Gambling, Resorts & Casinos · NYSE
Current Price
$36.87
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on MGM Resorts International with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and Macau. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. The company's casino operations include slots and table games, as well as online sports betting and iGaming through BetMGM. As of February 17, 2021, its portfolio consisted of 29 hotel and destination gaming offerings. The company also owns and operates Las Vegas Strip Resorts and Fallen Oak golf course. Its customers include premium gaming customers; leisure and wholesale travel customers; business travelers; and group customers, including conventions, trade associations, and small meetings. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was incorporated in 1986 and is based in Las Vegas, Nevada.
ROIC (TTM)
2.4%
ROE (TTM)
7.0%
FCF Yield
18.36%
Based on trailing twelve-month data, MGM shows a free cash flow per share of N/A and a ROIC of 2.4%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 18.36% are important context metrics when evaluating MGM's stock valuation relative to peers.
The intrinsic value of MGM depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether MGM is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $36.87. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on MGM Resorts International: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Gambling, Resorts & Casinos industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting MGM's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For MGM Resorts International, this means projecting how much free cash flow the Gambling, Resorts & Casinos will produce over the next 5-10 years, then discounting those amounts to today's dollars. MGM's ROIC of 2.4% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For MGM, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
