Assessing Red Rock Resorts (RRR) Valuation After Its Recent Share Price Pullback

Red Rock Resorts (RRR) has drawn fresh attention as investors reassess its regional Las Vegas casino footprint, with current metrics such as annual revenue of US$2.01b and net income of US$188.07m under the spotlight.

See our latest analysis for Red Rock Resorts.

At a latest share price of US$61.60, Red Rock Resorts has seen a 7 day share price return of -7.77% and a 90 day share price return of 12.59%, while the 1 year total shareholder return sits at 21.20%, suggesting that long term holders have been rewarded even as recent momentum has cooled.

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With annual revenue of about US$2.01b and net income of US$188.07m, plus a recent 1 year total return of 21.20%, is Red Rock Resorts still attractively priced, or is the market already baking in future growth?

Most Popular Narrative: 8.7% Undervalued

Red Rock Resorts' most followed narrative pegs fair value at about $67.47, comfortably above the latest $61.60 close, which raises clear questions about what assumptions are doing the heavy lifting.

The company's large land bank and disciplined approach to new development projects in high-barrier-to-entry locations uniquely position Red Rock Resorts to capitalize on the growing preference for local, integrated resort experiences, providing a multi-year pipeline for revenue and EBITDA expansion.

Read the complete narrative.

It is worth examining what kind of revenue trajectory and profit margins are embedded in that view, and what future earnings multiple supports it, even without seeing every step yet.

Result: Fair Value of $67.47 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the story can shift quickly if Las Vegas locals pull back their spending, or if ongoing casino upgrades end up costing more or taking longer than planned.

Find out about the key risks to this Red Rock Resorts narrative.

Next Steps

If this mix of risks and rewards feels finely balanced, take a moment to check the details yourself and move quickly to shape your own view, starting with 4 key rewards and 2 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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