Is Wynn Resorts Ltd. overvalued or undervalued?

As of 6 May 2020, the valuation grade for Wynn Resorts Ltd. moved from very attractive to risky, indicating a shift in investor sentiment. The company appears to be overvalued, with a P/E ratio of 20, significantly higher than peers like MGM Resorts International at 11.74 and Boyd Gaming Corp. at 11.80. Additionally, Wynn's EV to EBITDA ratio stands at 10.94, while its Price to Book Value is notably negative at -27.77, further suggesting potential overvaluation.
In terms of performance, Wynn Resorts has outperformed the S&P 500 over multiple periods, with a year-to-date return of 49.35% compared to the S&P 500's 12.22%. However, the long-term 10-year return of 65.61% for Wynn is considerably lower than the S&P 500's 231.64%, which raises concerns about its sustainability. Overall, the combination of high valuation ratios and mixed performance metrics supports the conclusion that Wynn Resorts Ltd. is overvalued.