Only one of our models could value this stock with confidence, so use it as a guide.
Not used by alerts or posts.
Valued as a cyclical company: P/E comparison and Discounted cash flow.
ACCE opinionMelco Resorts & Entertainment Limited American Depositary Shares (MLCO)
Fair value (2 models)
Not available
ACCE price target
$5.00
Rating
Not rated
Horizon
12 months
ACCE price target published on 12 Oct 2026, 00:00 CEST.
Price used: $3.73 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow and P/E comparison.
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
ACCE score
49
out of 100
Analysts
69% buy
13 covering
P/E
6.3x
forward 6.2x
1-year return
-55.2%
Dividend yield
0.00%
Melco Resorts & Entertainment Limited American Depositary Shares in four questions
Plain answers, details below
Free accounts get 5 full stock pages a month, including the four answers.
Overview
ACCE thesis
Melco Resorts operates integrated casino resorts in Macau and Cyprus, most visibly City of Dreams, Altira and the studio city properties, with its own gaming licence and a large mass-market and premium-mass customer base. The structural case rests on Macau's concession-controlled market, where licence scarcity limits new supply and a recovery in visitation flows straight to operators with established, paid-down estates. The numbers look cheap on paper, with a trailing P/E of 7.3 and a forward P/E of 6.0, a 10.2% operating margin and a 38.2% gross margin, but revenue is shrinking at 5.7% and the -2157% ROE reflects a balance sheet carrying heavy accumulated losses and debt, so the discount is pricing real risk. The score of 49/100 and absence from any index argue that this is a stock for a deeper look at cash flow and leverage, not a screen-driven value buy. The open question is whether margin resilience survives continued top-line decline.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Revenue shrinking year on year
Revenue fell 5.7% YoY even though the 5-year revenue CAGR is 24.5%. The top line has turned down, and the reported earnings gain of 35.7% is not matched by sales growth.
high
Negative equity distorts returns
Debt/Equity is -5.64 and ROE is -2157.4%, so the balance sheet has negative book equity. Standard leverage and return ratios are unreliable here and the equity cushion is thin.
moderate
Score down 8 points in 90 days
The ACCE score fell from 57 to 49 over 90 days, with the quality component at 35 and momentum at 17. The deterioration is concentrated in the non-valuation factors.
AI research notes
AI-assisted·How I use AIWritten Oct 24, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow of $476M over the last twelve months is a strong figure for a stock priced at $3.73.
The stock trades at 6.2x forward earnings against a sector median of 18.1x, a steep discount to peers.
Why it could disappoint
Revenue fell 5.7% year over year, reversing a five-year average growth rate of 24.5% per year.
Return on equity of -2157.4% reflects a deeply negative equity base, so the discount may be a fair reflection of risk.
The price implies only 9.5% yearly cash flow growth over five years, while the risk-free rate used is 5.2%.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 5, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
Walk me through this stock
Plain-English pros, cons, and what to watch. Pro feature.
PRO
Ask ACCE
Valuation
INVESTOR
Where MLCO's valuation models land
Price
$3.73
Model fair valueConfidence: medium
$3.14
Model
Fair value
Upside
Discounted cash flow
P/E comparison
Create a free account: 5 full stock pages a month, no card.
See what each model says, the assumptions behind it, the bad, normal and good cases, and why the fair value changed.
Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
+A plain reason under every score
+Conviction breakdown and growth / value / quality / momentum scores
Follow the informed money: 13F position changes, insider and Congress trades, and 13D activist filings.
+Quarter-over-quarter institutional position changes
+Every insider and Congress trade, with how late it was disclosed
+Active 13D activist filings and top holders
Compare
Where it sits vs peers
News and Record
Press releases mentioning this company
Recent performance
1 week
-10.1%
1 month
-21.0%
3 months
-31.1%
6 months
-33.7%
YTD
-50.7%
1 year
-55.2%
SEC filings
Recommendation history, last 12 months
Date
Type
New
Previous
Price
12 Oct 2026, 00:00 CEST
ACCE price target
$5.00
first publication
$4.23
1 Oct 2026, 00:00 CEST
Fair value
$4.56
$4.61
$4.56
18 Sept 2026, 00:00 CEST
Fair value
$4.61
$4.72
$4.56
15 Sept 2026, 00:00 CEST
Fair value
$4.72
$4.79
$5.05
13 Sept 2026, 00:00 CEST
Fair value
$4.79
$4.91
$5.05
5 Sept 2026, 00:00 CEST
Fair value
$4.91
$4.99
$5.18
2 Sept 2026, 00:00 CEST
Fair value
$4.99
$5.77
$5.08
30 Aug 2026, 00:00 CEST
Fair value
$5.77
first publication
$5.32
Price
-55.2% · 1Y
Ask anything about MLCO
Answered from Melco Resorts & Entertainment Limited American Depositary Shares fundamentals + recent valuations. Every number shows its source and date.
This stock Peer Peer median weaker → stronger
P/Ebetter than 80% of peers
low 0.0x6.3xhigh 24.8x
ROEbetter than 0% of peers
low -2157%-2157%high 26%
Div yieldbetter than 50% of peers
low 0.0%0.0%high 2.5%
Peers
Prices Oct 23, 2026
Company
Price
Fair value
vs fair value
P/E
ROE
Quality
Score
MLCOMelco Resorts & Entertainment Limited American Depositary Shares