MGM Resorts International (MGM) Stock Valuation — PE Analysis
Gambling, Resorts & Casinos · NYSE
Current Price
$39.89
PE Ratio (TTM)
23.9x
Intrinsic Value
$33.33
-19.7% margin of safety
COMPETITIVE MOAT
↑Iconic Brand & Prime Real Estate
MGM possesses globally recognized brands and prime real estate in desirable locations like Las Vegas. This attracts high-value customers and limits new entrants.
↑Loyalty Programs & Customer Data
Extensive loyalty programs foster repeat business and generate valuable customer data. This allows for personalized offers and targeted marketing, increasing customer retention.
↑Integrated Resort Ecosystem
MGM's integrated resorts offer a comprehensive entertainment experience, including gaming, dining, and shows. This creates a sticky ecosystem that encourages guests to spend more time and money on-site.
INVESTMENT RISKS
↓Regulatory Scrutiny & Compliance Costs
The gambling industry is heavily regulated, leading to significant compliance costs and potential fines. Changes in regulations can impact operational flexibility and profitability.
↓Economic Sensitivity & Discretionary Spending
MGM's revenue is highly dependent on discretionary consumer spending, making it vulnerable to economic downturns. Recessions can lead to reduced travel and entertainment budgets.
↓Cybersecurity Threats & Data Breaches
As a large operator of customer data, MGM is a prime target for cyberattacks. Data breaches can result in significant financial losses and reputational damage.
Base case
MGM base case PE valuation
At a current price of $39.89, the base case PE valuation puts MGM fair value near $33.33 per share. That figure assumes 1.5% yearly earnings growth, a target PE multiple of 23.74x, and a 10% discount rate.
Intrinsic Value
$33.33
Margin of safety
-19.7%
Expected annual return
-3.5%
Base case assumptions: 1.5% annual earnings growth, 23.74x target PE, 10% discount rate, 5 year projection. Data as of 2026-09-11.
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)
23.9x
PEG Ratio
n/m
Earnings Yield
4.21%
ROE (TTM)
17.0%
Revenue/Share (TTM)
$69.92
Debt/Equity
11.87x
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 23.9x combined with a PEG ratio of -2.73 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 (23.9x) against the Gambling, Resorts & Casinos median to assess relative pricing, (2) check the PEG ratio (-2.73) 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 -2.73, calculated by dividing the PE ratio (23.9x) 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 MGM, with a strong ROE of 17.0%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. 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 2026-09-11. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.