Melco Resorts & Entertainment Limited

LSE:0A2P Stock Report

Market Cap: US$2.6b

Melco Resorts & Entertainment Valuation

Is 0A2P undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0A2P when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0A2P ($6.14) is trading below our estimate of fair value ($8.43)

Significantly Below Fair Value: 0A2P is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0A2P?

Key metric: As 0A2P is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0A2P. This is calculated by dividing 0A2P's market cap by their current revenue.
What is 0A2P's PS Ratio?
PS Ratio0.6x
SalesUS$4.54b
Market CapUS$2.58b

Price to Sales Ratio vs Peers

How does 0A2P's PS Ratio compare to its peers?

The above table shows the PS ratio for 0A2P vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.8x
PTEC Playtech
1.5x3.1%UK£2.2b
ENT Entain
0.9x4.6%UK£4.5b
EVOK Evoke
0.2x5.8%UK£273.8m
RNK Rank Group
0.5x5.8%UK£396.3m
0A2P Melco Resorts & Entertainment
0.6x7.2%US$2.6b

Price-To-Sales vs Peers: 0A2P is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (0.8x).

Price to Sales Ratio vs Industry

How does 0A2P's PS Ratio compare vs other companies in the GB Hospitality Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
TRC Revel Collective
0.05x-3.1%US$8.95m
NGHT Nightcap
0.1xn/aUS$8.62m
COM Comptoir Group
0.1xn/aUS$5.86m
TAST Tasty
0.04x-15.3%US$2.36m
0A2P 0.6xIndustry Avg. 1.0xNo. of Companies7PS00.61.21.82.43+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0A2P is good value based on its Price-To-Sales Ratio (0.6x) compared to the UK Hospitality industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is 0A2P's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0A2P PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ratio1.5x

Price-To-Sales vs Fair Ratio: 0A2P is good value based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (1.5x).

Analyst Price Targets

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

The above table shows the analyst 0A2P forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$6.14
US$9.30
+51.5%
14.0%US$11.50US$7.00n/a14
Dec ’25US$6.45
US$9.43
+46.2%
14.2%US$11.50US$7.00n/a14
Nov ’25US$6.70
US$9.39
+40.2%
15.0%US$11.50US$6.00n/a14
Oct ’25US$8.04
US$9.02
+12.2%
19.4%US$11.50US$6.00n/a14
Sep ’25US$5.06
US$9.29
+83.7%
21.3%US$14.00US$6.00n/a14
Aug ’25US$5.19
US$10.21
+96.9%
19.3%US$14.00US$7.00n/a14
Jul ’25US$6.99
US$10.69
+53.1%
14.6%US$14.00US$7.60n/a14
Jun ’25US$7.89
US$10.51
+33.3%
15.2%US$14.00US$7.60n/a14
May ’25US$6.58
US$10.21
+55.4%
18.0%US$14.00US$7.50n/a14
Apr ’25US$7.23
US$11.30
+56.2%
19.3%US$15.00US$8.30n/a13
Mar ’25US$7.06
US$11.52
+63.3%
16.7%US$15.00US$9.20n/a13
Feb ’25US$8.15
US$11.87
+45.7%
15.7%US$15.00US$8.60n/a13
Jan ’25US$8.94
US$12.21
+36.6%
14.5%US$15.00US$8.60n/a13
Dec ’24US$7.00
US$12.95
+85.2%
19.6%US$17.70US$8.60US$6.4511
Nov ’24US$7.99
US$16.41
+105.5%
14.5%US$20.00US$13.10US$6.7011
Oct ’24US$9.78
US$16.40
+67.8%
18.4%US$20.00US$9.70US$8.0412
Sep ’24US$11.13
US$16.54
+48.6%
17.7%US$20.00US$9.70US$5.0613
Aug ’24US$13.25
US$16.50
+24.6%
17.1%US$19.90US$9.70US$5.1913
Jul ’24US$12.09
US$16.26
+34.5%
17.4%US$19.50US$9.70US$6.9912
Jun ’24US$10.86
US$16.03
+47.6%
17.6%US$19.80US$9.70US$7.8913
May ’24US$13.53
US$15.10
+11.6%
27.2%US$19.80US$4.60US$6.5813
Apr ’24US$12.77
US$14.79
+15.9%
27.4%US$19.60US$4.60US$7.2313
Mar ’24US$13.60
US$14.04
+3.2%
32.1%US$19.80US$4.60US$7.0614
Feb ’24US$13.60
US$13.31
-2.1%
31.7%US$19.80US$4.60US$8.1514
Jan ’24US$11.41
US$10.01
-12.3%
31.8%US$14.00US$4.60US$8.9414
Dec ’23US$8.67
US$9.29
+7.2%
30.0%US$13.70US$4.60US$7.0014

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/21 11:06
End of Day Share Price 2024/12/19 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Melco Resorts & Entertainment Limited is covered by 47 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David BainAegis Capital Corporation
Phoebe TseBarclays
D. S. KimBNP Paribas Securities (Asia)