U.S. markets close in 6 hours 16 minutes
  • S&P 500

    4,267.13
    +25.29 (+0.60%)
     
  • Dow 30

    34,149.98
    +275.74 (+0.81%)
     
  • Nasdaq

    14,380.01
    +108.28 (+0.76%)
     
  • Russell 2000

    2,303.47
    +7.52 (+0.33%)
     
  • Crude Oil

    72.65
    -0.43 (-0.59%)
     
  • Gold

    1,784.40
    +1.00 (+0.06%)
     
  • Silver

    26.17
    +0.06 (+0.23%)
     
  • EUR/USD

    1.1956
    +0.0023 (+0.19%)
     
  • 10-Yr Bond

    1.4900
    +0.0030 (+0.20%)
     
  • GBP/USD

    1.3929
    -0.0035 (-0.25%)
     
  • USD/JPY

    110.7530
    -0.2090 (-0.19%)
     
  • BTC-USD

    33,982.01
    -181.72 (-0.53%)
     
  • CMC Crypto 200

    818.63
    +32.01 (+4.07%)
     
  • FTSE 100

    7,108.01
    +33.95 (+0.48%)
     
  • Nikkei 225

    28,875.23
    +0.34 (+0.00%)
     

Is Las Vegas Sands Corp. (NYSE:LVS) Potentially Undervalued?

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

Today we're going to take a look at the well-established Las Vegas Sands Corp. (NYSE:LVS). The company's stock received a lot of attention from a substantial price increase on the NYSE over the last few months. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine Las Vegas Sands’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Las Vegas Sands

Is Las Vegas Sands still cheap?

Good news, investors! Las Vegas Sands is still a bargain right now. According to my valuation, the intrinsic value for the stock is $90.58, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because Las Vegas Sands’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Can we expect growth from Las Vegas Sands?

earnings-and-revenue-growth
earnings-and-revenue-growth

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. In Las Vegas Sands' case, its revenues over the next couple of years are expected to double, indicating an incredibly optimistic future ahead. If expense does not increase by the same rate, or higher, this top line growth should lead to stronger cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since LVS is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on LVS for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy LVS. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. Case in point: We've spotted 1 warning sign for Las Vegas Sands you should be aware of.

If you are no longer interested in Las Vegas Sands, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.