MGM Resorts operates 15 wholly owned resorts in the United States, MGM Macau resort and casino in China, as well as develops a gaming resort in Cotai, Macau. The company was founded in 1986 and is based in Las Vegas, Nevada.
MGM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for MGM Resorts International with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that MGM Resorts International ranked in the 68th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 224.67% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of MGM Resorts International, consider:
The company has produced more trailing twelve month cash flow than 88.21% of its sector Consumer Cyclical.
32% of the company's capital comes from equity, which is greater than just 19.55% of stocks in our cash flow based forecasting set.
MGM Resorts International's weighted average cost of capital (WACC) is 5%; for context, that number is higher than just 2.43% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ARKR, SIX, CTRN, BURL, and HOG can be thought of as valuation peers to MGM, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.