2 models fit MGM Resorts International Common Stock and they disagree: 0 of 2 land within 15% of the average.
Two or more of our models back this value.
Discount(i)
Valued as a cyclical company: P/E comparison, Discounted cash flow, and Graham number.
ACCE opinionMGM Resorts International Common Stock (MGM)
Fair value (2 models)
$34.35
ACCE price target
$29.00
Rating
Undervalued
Horizon
12 months
Fair value published on 19 Oct 2026, 18:04 CEST; previously $33.81 since 15 Oct 2026, 00:00 CEST.
ACCE price target published on 10 Oct 2026, 00:00 CEST.
Rating published on 19 Oct 2026, 18:04 CEST.
Price used: $28.06 at the close on 23 Oct 2026, 22:00 CEST.
Models: P/E comparison and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
18.3% below
+22.4% to fair value
ACCE score
50
out of 100
Analysts
43% buy
23 covering
P/E
18.2x
forward 17.4x
1-year return
-15.1%
Dividend yield
0.00%
MGM Resorts International Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
MGM Resorts operates integrated casino resorts on the Las Vegas Strip and in regional markets, with its flagship properties and online sportsbook and iGaming business sitting alongside the physical estate. At a 7.4 billion dollar market cap, it trades at 18.2 times trailing earnings and 17.4 times forward, a modest discount that reflects revenue growth of only 1.0% and a 6.8% operating margin against a 44.2% gross margin. The return on equity of 18.9% is the number that makes the name worth a second look, since it suggests the capital base is being used well even though top-line expansion has stalled. The thesis turns on whether margin recovery in the Las Vegas gaming and hotel segments can outpace the drag from slower growth. The composite score of 51 out of 100 is middling, and the stock sits outside major index memberships, so a deeper look should start with whether operating margin can move meaningfully higher from here.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Thin operating margin
Operating margin is 6.8% and net margin 2.4%, while Debt/Equity sits at 23.11. Little cushion remains if casino or hotel demand softens.
moderate
Revenue growth stalled
Revenue grew only 1.0% year on year and was down 0.1% quarter on quarter, far below the 29.0% five-year CAGR. The earnings jump of 519.4% comes off a depressed base.
moderate
Elevated short interest
Short interest stands at 15.9% of float. Price trades 3.2% below the ACCE price target and 18.3% below the model fair value of $34.35, so the market is pricing in more risk than the models do.
AI research notes
AI-assisted·How I use AIWritten Oct 19, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last twelve months reached $1.7B, a yield of 22.8% at the current share price.
Diluted share count fell 14.6% in the last fiscal year, so each remaining share now owns a larger slice of the business.
Analysts' mean price target of $45.70 sits 59.8% above the share price, and 43% of covering analysts rate the stock Buy or Strong Buy.
Why it could disappoint
Revenue grew just 1.0% year over year, far below the 29.0% average annual growth of the past five years.
Debt to equity of 23.11 leaves very little cushion if visitation softens further in Las Vegas.
Earnings per share missed expectations by 6.3%, and the 2.4% net margin leaves little room for another shortfall.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 28, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where MGM's valuation models land
Price
$28.06
Model fair value
$34.35
Model range
$12.90 to $55.79
Fair value $34.35
Price $28.06
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Graham number
P/E comparison
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Quality
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