Intrinsic value of MGM Resorts International - MGM

Previous Close

$25.61

  Intrinsic Value

$31.81

stock screener

  Rating & Target

buy

+24%

Previous close

$25.61

 
Intrinsic value

$31.81

 
Up/down potential

+24%

 
Rating

buy

We calculate the intrinsic value of MGM stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 13.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  7.80
  7.52
  7.27
  7.04
  6.84
  6.65
  6.49
  6.34
  6.21
  6.08
  5.98
  5.88
  5.79
  5.71
  5.64
  5.58
  5.52
  5.47
  5.42
  5.38
  5.34
  5.31
  5.28
  5.25
  5.22
  5.20
  5.18
  5.16
  5.15
  5.13
Revenue, $m
  12,603
  13,551
  14,535
  15,559
  16,623
  17,729
  18,879
  20,076
  21,321
  22,619
  23,970
  25,380
  26,849
  28,383
  29,984
  31,656
  33,403
  35,229
  37,139
  39,136
  41,226
  43,414
  45,704
  48,103
  50,615
  53,248
  56,006
  58,898
  61,929
  65,107
Variable operating expenses, $m
  9,672
  10,357
  11,068
  11,808
  12,576
  13,375
  14,206
  15,071
  15,971
  16,908
  17,316
  18,334
  19,395
  20,503
  21,660
  22,867
  24,129
  25,449
  26,828
  28,271
  29,781
  31,361
  33,015
  34,748
  36,563
  38,465
  40,458
  42,546
  44,736
  47,032
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  9,672
  10,357
  11,068
  11,808
  12,576
  13,375
  14,206
  15,071
  15,971
  16,908
  17,316
  18,334
  19,395
  20,503
  21,660
  22,867
  24,129
  25,449
  26,828
  28,271
  29,781
  31,361
  33,015
  34,748
  36,563
  38,465
  40,458
  42,546
  44,736
  47,032
Operating income, $m
  2,930
  3,193
  3,467
  3,751
  4,046
  4,353
  4,673
  5,005
  5,351
  5,711
  6,655
  7,046
  7,454
  7,880
  8,324
  8,788
  9,273
  9,780
  10,311
  10,865
  11,445
  12,053
  12,688
  13,354
  14,052
  14,783
  15,549
  16,351
  17,193
  18,075
EBITDA, $m
  4,445
  4,779
  5,126
  5,487
  5,862
  6,252
  6,658
  7,080
  7,519
  7,977
  8,454
  8,950
  9,469
  10,010
  10,574
  11,164
  11,780
  12,424
  13,097
  13,802
  14,539
  15,310
  16,118
  16,964
  17,850
  18,778
  19,751
  20,771
  21,840
  22,961
Interest expense (income), $m
  661
  704
  795
  889
  987
  1,089
  1,195
  1,306
  1,420
  1,539
  1,664
  1,793
  1,928
  2,068
  2,214
  2,367
  2,527
  2,693
  2,868
  3,050
  3,240
  3,439
  3,647
  3,865
  4,093
  4,332
  4,583
  4,845
  5,120
  5,408
  5,710
Earnings before tax, $m
  2,226
  2,399
  2,578
  2,764
  2,957
  3,158
  3,367
  3,585
  3,811
  4,047
  4,862
  5,118
  5,386
  5,665
  5,957
  6,262
  6,580
  6,913
  7,261
  7,625
  8,006
  8,405
  8,823
  9,261
  9,720
  10,200
  10,704
  11,231
  11,785
  12,365
Tax expense, $m
  601
  648
  696
  746
  798
  853
  909
  968
  1,029
  1,093
  1,313
  1,382
  1,454
  1,530
  1,608
  1,691
  1,777
  1,866
  1,960
  2,059
  2,162
  2,269
  2,382
  2,500
  2,624
  2,754
  2,890
  3,032
  3,182
  3,339
Net income, $m
  1,625
  1,751
  1,882
  2,017
  2,159
  2,305
  2,458
  2,617
  2,782
  2,955
  3,549
  3,736
  3,932
  4,136
  4,349
  4,571
  4,803
  5,046
  5,301
  5,566
  5,845
  6,136
  6,441
  6,761
  7,095
  7,446
  7,814
  8,199
  8,603
  9,026

