MGM PE Ratio & Valuation,Is MGM Overvalued

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 0.58 is considered Undervalued compared with the five-year average of 25.43. The fair price of MGM Resorts International (MGM) is between 51.03 to 99.85 according to relative valuation methord. Compared to the current price of 37.43 USD , MGM Resorts International is Undervalued By 26.66%.

Relative Value

Fair Zone

51.03-99.85

Current Price：37.43

26.66%

Undervalued

16.55

8.42

EV/EBITDA

MGM Resorts International. (MGM) has a current EV/EBITDA of 8.42. The 5-year average EV/EBITDA is 11.05. The thresholds are as follows: Strongly Undervalued below 3.96, Undervalued between 3.96 and 7.50, Fairly Valued between 14.59 and 7.50, Overvalued between 14.59 and 18.13, and Strongly Overvalued above 18.13. The current Forward EV/EBITDA of 8.42 falls within the Historic Trend Line -Fairly Valued range.

28.83

EV/EBIT

MGM Resorts International. (MGM) has a current EV/EBIT of 28.83. The 5-year average EV/EBIT is 28.04. The thresholds are as follows: Strongly Undervalued below -48.48, Undervalued between -48.48 and -10.22, Fairly Valued between 66.30 and -10.22, Overvalued between 66.30 and 104.56, and Strongly Overvalued above 104.56. The current Forward EV/EBIT of 28.83 falls within the Historic Trend Line -Fairly Valued range.

0.58

MGM Resorts International. (MGM) has a current PS of 0.58. The 5-year average PS is 1.07. The thresholds are as follows: Strongly Undervalued below 0.12, Undervalued between 0.12 and 0.59, Fairly Valued between 1.54 and 0.59, Overvalued between 1.54 and 2.02, and Strongly Overvalued above 2.02. The current Forward PS of 0.58 falls within the Undervalued range.

3.96

P/OCF

MGM Resorts International. (MGM) has a current P/OCF of 3.96. The 5-year average P/OCF is 11.62. The thresholds are as follows: Strongly Undervalued below -60.82, Undervalued between -60.82 and -24.60, Fairly Valued between 47.85 and -24.60, Overvalued between 47.85 and 84.07, and Strongly Overvalued above 84.07. The current Forward P/OCF of 3.96 falls within the Historic Trend Line -Fairly Valued range.

6.41

P/FCF

MGM Resorts International. (MGM) has a current P/FCF of 6.41. The 5-year average P/FCF is 15.15. The thresholds are as follows: Strongly Undervalued below -17.75, Undervalued between -17.75 and -1.30, Fairly Valued between 31.60 and -1.30, Overvalued between 31.60 and 48.05, and Strongly Overvalued above 48.05. The current Forward P/FCF of 6.41 falls within the Historic Trend Line -Fairly Valued range.

MGM Resorts International (MGM) has a current Price-to-Book (P/B) ratio of 3.80. Compared to its 3-year average P/B ratio of 3.44 , the current P/B ratio is approximately 10.62% higher. Relative to its 5-year average P/B ratio of 3.23, the current P/B ratio is about 17.74% higher. MGM Resorts International (MGM) has a Forward Free Cash Flow (FCF) yield of approximately 13.39%. Compared to its 3-year average FCF yield of 11.16%, the current FCF yield is approximately 19.94% lower. Relative to its 5-year average FCF yield of 7.29% , the current FCF yield is about 83.68% lower.

3.80

P/B

Median3y

3.44

Median5y

3.23

13.39

FCF Yield

Median3y

11.16

Median5y

7.29

Competitors Valuation Multiple

The average P/S ratio for MGM's competitors is , providing a benchmark for relative valuation. MGM Resorts International Corp (MGM) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 1.90%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of MGM increased by 7.88% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 55.73 to 161.09.

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.

1.90%

4.17B → 4.25B

Revenue Growth

-183.08%

5.85 → -4.86

Margin Expansion

189.06%

55.73 → 161.09

P/E Change

7.88%

34.65 → 37.38

Mkt Cap Growth

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Frequently Asked Questions

Is MGM Resorts International (MGM) currently overvalued or undervalued?

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 51.03 to 99.85 according to relative valuation methord.

How does MGM's valuation metrics compare to the industry average?

What is the current P/B ratio for MGM Resorts International (MGM) as of Dec 16 2025?

As of Dec 16 2025, MGM Resorts International (MGM) has a P/B ratio of 3.80. This indicates that the market values MGM at 3.80 times its book value.

What is the current FCF Yield for MGM Resorts International (MGM) as of Dec 16 2025?

As of Dec 16 2025, MGM Resorts International (MGM) has a FCF Yield of 13.39%. This means that for every dollar of MGM Resorts International’s market capitalization, the company generates 13.39 cents in free cash flow.

What is the current Forward P/E ratio for MGM Resorts International (MGM) as of Dec 16 2025?

As of Dec 16 2025, MGM Resorts International (MGM) has a Forward P/E ratio of 16.14. This means the market is willing to pay $16.14 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 Dec 16 2025?

As of Dec 16 2025, MGM Resorts International (MGM) has a Forward P/S ratio of 0.58. This means the market is valuing MGM at $0.58 for every dollar of expected revenue over the next 12 months.

MGM Valuation