Published on 25 May 2024 on Simply Wall St. via Yahoo Finance
Is MGM Resorts International (NYSE:MGM) Trading At A 36% Discount?
Key Insights
Using the 2 Stage Free Cash Flow to Equity, MGM Resorts International fair value estimate is US$61.95Current share price of US$39.72 suggests MGM Resorts International is potentially 36% undervalued Analyst price target for MGM is US$56.40 which is 9.0% below our fair value estimate
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of MGM Resorts International (NYSE:MGM) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. Our analysis will employ the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.