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  31,428
  33,792
  36,248
  38,800
  41,453
  44,211
  47,079
  50,064
  53,170
  56,406
  59,777
  63,291
  66,956
  70,780
  74,773
  78,942
  83,299
  87,853
  92,615
  97,596
  102,808
  108,263
  113,975
  119,956
  126,222
  132,787
  139,667
  146,877
  154,436
  162,362
Adjusted assets (=assets-cash), $m
  31,428
  33,792
  36,248
  38,800
  41,453
  44,211
  47,079
  50,064
  53,170
  56,406
  59,777
  63,291
  66,956
  70,780
  74,773
  78,942
  83,299
  87,853
  92,615
  97,596
  102,808
  108,263
  113,975
  119,956
  126,222
  132,787
  139,667
  146,877
  154,436
  162,362
Revenue / Adjusted assets
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
Average production assets, $m
  23,643
  25,421
  27,268
  29,188
  31,184
  33,259
  35,417
  37,662
  39,999
  42,433
  44,969
  47,612
  50,369
  53,246
  56,250
  59,386
  62,664
  66,090
  69,672
  73,419
  77,340
  81,444
  85,741
  90,240
  94,954
  99,892
  105,068
  110,492
  116,179
  122,141
Working capital, $m
  -2,117
  -2,276
  -2,442
  -2,614
  -2,793
  -2,978
  -3,172
  -3,373
  -3,582
  -3,800
  -4,027
  -4,264
  -4,511
  -4,768
  -5,037
  -5,318
  -5,612
  -5,918
  -6,239
  -6,575
  -6,926
  -7,293
  -7,678
  -8,081
  -8,503
  -8,946
  -9,409
  -9,895
  -10,404
  -10,938
Total debt, $m
  14,719
  16,468
  18,285
  20,174
  22,137
  24,178
  26,301
  28,509
  30,808
  33,202
  35,697
  38,297
  41,009
  43,839
  46,794
  49,879
  53,103
  56,473
  59,997
  63,683
  67,540
  71,577
  75,803
  80,230
  84,866
  89,724
  94,815
  100,151
  105,745
  111,610
Total liabilities, $m
  23,257
  25,006
  26,823
  28,712
  30,675
  32,716
  34,839
  37,047
  39,346
  41,740
  44,235
  46,835
  49,547
  52,377
  55,332
  58,417
  61,641
  65,011
  68,535
  72,221
  76,078
  80,115
  84,341
  88,768
  93,404
  98,262
  103,353
  108,689
  114,283
  120,148
Total equity, $m
  8,171
  8,786
  9,424
  10,088
  10,778
  11,495
  12,241
  13,017
  13,824
  14,665
  15,542
  16,456
  17,409
  18,403
  19,441
  20,525
  21,658
  22,842
  24,080
  25,375
  26,730
  28,148
  29,633
  31,189
  32,818
  34,525
  36,313
  38,188
  40,153
  42,214
Total liabilities and equity, $m
  31,428
  33,792
  36,247
  38,800
  41,453
  44,211
  47,080
  50,064
  53,170
  56,405
  59,777
  63,291
  66,956
  70,780
  74,773
  78,942
  83,299
  87,853
  92,615
  97,596
  102,808
  108,263
  113,974
  119,957
  126,222
  132,787
  139,666
  146,877
  154,436
  162,362
Debt-to-equity ratio
  1.800
  1.870
  1.940
  2.000
  2.050
  2.100
  2.150
  2.190
  2.230
  2.260
  2.300
  2.330
  2.360
  2.380
  2.410
  2.430
  2.450
  2.470
  2.490
  2.510
  2.530
  2.540
  2.560
  2.570
  2.590
  2.600
  2.610
  2.620
  2.630
  2.640
Adjusted equity ratio
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,625
  1,751
  1,882
  2,017
  2,159
  2,305
  2,458
  2,617
  2,782
  2,955
  3,549
  3,736
  3,932
  4,136
  4,349
  4,571
  4,803
  5,046
  5,301
  5,566
  5,845
  6,136
  6,441
  6,761
  7,095
  7,446
  7,814
  8,199
  8,603
  9,026
Depreciation, amort., depletion, $m
  1,514
  1,585
  1,659
  1,736
  1,816
  1,899
  1,985
  2,075
  2,168
  2,266
  1,799
  1,904
  2,015
  2,130
  2,250
  2,375
  2,507
  2,644
  2,787
  2,937
  3,094
  3,258
  3,430
  3,610
  3,798
  3,996
  4,203
  4,420
  4,647
  4,886
Funds from operations, $m
  3,139
  3,336
  3,541
  3,753
  3,974
  4,204
  4,443
  4,692
  4,951
  5,220
  5,348
  5,641
  5,947
  6,265
  6,599
  6,946
  7,310
  7,690
  8,087
  8,503
  8,938
  9,394
  9,871
  10,370
  10,893
  11,442
  12,016
