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Las Vegas Sands Corporation: Betting on Growth  
Product Ref: 07/333C Company: Las Vegas Sands Corporation

Product Type: Case Industry: Hotels, Restaurants, Leisure

Related Product(s): Teaching Note
In May 2004, Las Vegas Sands Corp. became the first to open a Western-style casino in the Chinese enclave of Macau. Run and owned in majority by Sheldon Adelson, Nevada based Las Vegas Sands Corp. had pioneered the convention-driven business model in the Las Vegas gaming industry. As one of three new gaming licence holders in Macau, Adelson was set to replicate the model in Macau and break the monopoly held by Stanley Hoˇ¦s Sociedade de Turismo e Diversoes de Macau (STDM) for more than 40 years. By May 2005, Macau was experiencing construction frenzy. Billions of dollars worth of casinos, convention venues and hotels were under development. Las Vegas Sands Corp. was one of the main instigators, with a US$1.8 billion casino resort under construction as well as an interest in six hotel casino complexes. The company was also expanding its Las Vegas business with a US$1.6 billion casino resort next to its existing Las Vegas Venetian development.

In this case, the student is asked to step into the shoes of an analyst and prepare a valuation of Las Vegas Sands Corp. However, unlike a more traditional valuation of a company operating in an established industry, a valuation of Las Vegas Sands Corp. cannot be based on its historical performance. Instead, students have to work with estimated future revenue streams of Las Vegas Sandsˇ¦ properties, many of which are still under construction.
Functional Area : Finance & Investments

Issues: Provide an overview of the Las Vegas and Macau gaming industry, Valuation-of-the-parts for the Las Vegas Sands Corp., financial analysis of Las Vegas Sands Corp., Valuation of properties under construction in a fast developing market.
Length: Text: 13 pages
Exhibits: 16 pages
Country: Macau SAR
United States of America

Pub. Year: 2007 Level of Difficulty: 3
This product type is available in the following language(s):      English
Related Information: Valuation, sum of the parts, financial analysis, Las Vegas, Macau, gaming, gambling, investment banking, Stanley Ho, Sheldon Adelson, The Venetian, entertainment, trade shows, expositions, conferences, hotel, casino, Cotai strip, high rollers, Melco, Wynn
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