often justify higher P/E ratios, while mature companies typically trade at lower multiples.

How do I use valuation ratios to make investment decisions?

Valuation ratios are screening tools, not buy/sell signals. Use them to: (1) Compare WYNN against competitors, (2) Identify potential over/undervaluation, (3) Understand what you're paying for earnings, assets, or sales. Combine valuation analysis with fundamental research, growth prospects, and technical analysis for comprehensive decision-making.

What is EV/EBITDA and why does it matter?

EV/EBITDA (Enterprise Value to EBITDA) is 13.88 for WYNN. This ratio is useful because it accounts for debt and excludes non-cash expenses, making it better for comparing companies with different capital structures. Lower EV/EBITDA generally indicates better value. It's particularly useful for comparing companies in capital-intensive industries.

Disclaimer: This valuation analysis is for informational and educational purposes only and should not be considered investment advice. Valuation metrics are just one factor in investment decisions. Always conduct comprehensive research and consult with a qualified financial advisor before making investment decisions. Past performance and current valuations do not guarantee future results.

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