DCF Tool

MGM

MGM Resorts International – Casino Hotels
the resorts and casinos of mgm resorts international™ are some of the most famous in the world. our 23 destinations are renowned for their winning combination of quality entertainment, luxurious facilities and exceptional customer service. we are actively expanding our presence globally, with potential developments in a number of domestic and international markets. at mgm resorts international, we are all striving together to deliver an enticing blend of entertainment to every corner of the world. many of our resorts are located in las vegas. las vegas features three of the largest convention centers in the u.s., spectacular entertainment, attractions, shopping and world-famous resorts. whether dancing fountains, incredible stage productions, casino action, museums or natural attractions such as lake mead, vegas offers something for everyone. a stroll down our streets takes you around the globe, with recreations like climbing to the top of the eiffel tower or taking a venetian gondola
Analysis Results
Intrinsic Value $150.64
Latest Price $36.54
Relative Value 76% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 15.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 15.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 2.24 2.07
2024 2.6 2.22
2025 3.01 2.38
2026 3.49 2.54
2027 4.05 2.72
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 65.9 billion. This corresponds to a present value of 40.9 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 11.9 billion. Adding in the terminal value gives a total present value of 52.9 billion.

There are presently 351.0 million outstanding shares, so the intrinsic value per share is 150.64.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 8,154,692,000
Current Cash 5,911,893,000
Current Liabilities 4,515,892,000
Current Debt 1,358,893,000
Non-Cash Working Capital (NCWC) -914,200,000
Change in NCWC -272,724,000
EBIT -1,875,372,000
Tax Provision 697,068,000
Depreciation and Amortization 3,482,050,000
Capital Expenditure -765,067,000
Unlevered Free Cash Flow 2,015,294,673
Current Assets 6,416,182,000
Current Cash 4,703,059,000
Current Liabilities 3,442,264,000
Current Debt 1,087,665,000
Non-Cash Working Capital (NCWC) -641,476,000
Change in NCWC 285,892,000
EBIT 648,634,000
Tax Provision 253,415,000
Depreciation and Amortization 1,150,610,000
Capital Expenditure -490,697,000
Unlevered Free Cash Flow 1,481,993,292
Current Assets 5,950,659,000
Current Cash 5,101,637,000
Current Liabilities 1,856,583,000
Current Debt 80,193,000
Non-Cash Working Capital (NCWC) -927,368,000
Change in NCWC 557,991,000
EBIT -2,040,812,000
Tax Provision -191,572,000
Depreciation and Amortization 1,210,556,000
Capital Expenditure -270,579,000
Unlevered Free Cash Flow -542,844,000
Current Assets 4,007,693,000
Current Cash 2,329,604,000
Current Liabilities 3,191,423,000
Current Debt 27,975,000
Non-Cash Working Capital (NCWC) -1,485,359,000
Change in NCWC 420,096,000
EBIT 1,538,021,000
Tax Provision 632,345,000
Depreciation and Amortization 1,304,649,000
Capital Expenditure -739,006,000
Unlevered Free Cash Flow 2,182,118,327
Current Assets 2,526,778,000
Current Cash 1,526,762,000
Current Liabilities 2,948,882,000
Current Debt 43,411,000
Non-Cash Working Capital (NCWC) -1,905,455,000
Change in NCWC 154,253,000
EBIT 1,478,633,000
Tax Provision 50,112,000
Depreciation and Amortization 1,178,044,000
Capital Expenditure -1,486,843,000
Unlevered Free Cash Flow 1,207,215,461
Current Assets 2,374,627,000
Current Cash 1,499,995,000
Current Liabilities 3,092,382,000
Current Debt 158,042,000
Non-Cash Working Capital (NCWC) -2,059,708,000
Change in NCWC -557,668,000
EBIT 1,725,142,000
Tax Provision -1,132,663,000
Depreciation and Amortization 993,480,000
Capital Expenditure -1,864,082,000
Unlevered Free Cash Flow 296,872,000
Current Assets 2,229,587,000
Current Cash 1,446,581,000
Current Liabilities 2,293,421,000
Current Debt 8,375,000
Non-Cash Working Capital (NCWC) -1,502,040,000
Change in NCWC -330,968,000
EBIT 1,806,082,000
Tax Provision 22,299,000
Depreciation and Amortization 849,527,000
Capital Expenditure -2,262,473,000
Unlevered Free Cash Flow 30,183,757
Current Assets 2,408,749,000
Current Cash 1,670,312,000
Current Liabilities 2,237,951,000
Current Debt 328,442,000
Non-Cash Working Capital (NCWC) -1,171,072,000
Change in NCWC 248,088,000
EBIT 1,347,710,000
Tax Provision -6,594,000
Depreciation and Amortization 819,883,000
Capital Expenditure -1,466,819,000
Unlevered Free Cash Flow 948,862,000
Current Assets 3,027,160,000
Current Cash 2,283,715,000
Current Liabilities 3,407,925,000
Current Debt 1,245,320,000
Non-Cash Working Capital (NCWC) -1,419,160,000
Change in NCWC -119,602,000
EBIT 1,364,540,000
Tax Provision 283,708,000
Depreciation and Amortization 815,765,000
Capital Expenditure -872,041,000
Unlevered Free Cash Flow 246,476,298
Current Assets 2,719,439,000
Current Cash 1,803,669,000
Current Liabilities 2,215,328,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,299,558,000
Change in NCWC -337,470,000
EBIT 1,078,935,000
Tax Provision 31,263,000
Depreciation and Amortization 849,225,000
Capital Expenditure -562,124,000
Unlevered Free Cash Flow 644,235,744
Current Assets 2,507,092,000
Current Cash 1,543,509,000
Current Liabilities 1,925,671,000
Current Debt 0
Non-Cash Working Capital (NCWC) -962,088,000
Change in NCWC -164,131,000
EBIT 698,555,000
Tax Provision -117,301,000
Depreciation and Amortization 927,697,000
Capital Expenditure -422,763,000
Unlevered Free Cash Flow 1,039,358,000

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.