Is Red Rock Resorts, Inc. overvalued or undervalued?

As of 13 June 2025, the valuation grade for Red Rock Resorts, Inc. has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently deemed overvalued based on its financial metrics. Key ratios include a P/E ratio of 17, an EV to EBITDA of 11.16, and a Price to Book Value of 21.48, which are elevated compared to peers like Carnival Corp. with a P/E of 14.84 and Wyndham Hotels & Resorts, Inc. at 19.83.
In comparison to its peers, Red Rock Resorts, Inc. shows a higher valuation despite similar or lower performance metrics, suggesting that the market may be pricing in excessive growth expectations. Additionally, while the company has delivered strong returns over the past five years, outperforming the S&P 500, its recent stock performance has not kept pace with the broader market over the last year. Overall, these factors support the conclusion that Red Rock Resorts, Inc. is overvalued at its current price of 50.93.