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Wynn Resorts, Limited (WYNN)

Company Dividend Discount ModelIndustry: Gambling, Resorts & CasinosSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$39.59 - $59.01$48.83
Multi-Stage$59.04 - $64.73$61.83
Blended Fair Value$55.33
Current Price$128.27
Upside-56.86%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-24.44%-17.39%1.320.800.010.011.035.355.383.033.074.72
YoY Growth--64.71%5,763.88%-6.95%-98.57%-80.80%-0.57%77.63%-1.37%-34.84%-47.07%
Dividend Yield--1.58%0.75%0.01%0.02%0.82%8.89%4.16%1.66%2.68%5.05%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)504.28
(-) Cash Dividends Paid (M)176.38
(=) Cash Retained (M)327.90
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)100.8663.0337.82
Cash Retained (M)327.90327.90327.90
(-) Cash Required (M)-100.86-63.03-37.82
(=) Excess Retained (M)227.04264.86290.08
(/) Shares Outstanding (M)105.85105.85105.85
(=) Excess Retained per Share2.142.502.74
LTM Dividend per Share1.671.671.67
(+) Excess Retained per Share2.142.502.74
(=) Adjusted Dividend3.814.174.41
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-0.48%0.52%1.52%
Fair Value$39.59$48.83$59.01
Upside / Downside-69.14%-61.93%-54.00%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)504.28506.88509.50512.14514.79517.45532.97
Payout Ratio34.98%45.98%56.99%67.99%79.00%90.00%92.50%
Projected Dividends (M)176.38233.07290.35348.21406.66465.70493.00

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-0.48%0.52%1.52%
Year 1 PV (M)211.51213.64215.76
Year 2 PV (M)239.11243.94248.82
Year 3 PV (M)260.23268.16276.24
Year 4 PV (M)275.80287.05298.65
Year 5 PV (M)286.62301.32316.61
PV of Terminal Value (M)4,975.795,230.865,496.29
Equity Value (M)6,249.066,544.966,852.36
Shares Outstanding (M)105.85105.85105.85
Fair Value$59.04$61.83$64.73
Upside / Downside-53.98%-51.80%-49.53%

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