MGM Resorts International Valuation

Is M1GM34 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of M1GM34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: M1GM34 (R$222.2) is trading below our estimate of fair value (R$283.83)

Significantly Below Fair Value: M1GM34 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for M1GM34?

Key metric: As M1GM34 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for M1GM34. This is calculated by dividing M1GM34's market cap by their current earnings.
What is M1GM34's PE Ratio?
PE Ratio	12.3x
Earnings	US$903.35m
Market Cap	US$11.18b

M1GM34 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.4x
Enterprise Value/EBITDA	16.1x
PEG Ratio	1.3x

Price to Earnings Ratio vs Peers

How does M1GM34's PE Ratio compare to its peers?

The above table shows the PE ratio for M1GM34 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	19.3x
SMFT3 Smartfit Escola de Ginástica e Dança	12.5x	15.4%	R$12.1b
CHDN Churchill Downs	25.1x	16.3%	US$10.3b
WYNN Wynn Resorts	10.5x	-4.7%	US$10.0b
LNW Light & Wonder	29.1x	22.1%	US$8.6b
M1GM34 MGM Resorts International	12.3x	9.2%	R$11.2b

Price-To-Earnings vs Peers: M1GM34 is good value based on its Price-To-Earnings Ratio (12.3x) compared to the peer average (19.3x).

Price to Earnings Ratio vs Industry

How does M1GM34's PE Ratio compare vs other companies in the South American Hospitality Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: M1GM34 is good value based on its Price-To-Earnings Ratio (12.3x) compared to the South American Hospitality industry average (17.1x).

Price to Earnings Ratio vs Fair Ratio

What is M1GM34's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

M1GM34 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate M1GM34's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.