Melco Resorts Valuation
| MLCO Stock | USD 6.06 0.01 0.17% |
At this time, the firm appears to be undervalued. Melco Resorts Entert secures a last-minute Real Value of $8.48 per share. The latest price of the firm is $6.06. Our model forecasts the value of Melco Resorts Entert from analyzing the firm fundamentals such as Return On Equity of -21.57, current valuation of 8.89 B, and Profit Margin of (0.03) % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Melco Resorts' valuation include:
Price Book 105.5218 | Enterprise Value 8.9 B | Enterprise Value Ebitda 10.2894 | Price Sales 0.5592 | Forward PE 14.0647 |
Undervalued
Today
Please note that Melco Resorts' price fluctuation is somewhat reliable at this time. Calculation of the real value of Melco Resorts Entert is based on 3 months time horizon. Increasing Melco Resorts' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Melco Resorts is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Melco Stock. However, Melco Resorts' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 6.06 | Real 8.48 | Target 16.09 | Hype 6.03 | Naive 5.73 |
The intrinsic value of Melco Resorts' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Melco Resorts' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Melco Resorts Entertainment helps investors to forecast how Melco stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Melco Resorts more accurately as focusing exclusively on Melco Resorts' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Melco Resorts' intrinsic value based on its ongoing forecasts of Melco Resorts' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Melco Resorts' closest peers.
Melco Resorts Cash |
|
Melco Valuation Trend
Knowing Melco Resorts' actual value is paramount for traders when making sound investment determinations. Using both Melco Resorts' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Melco Resorts Total Value Analysis
Melco Resorts Entertainment is now forecasted to have valuation of 8.89 B with market capitalization of 2.54 B, debt of 7.77 B, and cash on hands of 1.52 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Melco Resorts fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
8.89 B | 2.54 B | 7.77 B | 1.52 B |
Melco Resorts Investor Information
About 39.0% of the company shares are owned by institutional investors. The company recorded a loss per share of 0.32. Melco Resorts Entert last dividend was issued on the 28th of February 2020. Based on the key indicators related to Melco Resorts' liquidity, profitability, solvency, and operating efficiency, Melco Resorts Entertainment may be sliding down financialy. It has an above-average chance of going through some form of financial crunch next quarter.Melco Resorts Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Melco Resorts has an asset utilization ratio of 45.29 percent. This suggests that the Company is making $0.45 for each dollar of assets. An increasing asset utilization means that Melco Resorts Entertainment is more efficient with each dollar of assets it utilizes for everyday operations.Melco Resorts Ownership Allocation
Melco Resorts Entert maintains a total of 419.71 Million outstanding shares. 30% of Melco Resorts outstanding shares are owned by institutional investors. Institutional investors are typically referred to investors that purchase positions in a given stock to benefit from reduced commissions. Consequently, institutional investors are subject to different rules and regulations than regular investors. Please look out for any change in current institutional holding as this could mean something significant has changed at the company or is about to change. Please note that no matter how many assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.Melco Resorts Profitability Analysis
The company reported the previous year's revenue of 3.78 B. Net Loss for the year was (326.92 M) with profit before overhead, payroll, taxes, and interest of 246.54 M.About Melco Resorts Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Melco Resorts Entertainment. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Melco Resorts Entert based exclusively on its fundamental and basic technical indicators. By analyzing Melco Resorts's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Melco Resorts's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Melco Resorts. We calculate exposure to Melco Resorts's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Melco Resorts's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 891.8 M | 862 M | |
| Pretax Profit Margin | (0.11) | (0.11) | |
| Operating Profit Margin | 0.02 | 0.02 | |
| Net Loss | (0.09) | (0.09) | |
| Gross Profit Margin | 0.24 | 0.35 |
Melco Resorts Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 438.2 M | |
| Quarterly Earnings Growth Y O Y | 7.797 | |
| Forward Price Earnings | 14.0647 |
Melco Resorts Current Valuation Indicators
Melco Resorts' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Melco Resorts' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Melco Resorts, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Melco Resorts' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Melco Resorts' worth.When determining whether Melco Resorts Entert offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Melco Resorts' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Melco Resorts Entertainment Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Melco Resorts Entertainment Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Melco Resorts Entertainment. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Melco Resorts. If investors know Melco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Melco Resorts listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 7.797 | Earnings Share (0.32) | Revenue Per Share 10.403 | Quarterly Revenue Growth 0.155 | Return On Assets 0.0375 |
The market value of Melco Resorts Entert is measured differently than its book value, which is the value of Melco that is recorded on the company's balance sheet. Investors also form their own opinion of Melco Resorts' value that differs from its market value or its book value, called intrinsic value, which is Melco Resorts' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Melco Resorts' market value can be influenced by many factors that don't directly affect Melco Resorts' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Melco Resorts' value and its price as these two are different measures arrived at by different means. Investors typically determine if Melco Resorts is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Melco Resorts' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.