  12,619
  13,250
  13,912
Change in working capital, $m
  -153
  -159
  -165
  -172
  -179
  -186
  -193
  -201
  -209
  -218
  -227
  -237
  -247
  -258
  -269
  -281
  -294
  -307
  -321
  -336
  -351
  -368
  -385
  -403
  -422
  -442
  -463
  -486
  -509
  -534
Cash from operations, $m
  3,292
  3,496
  3,706
  3,925
  4,153
  4,390
  4,636
  4,893
  5,160
  5,438
  5,575
  5,878
  6,193
  6,523
  6,867
  7,227
  7,603
  7,997
  8,408
  8,839
  9,289
  9,761
  10,255
  10,773
  11,316
  11,884
  12,480
  13,104
  13,759
  14,446
Maintenance CAPEX, $m
  -877
  -946
  -1,017
  -1,091
  -1,168
  -1,247
  -1,330
  -1,417
  -1,506
  -1,600
  -1,697
  -1,799
  -1,904
  -2,015
  -2,130
  -2,250
  -2,375
  -2,507
  -2,644
  -2,787
  -2,937
  -3,094
  -3,258
  -3,430
  -3,610
  -3,798
  -3,996
  -4,203
  -4,420
  -4,647
New CAPEX, $m
  -1,715
  -1,778
  -1,848
  -1,920
  -1,996
  -2,075
  -2,158
  -2,245
  -2,337
  -2,434
  -2,536
  -2,644
  -2,757
  -2,877
  -3,003
  -3,137
  -3,277
  -3,426
  -3,582
  -3,747
  -3,921
  -4,104
  -4,297
  -4,500
  -4,714
  -4,939
  -5,175
  -5,424
  -5,687
  -5,962
Cash from investing activities, $m
  -2,592
  -2,724
  -2,865
  -3,011
  -3,164
  -3,322
  -3,488
  -3,662
  -3,843
  -4,034
  -4,233
  -4,443
  -4,661
  -4,892
  -5,133
  -5,387
  -5,652
  -5,933
  -6,226
  -6,534
  -6,858
  -7,198
  -7,555
  -7,930
  -8,324
  -8,737
  -9,171
  -9,627
  -10,107
  -10,609
Free cash flow, $m
  700
  772
  842
  915
  990
  1,068
  1,148
  1,231
  1,316
  1,405
  1,342
  1,435
  1,532
  1,631
  1,734
  1,841
  1,951
  2,064
  2,182
  2,305
  2,432
  2,564
  2,701
  2,844
  2,992
  3,147
  3,309
  3,477
  3,653
  3,837
Issuance/(repayment) of debt, $m
  1,674
  1,749
  1,817
  1,889
  1,963
  2,041
  2,123
  2,209
  2,299
  2,394
  2,495
  2,600
  2,712
  2,830
  2,954
  3,086
  3,224
  3,370
  3,524
  3,686
  3,857
  4,037
  4,227
  4,426
  4,637
  4,858
  5,091
  5,336
  5,594
  5,865
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,674
  1,749
  1,817
  1,889
  1,963
  2,041
  2,123
  2,209
  2,299
  2,394
  2,495
  2,600
  2,712
  2,830
  2,954
  3,086
  3,224
  3,370
  3,524
  3,686
  3,857
  4,037
  4,227
  4,426
  4,637
  4,858
  5,091
  5,336
  5,594
  5,865
Total cash flow (excl. dividends), $m
  2,374
  2,521
  2,659
  2,803
  2,953
  3,109
  3,271
  3,440
  3,615
  3,799
  3,836
  4,036
  4,244
  4,461
  4,689
  4,926
  5,174
  5,434
  5,706
  5,991
  6,289
  6,601
  6,928
  7,270
  7,629
  8,005
  8,400
  8,813
  9,247
  9,702
Retained Cash Flow (-), $m
  -594
  -614
  -639
  -664
  -690
  -717
  -746
  -776
  -808
  -841
  -876
  -914
  -953
  -994
  -1,038
  -1,084
  -1,133
  -1,184
  -1,238
  -1,295
  -1,355
  -1,418
  -1,485
  -1,555
  -1,629
  -1,707
  -1,789
  -1,875
  -1,965
  -2,061
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  1,780
  1,906
  2,021
  2,140
  2,263
  2,392
  2,525
  2,664
  2,808
  2,957
  2,960
  3,122
  3,291
  3,467
  3,651
  3,842
  4,042
  4,250
  4,468
  4,696
  4,934
  5,182
  5,443
  5,715
  6,000
  6,298
  6,611
  6,938
  7,281
  7,641
Discount rate, %
  8.30
  8.72
  9.15
  9.61
  10.09
  10.59
  11.12
  11.68
  12.26
  12.88
  13.52
  14.20
  14.91
  15.65
  16.43
  17.26
  18.12
  19.02
  19.97
  20.97
  22.02
  23.12
  24.28
  25.49
  26.77
  28.11
  29.51
  30.99
  32.54
  34.16
PV of cash for distribution, $m
  1,643
  1,613
  1,554
  1,482
  1,400
  1,307
  1,207
  1,101
  991
  881
  734
  635
  541
  453
  373
  301
  238
  185
  140
  104
  75
  53
  37
  25
  16
  10
  6
  4
  2
  1
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

