MGM Resorts International (MGM) renewed its multi year partnerships with Major League Baseball, keeping MGM Resorts as the league's exclusive Integrated Resort & Casino Partner and extending BetMGM's role as an Official Gaming and Sports Betting Partner.

MGM Resorts International shares trade at US$47.52, with short term momentum soft after a 1 month share price return that declined 6.25%. However, a 90 day gain of 29.55% and 1 year total shareholder return of 26.15% point to improving sentiment as the renewed Major League Baseball partnership, BetMGM profitability and longer term projects such as the planned Japan resort shape the broader narrative.

If this kind of sports and entertainment theme interests you, it can be worth widening your watchlist to see what stands out in the 20 top founder-led companies

With MGM Resorts International trading around US$47.52, showing soft 1 month momentum but stronger 90 day and 1 year returns, the key question now is whether the stock still trades at a discount or if the market is already pricing in future growth.

Most Popular Narrative: 69.9% Overvalued

The most followed narrative currently places MGM Resorts International's fair value at $27.97, well below the last close of $47.52, which sets up a clear valuation gap for investors to assess.

MGM trades at a valuation that reflects neither a pure real-estate company nor a high-growth tech platform. This hybrid positioning can confuse markets, but it also creates opportunity.

Want to see why this framework still supports a premium price tag for MGM Resorts International? The narrative leans heavily on earnings power, margin resilience and a profit multiple usually reserved for faster growing platforms. Curious which specific profitability targets and cash flow assumptions are doing the heavy lifting behind that fair value line?

Result: Fair Value of $27.97 (OVERVALUED)

However, the story of MGM Resorts International can be challenged if growth in digital betting slows or if higher spending on new projects pressures margins and cash returns.

Another View on MGM Resorts International's Value

While the most popular narrative suggests MGM Resorts International is 69.9% overvalued at a fair value of $27.97, the SWS DCF model points the other way. On that measure, MGM at $47.52 trades around 25.9% below an estimated future cash flow value of $64.13, raising the question of which story investors should consider.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out MGM Resorts International for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 41 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With sentiment on MGM Resorts International pulling in different directions, it helps to look at the numbers yourself and move quickly to shape your own view using the 2 key rewards and 3 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.