DCF Tool


Red Rock Resorts Inc – Casinos (except Casino Hotels)
red rock resorts, inc., through its interest in station holdco and station llc, engages in casino entertainment, and gaming and entertainment businesses in the united states. it operates through two segments, las vegas operations and native american management. the company develops, manages, and operates casino entertainment properties; and owns and operates 10 gaming and entertainment facilities, and 10 smaller casinos in the las vegas regional market. in addition, it manages graton resort & casino in northern california. it operates approximately 20,400 slot machines, 375 table games, and 5,000 hotel rooms. the company was formerly known as station casinos corp. and changed its name to red rock resorts, inc. in january 2016. red rock resorts, inc. was founded in 1976 and is based in las vegas, nevada.
Analysis Results
Intrinsic Value $169.34
Latest Price $40.31
Relative Value 76% undervalued
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Cash Flow (Millions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 11.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 304 286
2024 338 301
2025 376 316
2026 419 331
2027 466 348
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 11800 million. This corresponds to a present value of 8310 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1580 million. Adding in the terminal value gives a total present value of 9890 million.

There are presently 58.4 million outstanding shares, so the intrinsic value per share is 169.34.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 220,995,000
Current Cash 117,289,000
Current Liabilities 293,249,000
Current Debt 26,059,000
Non-Cash Working Capital (NCWC) -163,484,000
Change in NCWC -138,448,000
EBIT 597,129,000
Tax Provision 44,530,000
Depreciation and Amortization 128,368,000
Capital Expenditure -328,589,000
Unlevered Free Cash Flow 197,316,622
Current Assets 429,140,000
Current Cash 275,281,000
Current Liabilities 204,816,000
Current Debt 25,921,000
Non-Cash Working Capital (NCWC) -25,036,000
Change in NCWC 24,594,000
EBIT 563,822,000
Tax Provision -69,287,000
Depreciation and Amortization 157,791,000
Capital Expenditure -61,295,000
Unlevered Free Cash Flow 684,912,000
Current Assets 248,959,000
Current Cash 121,176,000
Current Liabilities 200,257,000
Current Debt 22,844,000
Non-Cash Working Capital (NCWC) -49,630,000
Change in NCWC 39,582,000
EBIT 126,223,000
Tax Provision 114,081,000
Depreciation and Amortization 231,391,000
Capital Expenditure -58,496,000
Unlevered Free Cash Flow 338,700,000
Current Assets 281,630,000
Current Cash 128,835,000
Current Liabilities 275,996,000
Current Debt 33,989,000
Non-Cash Working Capital (NCWC) -89,212,000
Change in NCWC 63,218,000
EBIT 270,052,000
Tax Provision -1,734,000
Depreciation and Amortization 222,211,000
Capital Expenditure -353,269,000
Unlevered Free Cash Flow 202,212,000
Current Assets 261,965,000
Current Cash 114,607,000
Current Liabilities 333,682,000
Current Debt 33,894,000
Non-Cash Working Capital (NCWC) -152,430,000
Change in NCWC -53,460,000
EBIT 409,043,000
Tax Provision 23,875,000
Depreciation and Amortization 180,255,000
Capital Expenditure -579,287,000
Unlevered Free Cash Flow -83,579,269
Current Assets 341,562,000
Current Cash 231,465,000
Current Liabilities 239,161,000
Current Debt 30,094,000
Non-Cash Working Capital (NCWC) -98,970,000
Change in NCWC -14,321,000
EBIT 454,850,000
Tax Provision 134,755,000
Depreciation and Amortization 178,217,000
Capital Expenditure -248,427,000
Unlevered Free Cash Flow 60,434,414

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