MGM Relative Valuation
MGM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, MGM is overvalued; if below, it's undervalued.
Historical Valuation
MGM Resorts International (MGM) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.57 is considered Undervalued compared with the five-year average of 26.00. The fair price of MGM Resorts International (MGM) is between 47.05 to 92.02 according to relative valuation methord. Compared to the current price of 34.12 USD , MGM Resorts International is Undervalued By 27.48%.
Relative Value
Fair Zone
47.05-92.02
Current Price：34.12
27.48%
Undervalued
16.48
PE
1Y
3Y
5Y
8.38
EV/EBITDA
MGM Resorts International. (MGM) has a current EV/EBITDA of 8.38. The 5-year average EV/EBITDA is 10.82. The thresholds are as follows: Strongly Undervalued below 4.94, Undervalued between 4.94 and 7.88, Fairly Valued between 13.76 and 7.88, Overvalued between 13.76 and 16.70, and Strongly Overvalued above 16.70. The current Forward EV/EBITDA of 8.38 falls within the Historic Trend Line -Fairly Valued range.
28.65
EV/EBIT
MGM Resorts International. (MGM) has a current EV/EBIT of 28.65. The 5-year average EV/EBIT is 28.82. The thresholds are as follows: Strongly Undervalued below -46.08, Undervalued between -46.08 and -8.63, Fairly Valued between 66.26 and -8.63, Overvalued between 66.26 and 103.71, and Strongly Overvalued above 103.71. The current Forward EV/EBIT of 28.65 falls within the Historic Trend Line -Fairly Valued range.
0.57
PS
MGM Resorts International. (MGM) has a current PS of 0.57. The 5-year average PS is 1.05. The thresholds are as follows: Strongly Undervalued below 0.11, Undervalued between 0.11 and 0.58, Fairly Valued between 1.52 and 0.58, Overvalued between 1.52 and 1.99, and Strongly Overvalued above 1.99. The current Forward PS of 0.57 falls within the Undervalued range.
3.86
P/OCF
MGM Resorts International. (MGM) has a current P/OCF of 3.86. The 5-year average P/OCF is 8.33. The thresholds are as follows: Strongly Undervalued below -1.03, Undervalued between -1.03 and 3.65, Fairly Valued between 13.00 and 3.65, Overvalued between 13.00 and 17.68, and Strongly Overvalued above 17.68. The current Forward P/OCF of 3.86 falls within the Historic Trend Line -Fairly Valued range.
6.26
P/FCF
MGM Resorts International. (MGM) has a current P/FCF of 6.26. The 5-year average P/FCF is 15.85. The thresholds are as follows: Strongly Undervalued below -11.59, Undervalued between -11.59 and 2.13, Fairly Valued between 29.57 and 2.13, Overvalued between 29.57 and 43.30, and Strongly Overvalued above 43.30. The current Forward P/FCF of 6.26 falls within the Historic Trend Line -Fairly Valued range.
MGM Resorts International (MGM) has a current Price-to-Book (P/B) ratio of 3.71. Compared to its 3-year average P/B ratio of 3.46 , the current P/B ratio is approximately 7.44% higher. Relative to its 5-year average P/B ratio of 3.25, the current P/B ratio is about 14.34% higher. MGM Resorts International (MGM) has a Forward Free Cash Flow (FCF) yield of approximately 13.72%. Compared to its 3-year average FCF yield of 11.25%, the current FCF yield is approximately 21.99% lower. Relative to its 5-year average FCF yield of 7.55% , the current FCF yield is about 81.67% lower.
3.71
P/B
Median3y
3.46
Median5y
3.25
13.72
FCF Yield
Median3y
11.25
Median5y
7.55
Competitors Valuation Multiple
The average P/S ratio for MGM's competitors is 1.39, providing a benchmark for relative valuation. MGM Resorts International Corp (MGM) exhibits a P/S ratio of 0.57, which is -59% above the industry average. Given its robust revenue growth of 1.90%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of MGM decreased by 1.04% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 56.13 to 157.26.
The secondary factor is the Revenue Growth, contributed 1.90%to the performance.
Overall, the performance of MGM in the past 1 year is driven by P/E Change. Which is more unsustainable.
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Frequently Asked Questions
Is MGM Resorts International (MGM) currently overvalued or undervalued?
MGM Resorts International (MGM) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.57 is considered Undervalued compared with the five-year average of 26.00. The fair price of MGM Resorts International (MGM) is between 47.05 to 92.02 according to relative valuation methord. Compared to the current price of 34.12 USD , MGM Resorts International is Undervalued By 27.48% .
What is MGM Resorts International (MGM) fair value?
MGM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of MGM Resorts International (MGM) is between 47.05 to 92.02 according to relative valuation methord.
How does MGM's valuation metrics compare to the industry average?
The average P/S ratio for MGM's competitors is 1.39, providing a benchmark for relative valuation. MGM Resorts International Corp (MGM) exhibits a P/S ratio of 0.57, which is -59.00% above the industry average. Given its robust revenue growth of 1.90%, this premium appears unsustainable.
What is the current P/B ratio for MGM Resorts International (MGM) as of Jan 09 2026?
As of Jan 09 2026, MGM Resorts International (MGM) has a P/B ratio of 3.71. This indicates that the market values MGM at 3.71 times its book value.
What is the current FCF Yield for MGM Resorts International (MGM) as of Jan 09 2026?
As of Jan 09 2026, MGM Resorts International (MGM) has a FCF Yield of 13.72%. This means that for every dollar of MGM Resorts International’s market capitalization, the company generates 13.72 cents in free cash flow.
What is the current Forward P/E ratio for MGM Resorts International (MGM) as of Jan 09 2026?
As of Jan 09 2026, MGM Resorts International (MGM) has a Forward P/E ratio of 16.48. This means the market is willing to pay $16.48 for every dollar of MGM Resorts International’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for MGM Resorts International (MGM) as of Jan 09 2026?
As of Jan 09 2026, MGM Resorts International (MGM) has a Forward P/S ratio of 0.57. This means the market is valuing MGM at $0.57 for every dollar of expected revenue over the next 12 months.