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Melco International Development Limited (0200) Fair Value & Analysis

Consumer Cyclical · HK · Market cap HK$7.1B

MI Melco International Development Limited 0200 · HK
PriceHK$3.53
Fair ValueHK$7.39
Upside+109.4%
Quality36/100
Mixed Growth
Thin margins · 2.6% net margin
High debt · generates free cash flow
Ranks above peers (9/14)
Moderate moat 45/100
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Evidence: Medium Range HK$5.55 – HK$20.30 Share as image

Fair value as of: Aug 2, 2026

From 24 valuation models · updated 3 days ago

Share price +5.4% over the past month.

Below-average quality, screening 109% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (36/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (HK$5.55). The market is more pessimistic than our downside scenario.
  • The model range is unusually wide (HK$5.55 to HK$20.30). The outcome hinges heavily on assumptions, so read the point estimate with caution.
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Price vs Fair Value (5 years)

HK$12.94 HK$2.42 Fair Value HK$7.39 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range HK$2.42 – HK$12.94 · fair‑value band HK$5.55 – HK$20.30 · the HK$3.53 price screens below the HK$7.39 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

Melco International Development Limited (0200) currently trades at HK$3.53, while our model-based Fair Value estimate is HK$7.39, implying the stock looks roughly 109.4% undervalued today. We read business quality at 36/100 (below-average quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Melco International Development Limited generated revenue of HK$40.2B at a net margin of 2.6%. Revenue grew 10.2% year over year. It earns a return on equity of 17.2%. Net debt stands at HK$51.2B. Fundamentals as of Aug 2, 2026

Our scenario range runs from HK$5.55 (bear case) to HK$20.30 (bull case); at HK$3.53, the current price sits below that range. The share trades about 45% below its 52-week high and 17% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 12% fair-value upside, at 109%, 0200 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF HK$28.28 HK$73.25 HK$145.70 80
Residual Income HK$4.34 HK$7.27 HK$162.92 76
Rev-Margin DCF HK$11.47 HK$33.50 HK$79.89 74
All 24 models by family
DCF Models
FCF DCF HK$31.51 HK$60.11 HK$149.29 38
Owner Earnings HK$19.24 HK$64.44 31
5Y Revenue Exit HK$8.59 HK$26.53 HK$63.74 39
5Y EBITDA Exit HK$24.38 HK$58.46 HK$125.23 41
5Y P/E Exit HK$12.43 HK$29.04 38
10Y Revenue Exit HK$15.13 HK$49.42 HK$68.30 36
10Y EBITDA Exit HK$27.22 HK$82.65 HK$177.94 37
10Y P/E Exit HK$8.97 HK$28.84 HK$57.02 35
Earnings-Based
Graham-Dodd HK$3.16 HK$22.06 HK$30.96 54
Lynch FV HK$11.40 HK$16.28 HK$21.17 50
PEG = 1.0 HK$11.40 HK$16.28 HK$21.17 46
EPV HK$0.5200 HK$3.11 59
Multiples
P/E Multiple HK$6.98 HK$9.30 HK$11.63 63
P/S Multiple HK$5.93 HK$7.91 HK$9.89 58
P/B Multiple HK$1.88 HK$2.51 HK$3.14 55
EV/EBIT HK$9.87 HK$20.33 HK$30.79 53
EV/EBITDA HK$20.12 HK$33.99 HK$47.86 54
EV/Revenue HK$5.46 HK$13.55 43
Asset-Based
NCAV (Graham) HK$0.4200 HK$0.5600 HK$0.8400 50
Growth DCF
Growth DCF HK$28.28 HK$73.25 HK$145.70 80
Rev-Margin DCF HK$11.47 HK$33.50 HK$79.89 74
Economic Profit
Residual Income HK$4.34 HK$7.27 HK$162.92 76
ROIC Compounder HK$0.5200 HK$6.96 72
Growth Earnings
Growth-Adj P/E HK$14.69 HK$20.98 HK$27.28 68

