MGM Resorts International (MGM) Stock Valuation — PE Analysis
Gambling, Resorts & Casinos · NYSE
Current Price
$48.97
PE Ratio (TTM)
68.7x
Intrinsic Value
$25.45
-92.4% margin of safety
COMPETITIVE MOAT
↑Iconic Las Vegas Strip Presence
MGM owns prime real estate on the Las Vegas Strip, a globally recognized entertainment hub. This physical dominance creates a significant barrier to entry for new competitors.
↑BetMGM Digital Expansion
BetMGM's aggressive digital strategy, including significant bonus bet promotions for major sporting events, is expanding MGM's reach beyond its physical casinos. This diversifies revenue streams and captures a younger demographic.
↑Brand Recognition and Loyalty
MGM Resorts has cultivated strong brand recognition and customer loyalty through its integrated resort model. This allows for cross-selling of services and repeat visitation.
INVESTMENT RISKS
↓Competitive Landscape Intensifies
MGM faces intense competition from both established casino operators like Wynn and Caesars, and emerging digital gambling platforms. This can pressure margins and market share.
↓Potential Acquisition Uncertainty
Barry Diller's bid for the remaining portion of MGM introduces uncertainty regarding future strategy and ownership structure. This could impact operational decisions and shareholder value.
↓Valuation Concerns
Despite recent stock declines, some analysts view MGM as overvalued. This suggests potential downside risk if growth expectations are not met or if market sentiment shifts.
Base case
MGM base case PE valuation
A base case PE valuation for MGM estimates a fair value of about $25.45 per share, against a current price of $48.97. The model assumes 0.6% annual earnings growth, a 50x target PE multiple, and a 10% discount rate.
Intrinsic Value
$25.45
Margin of safety
-92.4%
Expected annual return
-12.3%
Base case assumptions: 0.6% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the MGM PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for MGM Resorts International respond.
Open PE Calculator for MGMCompany Overview
MGM Resorts International, through its various divisions, manages and possesses casino, lodging, and entertainment complexes across the United States and Macau. The company's operations are segmented into three main areas: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its resort properties offer a comprehensive suite of amenities including gaming facilities, accommodation, convention spaces, dining options, entertainment venues, retail outlets, and more. Beyond traditional slots and table games, its casino activities also encompass online sports wagering and iGaming through its BetMGM platform. As of February 17, 2021, its extensive portfolio comprised 29 distinct hotel and gaming destinations. Notable assets include its properties on the Las Vegas Strip and the Fallen Oak golf course. The company caters to a diverse clientele, including high-stakes gamblers, vacationers, wholesale travel groups, business travelers, and organizational clients such as conventions, trade groups, and small conferences. Originally known as MGM MIRAGE, the firm rebranded to MGM Resorts International in June 2010. Established in 1986, MGM Resorts International is headquartered in Las Vegas, Nevada.
Financial Metrics — MGM PE Stock Valuation Data
PE Ratio (TTM)
68.7x
PEG Ratio
n/m
Earnings Yield
1.46%
ROE (TTM)
7.0%
Revenue/Share (TTM)
$69.11
Debt/Equity
12.88x
Frequently Asked Questions
What is the PE ratio of MGM?
The trailing twelve-month PE ratio of MGM reflects how much investors pay per dollar of MGM Resorts International's earnings. This metric is most useful when compared to Gambling, Resorts & Casinos peers and the company's own historical range.
Is MGM overvalued based on PE ratio?
MGM's PE of 68.7x combined with a PEG ratio of -1.02 provides a growth-adjusted perspective. MGM has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Gambling, Resorts & Casinos, a DCF analysis may be more appropriate.
How do I value MGM stock using PE ratio?
To value MGM Resorts International using PE: (1) Compare the current PE (68.7x) against the Gambling, Resorts & Casinos median to assess relative pricing, (2) check the PEG ratio (-1.02) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of MGM?
MGM's PEG ratio is -1.02, calculated by dividing the PE ratio (68.7x) by the expected earnings growth rate. Because MGM has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for MGM stock valuation?
PE ratio gives a quick relative read — how MGM is priced versus Gambling, Resorts & Casinos peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See MGM DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Cyclical valuationsP/E and DCF value MGM with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.