Wynn Resorts, Limited (WYNN) Intrinsic Value

DCF-based fair value calculation with Bear, Base, and Bull scenarios

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Wynn Resorts, Limited (WYNN)

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Intrinsic Value (DCF)

Current$117.37
Intrinsic$178.14
+52%
$93.25$178.14$339.31
Market implies 13% growth for 5 years
DCF analysis suggests WYNN could have 52% upside at 20% growth — verify assumptions match your view.
At $117, the market prices in 13% annual cash flow growth — a moderate expectation aligned with historical trends (20%).
Range: Bear $93 → Bull $339. Current price implies expectations below the base case, but well above the bear case.
Discount ↓Growth →16%18%20%22%
8%$236$263$292$323
10%$140$158$178$199
12%$86$100$115$131
14%$53$63$75$87

Bull Case

  • Bull case ($339) offers 189% upside at 24% growth, 9% discount
  • 34% margin of safety vs. base case estimate
  • Market-implied growth (13%) ≤ historical CAGR (20%)

Bear Case

  • Bear case ($93) implies 21% downside at 16% growth, 12% discount
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5-Year Free Cash Flow Projection

Year 1$1.20B
Year 2$1.45B
Year 3$1.73B
Year 4$2.08B
Year 5$2.50B
Terminal$36.75B

📐 Model Inputs

Growth Rate20.0%5Y CAGR (cascade: 5Y→3Y→TTM)
Discount Rate10.0%WACC estimate
Terminal Growth3.0%Perpetuity rate
Base Free Cash Flow$1.00BTTM actual
Bear g×0.8, r+2%
Base Historical CAGR
Bull g×1.2, r−1.5%
ℹ️

DCF estimates based on historical growth rates extrapolated forward. See FAQ below for full methodology.

Frequently Asked Questions

Is WYNN stock undervalued or overvalued?
🟢 UNDERVALUED

WYNN trades at $117.37 vs. our DCF-derived intrinsic value of $178.14, implying +48% upside. At a 10.0% WACC and 20.0% projected FCF growth, the market appears to be underpricing the present value of WYNN's future cash flows. The bear case ($86.45) still suggests upside, providing margin of safety.

What is WYNN's intrinsic value?

Using a 5-year DCF model: Base FCF of $1.00B, projected at 20.0% 5Y CAGR (best of revenue, EPS, or FCF growth), discounted at 10.0% WACC, with 3.0% terminal growth. Terminal value calculated via Gordon Growth Model: TV = FCF₅ × (1+g) / (WACC−g). After deducting $9.74B net debt and dividing by 0.11B shares: Bear $86.45 | Base $178.14 | Bull $313.16. Current price $117.37 implies +48% to base case.

How is WYNN's fair value calculated?

DCF Methodology:

① Project FCF years 1-5 using 20.0% growth derived from 5-year historical CAGR (best of revenue, EPS, or FCF growth, with 8% floor and 25% cap).

② Calculate terminal value at year 5 using perpetuity growth model with g=3.0%.

③ Discount all cash flows to PV using WACC=10.0%.

④ Sum PV of explicit period + PV of terminal value = Enterprise Value ($29.38B).

⑤ Subtract net debt, divide by shares outstanding.

Sensitivity analysis available above—adjust WACC ±2% or growth ±3% to stress-test the valuation. Implied EV/FCF multiple: 29.3x.