MGM Resorts International is a holding company. The Company, through its subsidiaries, owns and operates casino resorts. The Company operates in two segments: domestic resorts and MGM China. Its domestic resorts segment consists of non-gaming operations, including hotel, food and beverage, entertainment and other non-gaming amenities. Its casino operations feature a range of slots, table games, and race and sports book wagering. Its MGM China’s operations consist of the MGM Macau resort and casino, and the development of an integrated casino, hotel and entertainment resort on the Cotai Strip in Macau. Under its resort operation, the Company's casino resorts offer gaming, hotel, convention, dining, entertainment, retail and other resort amenities. It owns Primm Valley Golf Club at the California/Nevada state line and Fallen Oak golf course in Saucier, Mississippi, among others. It owns and manages CityCenter Holdings, LLC, located between Bellagio and Monte Carlo.

FINANCIAL RATIOS  of  MGM Resorts International (MGM)

Valuation Ratios
P/E Ratio 13.4
Price to Sales 1.6
Price to Book 2.4
Price to Tangible Book
Price to Cash Flow 9.6
Price to Free Cash Flow -20.2
Growth Rates
Sales Growth Rate 2.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 54.2%
Cap. Spend. - 3 Yr. Gr. Rate 32.1%
Financial Strength
Quick Ratio 181
Current Ratio 0
LT Debt to Equity 208.7%
Total Debt to Equity 208.8%
Interest Coverage 3
Management Effectiveness
Return On Assets 6.6%
Ret/ On Assets - 3 Yr. Avg. 2.7%
Return On Total Capital 5.9%
Ret/ On T. Cap. - 3 Yr. Avg. 0.9%
Return On Equity 19.4%
Return On Equity - 3 Yr. Avg. 2%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 41.9%
Gross Margin - 3 Yr. Avg. 39.2%
EBITDA Margin 29.3%
EBITDA Margin - 3 Yr. Avg. 18.4%
Operating Margin 22%
Oper. Margin - 3 Yr. Avg. 11.1%
Pre-Tax Margin 13.3%
Pre-Tax Margin - 3 Yr. Avg. 2%
Net Profit Margin 11.6%
Net Profit Margin - 3 Yr. Avg. 1.8%
Effective Tax Rate 1.7%
Eff/ Tax Rate - 3 Yr. Avg. 23.8%
Payout Ratio 0%

MGM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MGM stock intrinsic value calculation we used $11690.913 million for the last fiscal year's total revenue generated by MGM Resorts International. The default revenue input number comes from 0001 income statement of MGM Resorts International. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our MGM stock valuation model: a) initial revenue growth rate of 7.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8.3%, whose default value for MGM is calculated based on our internal credit rating of MGM Resorts International, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of MGM Resorts International.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of MGM stock the variable cost ratio is equal to 77.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for MGM stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for MGM Resorts International.

Corporate tax rate of 27% is the nominal tax rate for MGM Resorts International. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the MGM stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for MGM are equal to 187.6%.

Life of production assets of 25 years is the average useful life of capital assets used in MGM Resorts International operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for MGM is equal to -16.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $7577.061 million for MGM Resorts International - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 537.902 million for MGM Resorts International is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of MGM Resorts International at the current share price and the inputted number of shares is $13.8 billion.

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▶ Probe into electrical shock incident at MGM National Harbor widens   [07:42AM  American City Business Journals]
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▶ Email: Political appointee tapped to lead Interior watchdog   [Oct-17-18 05:07PM  Associated Press]
▶ MGM Resorts invests in $2M Boys & Girls Club center in A.C.   [Oct-15-18 02:43PM  American City Business Journals]
▶ NoMad Las Vegas is Now Open   [09:00AM  PR Newswire]

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