MGM Resorts International (MGM) is undervalued and Red Rock Resorts Inc (RRR) is slightly undervalued.
Against our estimates of intrinsic value, MGM trades at the wider discount: a margin of safety of +32%, against +8% for RRR.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 6.7% values the shares at $57.32; the price of $38.90 is 32% below that value, and 85% of that value comes from beyond year five.
Leak Score 41/100 on 3 of 12 signals
Discounting its cash flows at 8.9% (average of 3 methods) values the shares at $52.93; the price of $48.76 is 8% below that value, and 77% of that value comes from beyond year five.
Leak Score 0/100 on 3 of 12 signals
| Metric | MGM | RRR |
|---|---|---|
| Verdict | Undervalued | Slightly undervalued |
| Price | $38.90 | $48.76 |
| Intrinsic value | $57.32 | $52.93 |
| Margin of safety | +32% | +8% |
| Leak Score | 41/100 (3/12) | 0/100 (3/12) |
| Market cap | $9.8B | $5.1B |
| Revenue growth, 5 years | 27.7% | 11.2% |
| Operating margin | 6.5% | 28.6% |
| Net margin | 2.4% | 8.4% |
| Return on equity | 15.4% | 90.2% |
| Debt to equity | 12.00 | 21.25 |
| P/E | 23.5x | 17.3x |
| Forward P/E | 19.5x | 16.7x |
| P/B | 3.9x | 16.9x |
| Dividend yield | — | 3.7% |