MGM Resorts International (MGM) is undervalued and Marriott Vacations Worldwide Corp (VAC) is slightly undervalued.
Against our estimates of intrinsic value, MGM trades at the wider discount: a margin of safety of +32%, against +15% for VAC.
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 7.5% (average of 2 methods) values the shares at $116.32; the price of $99.15 is 15% below that value, and 82% of that value comes from beyond year five.
Leak Score 30/100 on 2 of 12 signals
| Metric | MGM | VAC |
|---|---|---|
| Verdict | Undervalued | Slightly undervalued |
| Price | $38.90 | $99.15 |
| Intrinsic value | $57.32 | $116.32 |
| Margin of safety | +32% | +15% |
| Leak Score | 41/100 (3/12) | 30/100 (2/12) |
| Market cap | $9.8B | $3.4B |
| Revenue growth, 5 years | 27.7% | 11.8% |
| Operating margin | 6.5% | 10.4% |
| Net margin | 2.4% | -6.5% |
| Return on equity | 15.4% | -14.7% |
| Debt to equity | 12.00 | 2.69 |
| P/E | 23.5x | — |
| Forward P/E | 19.5x | 10.3x |
| P/B | 3.9x | 1.7x |
| Dividend yield | — | 2.7% |