RRR
Red Rock Resorts, Inc.
$55.38
Platform & Compounding FCF
50%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 26.7% below fair value
You pay
$55.38
Bear
$59.64
Fair
$75.58
Bull
$90.58
Bear
$59.64
+7.7%
5% stage 1 growth, 12% discount
Fair
$75.58
+36.5%
8% stage 1 growth, 12% discount
Bull
$90.58
+63.6%
11% stage 1 growth, 12% discount
Key Value Driver
FCF growth rate (8% base case)
Terminal Value % of EV
33%
Implied Market Multiple
12.0x
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $71.00 from 30 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $75.58 per share.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions