MGM Resorts Valuation
| MGM Stock | USD 41.09 1.09 2.58% |
At this time, the firm appears to be fairly valued. MGM Resorts International secures a last-minute Real Value of $43.47 per share. The latest price of the firm is $41.09. Our model forecasts the value of MGM Resorts International from inspecting the firm fundamentals such as return on equity of 0.27, and Profit Margin of 0.07 % as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend obtaining undervalued stocks and abandoning overvalued stocks since, at some point future time, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting MGM Resorts' valuation include:
Price Book 3.5335 | Enterprise Value 42.9 B | Enterprise Value Ebitda 15.3447 | Price Sales 0.8355 | Forward PE 20.6186 |
Fairly Valued
Today
Please note that MGM Resorts' price fluctuation is very steady at this time. Calculation of the real value of MGM Resorts International is based on 3 months time horizon. Increasing MGM Resorts' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for MGM Resorts International is useful when determining the fair value of the MGM stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of MGM Resorts. Since MGM Resorts is currently traded on the exchange, buyers and sellers on that exchange determine the market value of MGM Stock. However, MGM Resorts' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 41.09 | Real 43.47 | Target 56.78 | Hype 42.18 |
The real value of MGM Stock, also known as its intrinsic value, is the underlying worth of MGM Resorts International Company, which is reflected in its stock price. It is based on MGM Resorts' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of MGM Resorts' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence MGM Resorts' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of MGM Resorts International helps investors to forecast how MGM stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of MGM Resorts more accurately as focusing exclusively on MGM Resorts' fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use MGM Resorts' intrinsic value based on its ongoing forecasts of MGM Resorts' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against MGM Resorts' closest peers. When choosing an evaluation method for MGM Resorts International, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
MGM Resorts Investments |
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MGM Valuation Trend
Knowing MGM Resorts' actual value is paramount for traders to make sound investment determinations. MGM Resorts' real value is not only important for the investor to make better decisions but also for a more accurate overall view of MGM Resorts' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both MGM Resorts' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
MGM Market Cap
MGM Resorts International is considered to be number one stock in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is now estimated at about 15.09 Billion. MGM Resorts totals roughly 13.54 Billion in market capitalization claiming about 90% of stocks in Consumer Discretionary industry.MGM Resorts Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining MGM Resorts's current stock value. Our valuation model uses many indicators to compare MGM Resorts value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across MGM Resorts competition to find correlations between indicators driving MGM Resorts's intrinsic value. More Info.MGM Resorts International is regarded third in price to earning category among related companies. It is considered to be number one stock in price to book category among related companies fabricating about 0.30 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for MGM Resorts International is roughly 3.34 . As of the 26th of April 2024, Price To Book Ratio is likely to grow to 4.37. Comparative valuation analysis is a catch-all model that can be used if you cannot value MGM Resorts by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for MGM Resorts' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the MGM Resorts' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates MGM Resorts' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in MGM Resorts and how it compares across the competition.
About MGM Resorts Valuation
The stock valuation mechanism determines the current worth of MGM Resorts International on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of MGM Resorts International. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of MGM Resorts International based exclusively on its fundamental and basic technical indicators. By analyzing MGM Resorts's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of MGM Resorts's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of MGM Resorts. We calculate exposure to MGM Resorts's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to MGM Resorts's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 6.8 B | 7.1 B | |
| Pretax Profit Margin | 0.09 | 0.1 | |
| Operating Profit Margin | 0.1 | 0.10 | |
| Net Profit Margin | 0.07 | 0.07 | |
| Gross Profit Margin | 0.42 | 0.30 |
8 Steps to conduct MGM Resorts' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates MGM Resorts' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct MGM Resorts' valuation analysis, follow these 8 steps:- Gather financial information: Obtain MGM Resorts' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine MGM Resorts' revenue streams: Identify MGM Resorts' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research MGM Resorts' industry and market trends, including the size of the market, growth rate, and competition.
- Establish MGM Resorts' growth potential: Evaluate MGM Resorts' management, business model, and growth potential.
- Determine MGM Resorts' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate MGM Resorts' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of MGM Resorts represents a small ownership stake in the entity. As a stockholder of MGM, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
MGM Resorts Dividends Analysis For Valuation
Please note that MGM Resorts has scaled down on payment of dividends at this time. At this time, MGM Resorts' Retained Earnings are very stable compared to the past year. As of the 26th of April 2024, Retained Earnings Total Equity is likely to grow to about 5.8 B, while Price Earnings Ratio is likely to drop 6.97.
There are various types of dividends MGM Resorts can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of MGM shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from MGM Resorts International directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When MGM pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of MGM Resorts by the value of the dividends paid out.
MGM Resorts Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as MGM Resorts does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 358.6 M | |
| Quarterly Earnings Growth Y O Y | 0.342 | |
| Forward Price Earnings | 20.6186 |
MGM Resorts Current Valuation Indicators
Valuation refers to the process of determining the present value of MGM Resorts International and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value MGM we look at many different elements of the entity such as MGM's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. MGM Resorts' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final MGM Resorts' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as MGM Resorts, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use MGM Resorts' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes MGM Resorts' worth.When determining whether MGM Resorts International is a strong investment it is important to analyze MGM Resorts' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact MGM Resorts' future performance. For an informed investment choice regarding MGM Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in MGM Resorts International. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in price. Note that the MGM Resorts International information on this page should be used as a complementary analysis to other MGM Resorts' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Complementary Tools for MGM Stock analysis
When running MGM Resorts' price analysis, check to measure MGM Resorts' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy MGM Resorts is operating at the current time. Most of MGM Resorts' value examination focuses on studying past and present price action to predict the probability of MGM Resorts' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move MGM Resorts' price. Additionally, you may evaluate how the addition of MGM Resorts to your portfolios can decrease your overall portfolio volatility.
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Is MGM Resorts' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of MGM Resorts. If investors know MGM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about MGM Resorts listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.342 | Earnings Share 3.19 | Revenue Per Share 45.414 | Quarterly Revenue Growth 0.219 | Return On Assets 0.0225 |
The market value of MGM Resorts International is measured differently than its book value, which is the value of MGM that is recorded on the company's balance sheet. Investors also form their own opinion of MGM Resorts' value that differs from its market value or its book value, called intrinsic value, which is MGM Resorts' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because MGM Resorts' market value can be influenced by many factors that don't directly affect MGM Resorts' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between MGM Resorts' value and its price as these two are different measures arrived at by different means. Investors typically determine if MGM Resorts is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MGM Resorts' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.