MGM Resorts International reported record consolidated revenue in its latest quarter but fell short of EBITDA expectations, sending the stock lower after the earnings release. The company's share price has risen 19.29% over the past 90 days and delivered a 22.77% total shareholder return over one year, though longer-term returns have been more modest at 3.67% over three years and 14.89% over five years. Analysts following the stock most widely see it as 13% undervalued, with a fair value estimate of $50.57 against a last close of $44.10, driven by expectations for higher-margin digital gaming and sports betting growth including BetMGM North America and expansion in Brazil. However, MGM trades at a P/E of 26.2x, above the US Hospitality industry average of 23.1x and well above a fair ratio of 18.8x, suggesting investors are already paying a premium. The company also faces pressure from heavy spending on long-dated projects and uncertainty around the proposed People Incorporated take-private offer.
