DCF Tool

MGM

MGM Resorts International – Casino Hotels
MGM Resorts International is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 29 unique hotel and destination gaming offerings in the United States and Macau, including some of the most recognizable resort brands in the industry such as Bellagio, MGM Grand, ARIA and Park MGM. The Company's 50/50 venture, BetMGM, LLC, offers U.S. sports betting and online gaming through market-leading brands, including BetMGM and partypoker. The Company is currently pursuing targeted expansion in Asia through the integrated resort opportunity in Japan. Through its 'Focused on What Matters: Embracing Humanity and Protecting the Planet' initiative, MGM Resorts commits to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, guests, and in the communities where it operates. The global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®.
Analysis Results
Intrinsic Value $166.16
Latest Price $40.39
Relative Value 76% undervalued
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Cash Flow (Billions)
Analysis Parameters
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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 7.5%. 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 2.09
2024 2.6 2.25
2025 3.01 2.42
2026 3.49 2.61
2027 4.05 2.82
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 74.6 billion. This corresponds to a present value of 48.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 12.2 billion. Adding in the terminal value gives a total present value of 60.4 billion.

There are presently 364.0 million outstanding shares, so the intrinsic value per share is 166.16.

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

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