MGM China Holdings Valuation

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

MCHV.Y ($14.48) is trading below our estimate of [[fair value]] ($22.42)

Is MCHV.Y 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 MCHV.Y when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MCHV.Y ($14.48) is trading below our estimate of fair value ($22.42)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MCHV.Y?

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

The above table shows the Price to Earnings ratio for MCHV.Y. This is calculated by dividing MCHV.Y's market cap by their current earnings.
What is MCHV.Y's PE Ratio?
PE Ratio	8x
Earnings	HK$4.50b
Market Cap	HK$35.91b

MCHV.Y 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	1.8x
Enterprise Value/EBITDA	6.8x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

How does MCHV.Y's PE Ratio compare to its peers?

The above table shows the PE ratio for MCHV.Y 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	35.5x
SRAD Sportradar Group	82.7x	34.2%	US$5.1b
RRR Red Rock Resorts	18.1x	11.3%	US$5.3b
WYNN Wynn Resorts	10.3x	-4.7%	US$9.9b
IGT International Game Technology	30.7x	20.3%	US$3.9b
MCHV.Y MGM China Holdings	8x	6.5%	US$35.9b

Price-To-Earnings vs Peers: MCHV.Y is good value based on its Price-To-Earnings Ratio (8x) compared to the peer average (35.5x).

Price to Earnings Ratio vs Industry

How does MCHV.Y's PE Ratio compare vs other companies in the US Hospitality Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
THRS.F Agility Real Estate	1.7x	n/a	US$2.05m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: MCHV.Y is good value based on its Price-To-Earnings Ratio (8x) compared to the US Hospitality industry average (24.4x).

Price to Earnings Ratio vs Fair Ratio

What is MCHV.Y'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.

MCHV.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MCHV.Y'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.