MGM Resorts International (MGM) just reported second quarter 2026 results, with higher net income and earnings per share from continuing operations compared with a year earlier, alongside a significant goodwill impairment charge.

MGM Resorts International shares trade at US$44.57 after easing 6.21% over the past month. However, the 90 day share price return of 15.77% and 1 year total shareholder return of 24.67% still point to improving momentum despite a slightly weaker 3 year total shareholder return.

If MGM’s latest earnings and buybacks have you reassessing the sector, it can help to see what else is out there, starting with 18 top founder-led companies

MGM Resorts International appears to be a solid operator after its recent earnings and buybacks, yet the share price has pulled back from recent highs. This raises the question of whether the current level offers a fair opportunity today or whether the stock has already moved up enough.

Most Popular Narrative: 9.5% Undervalued

MGM Resorts International last closed at $44.57, while the most followed narrative sets fair value around $49.24 using a 12.46% discount rate. That gap reflects a view that cash flows and earnings could justify a higher price if the assumptions play out.

The development and opening of international integrated resorts specifically, the exclusive license in MGM Osaka, anticipated multibillion-dollar revenue potential, and Dubai project should capture rising demand for destination travel among the growing global middle class, unlocking new recurring revenue streams and diversifying consolidated earnings over the long term.

Curious what sits behind that Osaka and Dubai optimism? The narrative leans on measured revenue growth, fatter margins, and a richer earnings multiple. The exact mix of those moving parts is where the story gets interesting.

Result: Fair Value of $49.24 (UNDERVALUED)

However, MGM Resorts International still faces meaningful risks if large capital expenditure projects overrun or if premium gaming and travel demand softens more than analysts currently factor in.

Another View: MGM Resorts International Through Earnings Multiples

The SWS DCF model points to fair value around $52.44, which lines up with the idea that MGM Resorts International trades at a discount to its future cash flows. The P/E ratio of 26.5x is above the industry at 25.5x and the fair ratio of 18.5x, so the question is how much of that gap investors are comfortable paying for.

See what the numbers say about this price in our valuation breakdown with See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If this mix of optimism and caution around MGM Resorts International leaves you on the fence, now is a good time to review the key data points yourself and test your thesis against the 1 key reward and 2 important warning signs

Looking for more investment ideas beyond MGM Resorts International?

If MGM Resorts International has sharpened your focus, do not stop here. The right watchlist can give you options when the next opportunity shows up.

• Target potential upside by reviewing screener containing 19 high quality undiscovered gems that combine strong fundamentals with lower market attention.
• Strengthen your core holdings by checking solid balance sheet and fundamentals stocks screener (45 results) that put financial resilience front and center.
• Reduce portfolio stress by assessing 81 resilient stocks with low risk scores built to keep volatility in check when markets get choppy.

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.