Is MGM Resorts International overvalued or undervalued?

Nov 23 2025 11:10 AM IST
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As of November 21, 2025, MGM Resorts International is considered overvalued due to its low P/E ratio compared to peers, a high PEG ratio, and underperformance relative to the S&P 500.
As of 21 November 2025, MGM Resorts International's valuation grade has moved from fair to very expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 8, which is significantly lower than the peer average, and its EV to EBITDA ratio of 5.31, which also suggests a premium compared to competitors. Additionally, the PEG ratio stands at 3.99, further highlighting the potential overvaluation relative to growth expectations.

In comparison to its peers, Wynn Resorts Ltd. has a P/E of 31.93, while Boyd Gaming Corp. boasts a more attractive P/E of 11.80, indicating that MGM's valuation is not justified when looking at similar companies. Furthermore, MGM's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -6.06% compared to the S&P's 12.26%, and a 1-year return of -14.36% against the S&P's 11.00%. This underperformance reinforces the notion that MGM Resorts International is currently overvalued.
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