MGM
MGM Resorts International
Price:  
37.93 
USD
Volume:  
4,342,740
United States | Hotels, Restaurants & Leisure

MGM Fair Value

-58.8 %
Upside

What is the fair value of MGM?

As of 2025-07-12, the Fair Value of MGM Resorts International (MGM) is 15.61 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 37.93 USD, the upside of MGM Resorts International is -58.8%.

Is MGM a good investment?

With the market price of 37.93 USD and our fair value calculation, MGM Resorts International (MGM) is not a good investment. Investing in MGM stocks now will result in a potential loss of 58.8%.

37.93 USD
Stock Price
15.61 USD
Fair Price
FAIR VALUE CALCULATION

MGM Fair Value

Peter Lynch's formula is:

MGM Fair Value
= Earnings Growth Rate x TTM EPS
MGM Fair Value
= 6.3 x 2.49
MGM Fair Value
= 15.61

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income-1,0331,2541,4731,142.18746.56717
YoY growth-150.4%221.4%17.5%-22.5%-34.6%6.3%

MGM Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Las Vegas Sands Corp35,1971.846.13-7.4%
Wynn Resorts Ltd11,6234.120.55-81.5%
Churchill Downs Inc7,6425.9146.4438.4%
Boyd Gaming Corp6,4846.8169.86113.2%
Caesars Entertainment Inc6,245-1.1-5.65-118.8%
Red Rock Resorts Inc5,9541.57.35-86.9%
Melco Resorts & Entertainment Ltd3,5200.20.76-91.3%
Penn National Gaming Inc2,686-0.6-2.82-115.8%
Monarch Casino & Resort Inc1,6004100.6516.2%
Bloomin' Brands Inc853-0-0.12-101.2%

MGM Fair Value - Key Data

Market Cap (mil)10,323
P/E15.2x
Forward P/E10.8x
EPS2.49
Avg earnings growth rate6.3%
TTM earnings678

MGM Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.