Wynn Resorts

Methodology

Wynn Resorts' fair value calculation is extremely challenging due to the cyclical nature of casino revenues and high operational leverage, where earnings swing dramatically with Macau gaming volumes, Las Vegas visitation, and economic conditions. The method works only when normalized for mid-cycle gaming volumes and normal tourist traffic, as peak and trough periods create highly misleading valuation signals. Investors should also consider geopolitical risks in Macau and regulatory changes that can impact earnings independent of operational execution.

Methodology

PEG ratios for Wynn are highly unreliable because growth rates are driven by volatile Macau VIP gaming, mass market recovery timing, and Las Vegas convention activity rather than sustainable business model expansion. Low PEG ratios during recovery phases may signal opportunity but also reflect execution risk, while high ratios during disruptions may not reflect true long-term earnings power. Investors should evaluate Wynn on normalized EBITDA, property-level cash flow, and market share trends rather than relying on PEG calculations that swing wildly with gaming cycles.

Methodology

Wynn currently pays no dividend, having suspended distributions to preserve liquidity and reduce debt following pandemic-related disruptions and Macau market volatility. PEGY therefore equals PEG with no yield component, and neither metric is particularly useful for valuing a highly cyclical gaming company. For Wynn investors, evaluating Macau market share, Las Vegas property positioning, and balance sheet strength matters far more than EPS-based valuation metrics.