Red Rock Resorts was formerly known as Station Casinos Corp. and changed its name to Red Rock Resorts, Inc. in January 2016. The company was founded in 2015 and is based in Las Vegas, Nevada.
RRR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Red Rock Resorts Inc. To summarize, we found that Red Rock Resorts Inc ranked in the 2th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 99%. In terms of the factors that were most noteworthy in this DCF analysis for RRR, they are:
The company's balance sheet shows it gets 19% of its capital from equity, and 81% of its capital from debt. Its equity weight surpasses that of only 11.05% of free cash flow generating stocks in the Consumer Cyclical sector.
Its compound free cash flow growth rate, as measured over the past 4.1 years, is -0.39% -- higher than only 2.97% of stocks in our DCF forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as RRR, try ADNT, CRMT, FUN, MAT, and TSLA.
Thank you for joining us today on Red Rock Resorts first-quarter 2020 earnings conference call. Joining me on the call today from Red Rock Resorts are Frank Fertitta, chairman and chief executive officer; Rich Haskins, president; Bob Finch, executive vice president and chief operating officer; and Rod Atamian, executive vice president of development and strategy.