MGM Price Forecast Based on Dividend Discount Model

For dividend yielding stocks, the Dividend Discount Model (DDM) is a common valuation tool; it attempts to extrapolate a fair share price based primarily on the dividend the stock provides relative to a number of other quantiative aspects of its business. Regarding MGM Resorts International, the dividend discount model StockNews created for the company implies a negative return of 37.57%. Digging deeper, the aspects of MGM Resorts International's dividend discount model that we found most interesting were:

• MGM Resorts International's market cap of $6 billion US dollars puts it in the large-sized market cap class; here, it has a lower equity discount rate than 3.53% of stocks.
• Beta tells us how volatile a stock's price is relative to the broader equity index; as for MGM, approximately merely 2.25% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.
• In comparison to other stocks in the large-sized revenue class, where its estimated gain based on our dividend discount model price relative to its current share price is greater than merely 23.14% of companies in the same revenue class.

MGM Dividends vs. Peers