Is MGM Resorts International overvalued or undervalued?

As of 7 November 2025, MGM Resorts International's valuation grade has moved from fair to very expensive. The company is currently overvalued, as indicated by its P/E ratio of 8, which is significantly lower than the peer average of approximately 11.74 for comparable companies. Additionally, MGM's EV to EBITDA ratio stands at 5.31, while peers like Wynn Resorts Ltd. show a much higher figure of 13.90, further highlighting the overvaluation.
In terms of profitability, MGM boasts a strong ROE of 36.11% and ROCE of 21.96%, which are impressive metrics relative to its valuation. However, when compared to peers such as Boyd Gaming Corp., which has a P/E ratio of 11.80 and an EV to EBIT of 8.27, MGM's current valuation appears excessive. Over the past year, MGM's stock has returned -13.30%, underperforming the S&P 500's return of 12.65%, which reinforces the notion that the stock may not be a favorable investment at its current price.