Melco Resorts & Entertainment Ltd (MLCO) Fair Value & Analysis
Consumer Cyclical · US · Market cap $2.1B · ISIN US5854641009
What is Melco Resorts & Entertainment Ltd really worth?
Melco Resorts & Entertainment Ltd
MLCO · US
A solid business, trading 51% below our fair value of $10.48.
Strengths
Risks
Fair value as of: Aug 27, 2026
From 22 valuation models · updated 8 days ago
Share price −7.2% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price is below even our cautious bear case ($7.86). The market is more pessimistic than our downside scenario.
- Solid quality (60/100) at a price below fair value, the discount is the argument here, not the business quality.
- A fairly wide model range ($7.86 to $14.15) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.
How to read this chart
60‑month range $4.48 – $17.48 · fair‑value band $7.86 – $14.15 · the $5.18 price screens below the $10.48 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 27, 2026.
Analysis
Melco Resorts & Entertainment Ltd (MLCO) currently trades at $5.18, while our model-based Fair Value estimate is $10.48, implying the stock looks roughly 50.6% undervalued today. The Quality Score stands at 60/100 (solid quality), in the Consumer Cyclical sector. Bull case: the DCF Models group reads highest at a median of $15.29 per share, and 18 of the 20 models we run sit above the $5.18 price. Bear case: the Economic Profit group reads lowest at $4.35, and 2 of the 20 models stay below the price. Evidence for this calculation is medium.
Over the trailing twelve months, Melco Resorts & Entertainment Ltd generated revenue of $5.3B at a net margin of 4.3%. Revenue grew 10.9% year over year. Net debt stands at $6.0B. The stock trades on a trailing P/E of 8.9. Fundamentals as of Aug 27, 2026
Our scenario range runs from $7.86 (bear case) to $14.15 (bull case); at $5.18, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 49% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 12% fair-value upside, at 102%, MLCO screens cheaper than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $0.3925 per share, which is 3.7 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 22 models by family
Widest divergence: DCF Models ($15.29) versus Economic Profit ($4.35). Highest evidence: FCF DCF (69).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 56 · Market factors (momentum, volatility) 30
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Melco Resorts & Entertainment Limited develops, owns, and operates casino gaming and resort facilities in Macau, the Philippines, Cyprus, and internationally. It operates through City of Dreams, Studio City, Altira Macau, Mocha, City of Dreams Manila, City of Dreams Mediterranean and Other, Other Operations, and Corporate and Other segments.
Full company description
Melco Resorts & Entertainment Limited develops, owns, and operates casino gaming and resort facilities in Macau, the Philippines, Cyprus, and internationally. It operates through City of Dreams, Studio City, Altira Macau, Mocha, City of Dreams Manila, City of Dreams Mediterranean and Other, Other Operations, and Corporate and Other segments. The company owns and operates City of Dreams, an integrated resort that has gaming tables and gaming machines; suites and villas; food and beverage outlets; retail outlets; a wet stage performance theater; and recreation and leisure facilities, including health and fitness clubs, swimming pools, spas and salons, and banquet and meeting facilities in Cotai, Macau. It also operates Studio City, a cinematically themed integrated resort with gaming facilities, hotel, entertainment, retail, and food and beverage outlets in Cotai, Macau; and Altira Macau, an integrated resort, which offers gaming tables and gaming machines, hotel rooms, dining and casual restaurants, and recreation and leisure facilities in Taipa, Macau. In addition, the company owns and operates Mocha Clubs, which are clubs with gaming machines in Macau; City of Dreams Manila, an integrated resort in the Entertainment City complex in Manila; City of Dreams Mediterranean, an integrated resort in Limassol, Cyprus; and three satellite casinos in Nicosia, Ayia Napa, and Paphos in Cyprus. Further, it is involved in the operation of the Sri Lanka Casino and management of Nüwa Sri Lanka located in City of Dreams Sri Lanka, as well as development projects in other countries. The company was formerly known as Melco Crown Entertainment Limited and changed its name to Melco Resorts & Entertainment Limited in April 2017. The company was founded in 2003 and is based in Central, Hong Kong. Melco Resorts & Entertainment Limited is a subsidiary of Melco Leisure and Entertainment Group Limited.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Melco Resorts & Entertainment Ltd reported revenue of $5.2B in FY2025 versus $2.0B in FY2021, a compound +26.6%/yr. Reported net income was $185M in FY2025.
of which total revenue +1.1 % · buybacks/dilution +2.7 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
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Peer Group
Resorts & Casinos · 74 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Resorts & Casinos median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Resorts & Casinos stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Las Vegas Sands Corp LVS | $46.23 | $51.60 | +12% |
| Galaxy Entertainment Group 0027 | HK$33.86 | HK$40.46 | +19% |
| Sands China Ltd 1928 | HK$14.45 | HK$19.10 | +32% |
| MGM Resorts International, through its subsidiaries, MGM | $42.28 | $17.73 | −58% |
| Wynn Resorts, Limited WYNN | $102.97 | $69.39 | −33% |
| Red Rock Resorts, Inc RRR | $58.40 | $18.01 | −69% |
| Boyd Gaming Corporation BYD | $80.63 | $151.24 | +88% |
| Caesars Entertainment, Inc CZR | $29.63 | $80.92 | +173% |
| Genting Singapore Limited G13 | 0.6700 SGD | 0.6900 SGD | +3% |
| Vail Resorts, Inc MTN | $148.36 | $132.94 | −10% |
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