Las Vegas Sands Still ‘Grossly Undervalued,’ Says Analyst

Stock’s recent resurgence extends on back of solid Q2 results

Analyst says it’s still “grossly undervalued”

Las Vegas Sands Sees Strong Macau and Singapore Results

The company’s shares have surged nearly 50% over the past 90 days, but one analyst believes that the casino equity remains attractively valued.

Despite the recent rally, Sands’ stock is still modestly in the red on a year-to-date basis. However, second-quarter data could go a long way toward alleviating concerns about the cadence of recovery in Macau.

The Analyst’s Take

In a recent note, Stifel analyst Steven Wieczynski reiterated his bullish stance on Las Vegas Sands, citing strong Macau and Singapore results as key drivers of the stock’s performance.

Wieczynski notes that while Sands’ Macau earnings before interest, taxes, depreciation, and amortization (EBTIDA) base should grow in line with its spending, he argues that investors are underestimating the full magnitude of the Macau market.

The Stock’s Valuation

Wieczynski believes that Sands is trading at a discount relative to historical norms and Macau estimates. The stock’s price-to-EBITDA (P/E) ratio is currently 8.5x, which is lower than its historical range of 12-14x.

He notes that investors are getting the operator’s Macau portfolio at a steep discount, with the Singapore integrated resort alone accounting for approximately $35 of Sands’ share price.

The Cash Position

Sands concluded the second quarter with $3.45 billion in cash on hand and has $1.2 billion remaining on a $2 billion buyback program announced earlier this year.

He believes that the potential for elevated shareholder rewards and the possibility of Macau’s rebound extending are among the factors supporting the Sands stock thesis.

Conclusion

Las Vegas Sands remains a compelling investment opportunity despite its recent rally. The company’s strong Macau and Singapore results, combined with its solid cash position, make it an attractive choice for investors looking for new ideas that should see positive estimate revisions in 2H25.