Vail Resorts Stock Intrinsic Value – Vail Resorts’ Returns Seemingly Subdued
August 10, 2023
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They have grown to become the largest ski resort operator in North America and are renowned for their commitment to providing excellent experiences for their guests.
However, their returns seem to be heavily laden with uncertainty at the moment. Recent events have caused the stock prices of Vail Resorts ($NYSE:MTN) to dip and remain so for the time being. The ongoing pandemic has undoubtedly had a profound impact on the company’s income as ski resorts were forced to close, and guests’ travel plans were disrupted. As a result, their returns have seemingly become more subdued than ever before.
Additionally, other factors such as a decrease in the number of vacationers and a lack of new investments may have further exacerbated the decline of Vail Resorts’ returns. Despite the challenging circumstances, however, they are currently attempting to increase their reach by expanding into Australia and New Zealand as well as further developing their existing locations. Overall, while Vail Resorts’ returns may be subdued at the moment, the company is actively working to return to its former glory and is still considered an attractive investment opportunity. Consequently, it will be interesting to observe the results of their efforts in the coming months and years.
Market Price
On Monday, VAIL RESORTS stock opened at $232.1 and closed at $233.0, representing a modest increase of 1.0% over its previous closing price of 230.6. This could be a sign that investor sentiment towards the stock is waning, or that traders are remaining cautious in light of the company’s future prospects. Nonetheless, the stock’s performance over the past week suggests that investors may not be willing to take any drastic measures at this time. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Vail Resorts. More…
| Total Revenues | Net Income | Net Margin |
| 2.89k | 288.03 | 10.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Vail Resorts. More…
| Operations | Investing | Financing |
| 664.4 | -313.61 | -843.66 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Vail Resorts. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.2k | 4.6k | 33.04 |
Key Ratios Snapshot
Some of the financial key ratios for Vail Resorts are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.7% | 25.9% | 20.2% |
| FCF Margin | ROE | ROA |
| 12.9% | 26.6% | 5.9% |
Analysis – Vail Resorts Stock Intrinsic Value
At GoodWhale, we have conducted an analysis of VAIL RESORTS financials and have come up with the fair value of its shares. According to our proprietary Valuation Line, the fair value of VAIL RESORTS share is around $370.5. However, VAIL RESORTS stock is currently trading at $233.0, significantly undervalued by 37.1%. This presents a good opportunity for investors who are looking for value investments. We believe that with long-term investment, investors can benefit from this undervaluation and earn good returns on their investments. More…
Peers
The competition between Vail Resorts Inc and its competitors, Genting Malaysia Bhd, Hilton Grand Vacations Inc, and PT Bukit Uluwatu Villa Tbk, is fierce. Each company is vying for a larger share of the lucrative ski resort market, offering customers an array of services and amenities to attract them to their resorts. As the industry continues to grow, the competition between these companies is expected to increase even more.
– Genting Malaysia Bhd ($KLSE:4715)
Genting Malaysia Bhd is a leading integrated leisure, entertainment and hospitality group in Malaysia. The company is engaged in the development and operation of casinos, resorts, hotels, restaurants and other related businesses. As of 2022, Genting Malaysia Bhd has a market capitalization of 14.96 billion and a Return on Equity of 3.26%. Market capitalization is a measure of the company’s total value, determined by multiplying its total number of shares outstanding by its stock price. Meanwhile, Return on Equity (ROE) is a measure of a company’s profitability that indicates how well it uses the funds it has available to generate profits.
– Hilton Grand Vacations Inc ($NYSE:HGV)
Hilton Grand Vacations Inc is a leading global timeshare company that specializes in the development, marketing, and management of vacation ownership resorts. As of 2022, the company has a market capitalization of 4.74 billion dollars, indicating its strong financial performance and impressive market position. Additionally, it boasts an impressive Return on Equity of 19.1%, demonstrating the company’s successful management of its equity investments. In addition to its size and financial performance, Hilton Grand Vacations Inc is renowned for its excellent customer service and quality products.
– PT Bukit Uluwatu Villa Tbk ($IDX:BUVA)
PT Bukit Uluwatu Villa Tbk is a hospitality company that operates a chain of luxury villas and resorts in Indonesia. The company has a market cap of 408.68B as of 2022, making it one of the largest hospitality companies in the country. Its Return on Equity (ROE) of -2.47% indicates that its current profitability is below the industry average and could be improved upon. The company has been focusing on expanding its presence and improving its services to strengthen its presence in the market, which could help improve its ROE and market cap in the future.
Summary
Vail Resorts is a premier investment opportunity. The company is renowned for its world-class ski resorts and robust hospitality services. Its commitment to innovation and excellence has enabled it to generate strong returns for shareholders. Analyzing the company’s financials reveals a healthy balance sheet, solid operating margins, and ever-increasing revenue growth.
In addition, the company is expanding globally and leveraging technology to create more efficient operations.
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