MGM Valuation

MGM Resorts International

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34.180

-0.53(-1.527%)1D

Overview
Forecast
Valuation
Earnings

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 0.55 is considered Undervalued compared with the five-year average of 23.76. The fair price of MGM Resorts International (MGM) is between 54.01 to 101.10 according to relative valuation methord. Compared to the current price of 34.18 USD , MGM Resorts International is Undervalued By 36.72%.

Relative Value

Fair Zone

54.01-101.10

Current Price：34.18

36.72%

Undervalued

14.18

Trailing

Forward

8.13

EV/EBITDA

MGM Resorts International. (MGM) has a current EV/EBITDA of 8.13. The 5-year average EV/EBITDA is 13.23. The thresholds are as follows: Strongly Undervalued below -3.42, Undervalued between -3.42 and 4.91, Fairly Valued between 21.55 and 4.91, Overvalued between 21.55 and 29.88, and Strongly Overvalued above 29.88. The current Forward EV/EBITDA of 8.13 falls within the Historic Trend Line -Fairly Valued range.

25.13

EV/EBIT

MGM Resorts International. (MGM) has a current EV/EBIT of 25.13. The 5-year average EV/EBIT is 22.88. The thresholds are as follows: Strongly Undervalued below -62.74, Undervalued between -62.74 and -19.93, Fairly Valued between 65.68 and -19.93, Overvalued between 65.68 and 108.49, and Strongly Overvalued above 108.49. The current Forward EV/EBIT of 25.13 falls within the Historic Trend Line -Fairly Valued range.

0.55

MGM Resorts International. (MGM) has a current PS of 0.55. The 5-year average PS is 1.14. The thresholds are as follows: Strongly Undervalued below 0.20, Undervalued between 0.20 and 0.67, Fairly Valued between 1.62 and 0.67, Overvalued between 1.62 and 2.09, and Strongly Overvalued above 2.09. The current Forward PS of 0.55 falls within the Undervalued range.

4.06

P/OCF

MGM Resorts International. (MGM) has a current P/OCF of 4.06. The 5-year average P/OCF is 24.04. The thresholds are as follows: Strongly Undervalued below -126.30, Undervalued between -126.30 and -51.13, Fairly Valued between 99.21 and -51.13, Overvalued between 99.21 and 174.38, and Strongly Overvalued above 174.38. The current Forward P/OCF of 4.06 falls within the Historic Trend Line -Fairly Valued range.

6.23

P/FCF

MGM Resorts International. (MGM) has a current P/FCF of 6.23. The 5-year average P/FCF is 11.37. The thresholds are as follows: Strongly Undervalued below -36.90, Undervalued between -36.90 and -12.77, Fairly Valued between 35.50 and -12.77, Overvalued between 35.50 and 59.63, and Strongly Overvalued above 59.63. The current Forward P/FCF of 6.23 falls within the Historic Trend Line -Fairly Valued range.

MGM Resorts International (MGM) has a current Price-to-Book (P/B) ratio of 3.21. Compared to its 3-year average P/B ratio of 3.35 , the current P/B ratio is approximately -4.00% higher. Relative to its 5-year average P/B ratio of 3.11, the current P/B ratio is about 3.35% higher. MGM Resorts International (MGM) has a Forward Free Cash Flow (FCF) yield of approximately 13.56%. Compared to its 3-year average FCF yield of 10.57%, the current FCF yield is approximately 28.24% lower. Relative to its 5-year average FCF yield of 5.59% , the current FCF yield is about 142.61% lower.

3.21

P/B

Median3y

3.35

Median5y

3.11

13.56

FCF Yield

Median3y

10.57

Median5y

5.59

Competitors Valuation Multiple

The average P/S ratio for MGM's competitors is 1.43, providing a benchmark for relative valuation. MGM Resorts International Corp (MGM) exhibits a P/S ratio of 0.55, which is -61.73% above the industry average. Given its robust revenue growth of 2.07%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

MGM.N

MGM Resorts International

Caesars Entertainment Inc

0.44

2.72%

5.00B

Performance Decomposition

Market capitalization of MGM decreased by 7.66% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 12.77 to 19.07.

The secondary factor is the Revenue Growth, contributed 2.07%to the performance.

Overall, the performance of MGM in the past 1 year is driven by P/E Change. Which is more unsustainable.

2.07%

4.32B → 4.40B

Revenue Growth

-59.08%

6.55 → 2.68

Margin Expansion

49.35%

12.77 → 19.07

P/E Change

-7.66%