"WYNN's adjusted enterprise value is currently 10.3x our 2012 EBITDA estimate, above the gaming group average of 9.0x and below the Macau centric operators at 11.3x," KeyBanc Capital Markets analysts wrote in a May 15 report. "The P/E ratio is now at a historically low 18.2x 2012 EPS vs a three-year average of 36x, and on an EV/Sales basis WYNN trades at 2.8x, below its three year average of 3.9s. We value WYNN on a sum-of-the-parts valuation basis (12.75x EV/forward EBITDA for Macau, 11x for Las Vegas, and $4 billion in net debt) and arrive at our $175 price target for WYNN. In our opinion, the pullback following 1Q12 earnings has created an opportunity to add to or initiate positions in the good quality growth name of WYNN."
Shares of Wynn Resorts hit a 52-week low on Monday at $98.26. The stock's 52-week high of $165.49 was set on July 19.
Wynn Resorts' forward P/E is 14.42; the average for gambling companies is 13.73. For comparison, International Game Technology(IGT) has a lower forward P/E of 12.07.
Fifteen of the 27 analysts who cover Wynn Resorts rated it buy. Eleven analysts gave the stock a hold rating and one rated it sell.