Is Red Rock Resorts, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Red Rock Resorts, Inc. has moved from expensive to fair. The company appears fairly valued based on its current metrics, with a P/E ratio of 17, an EV to EBITDA of 11.16, and a Price to Book Value of 21.48. In comparison to peers, Norwegian Cruise Line Holdings Ltd. has a P/E of 14.40, while Wyndham Hotels & Resorts, Inc. is considered expensive with a P/E of 20.98, indicating that Red Rock is positioned competitively within its industry.
In terms of performance, Red Rock has shown a year-to-date return of 31.90%, significantly outperforming the S&P 500's return of 12.22% over the same period. This strong performance, coupled with its fair valuation, suggests that the stock is a solid investment opportunity within the Hotels & Resorts sector.