MGM Resorts International (MGM): Evaluating Valuation Following Strong BetMGM iGaming Results and Upbeat 2025 Outlook

MGM Resorts International (NYSE:MGM) shares saw renewed interest after its BetMGM joint venture reported strong third-quarter results and raised full-year guidance. This was driven by robust growth in iGaming and online sports revenue.

See our latest analysis for MGM Resorts International.

While MGM Resorts International’s BetMGM news gave shares a brief boost, the company’s 1-year total shareholder return of -19.4% highlights a challenging period marked by softening investor optimism and ongoing debt concerns. Despite moments of momentum from digital gaming success, the wider trend has seen the share price slip. The stock is now hovering at $32.17 and trailing both the market and sector peers over the past year.

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With the share price lagging and analysts forecasting considerable upside, the key question is whether MGM Resorts International is trading at a bargain or if the market is already accounting for all future growth. Is this a compelling entry point, or has optimism already been priced in?

Most Popular Narrative: 32.9% Undervalued

The narrative consensus sets a fair value nearly a third higher than the current share price of $32.17, suggesting significant price recovery potential if projections hold true. The valuation hinges on ambitious growth from fresh revenue streams and improved profit margins. What exactly drives this bold outlook?

Ongoing capital investments in property upgrades, high-end experiential offerings (such as VIP suites, new luxury villas, and exclusive partnerships like Marriott), and strategic renovations are positioned to enhance pricing power and drive RevPAR (revenue per available room). These initiatives aim to support long-term earnings growth and improve profitability per visitor.

Read the complete narrative.

Want to know what powers this valuation? Uncover the big assumptions, such as ambitious profit targets and a major shift in where revenue will come from. Are you surprised which business lines are set to lead future growth? See for yourself why analysts are betting on these projections.

Result: Fair Value of $47.92 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, potential setbacks such as sluggish Las Vegas visitation or higher-than-expected capital costs could quickly challenge MGM’s current outlook and future growth story.

Find out about the key risks to this MGM Resorts International narrative.

Build Your Own MGM Resorts International Narrative

If you think there’s another angle or want to shape your own viewpoint, it’s quick and easy to dive in and create your own perspective: Do it your way

A great starting point for your MGM Resorts International research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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