Widest divergence: Growth DCF (HK$33.50) versus Economic Profit (HK$0.5200). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) HK$40.2B
Revenue growth (YoY) +10.2%
Net margin 2.6%
Return on equity 17.2%
Free cash flow HK$7.6B FY2025
P/E ratio 6.5
More key figures
Operating margin 13.2%
EPS (TTM) HK$0.1700
EPS growth (YoY) +32.1%
Net debt HK$51.2B FY2025

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 36/100

Of which business quality 42 · Market factors (momentum, volatility) 25

Profitability 38
Margins and returns on capital today
Quality Growth 34
Are margins and returns improving?
Cashflow 91
Earnings quality: real cash, not paper profit
Fin. Strength 8
Balance sheet, leverage, solvency risk
Investment 80
Disciplined investing over empire-building
Low Volatility 53
Calm price path (market factor)
Momentum 16
Price trend over the last 3–12 months (market factor)
52W Momentum 8
Distance to the 52-week high (market factor)
Net Issuance 0
Buybacks instead of dilution

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.

About the company

Melco International Development Limited, an investment holding company, engages in the leisure and entertainment business in Macau, the Philippines, and Cyprus. It operates in two segments, Casino and Hospitality, and Others. The company operates casinos and provides hospitality services and facilities through Melco Resorts.

Full company description

Melco International Development Limited, an investment holding company, engages in the leisure and entertainment business in Macau, the Philippines, and Cyprus. It operates in two segments, Casino and Hospitality, and Others. The company operates casinos and provides hospitality services and facilities through Melco Resorts. It also develops, owns, and operates integrated resort facilities such as City of Dreams in Macau, the company's flagship integrated resort; Studio City, a cinematically themed integrated resort; Altira Macau, an integrated resort designed to provide a casino and hotel experience; Mocha Clubs and Other, a non-casino based operations of electronic gaming machines; and City of Dreams Manila, and City of Dreams Mediterranean and Other. In addition, the company operates satellite casinos. Further, it provides financing and management services. The company was formerly known as The Macao Electric Lighting Company, Limited and changed its name to Melco International Development Limited in 1988. Melco International Development Limited was incorporated in 1910 and is headquartered in Central, Hong Kong.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Melco International Development Limited reported revenue of HK$24.5B in FY2025 versus HK$9.1B in FY2021, a compound +28.2%/yr. Reported net income was HK$1.1B in FY2025.

Growth Quality 89/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$24.5B
Latest YoY
−32.2%
Avg. growth/yr (3Y)
+53.9%
Avg. growth/yr (5Y)
+26.5%
Avg. growth/yr (25Y)
+24.2%
Revenue +28.2%/yr
FY21 HK$9.1B
FY22 HK$6.7B
FY23 HK$17.9B
FY24 HK$36.2B
FY25 HK$24.5B
Net income
FY21 −HK$3.8B
FY22 −HK$5.1B
FY23 −HK$1.7B
FY24 −HK$785M
FY25 HK$1.1B

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Cite: Fair Value Calculator (2026). "Melco International Development Limited Fair Value". https://www.fairvalue-calculator.com/stock/0200

Peer Group

Resorts & Casinos · 79 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.

Quality Score 37 · Bottom 25%
Fair Value upside +136% · Top 25%
Return on equity (TTM) 17% · Top 25%
Return on assets 4% · Above median
Net margin (TTM) 3% · Below median
Operating margin (TTM) 13% · Above median
Revenue growth 10% · Above median
Debt / equity 29.99× · Higher than 75% of peers

Valuation Multiples vs Resorts & Casinos median · lower = cheaper

P/E (TTM) 6.5× · Cheaper than 75% of peers
P/B 3.74× · Pricier than 75% of peers
P/S (TTM) 0.18× · Cheaper than 75% of peers
P/FCF 0.1× · Cheaper than 75% of peers
EV/EBITDA 6.0× · Cheaper than median
PEG 2.77× · Pricier than 75% of peers

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.

VALUE 100 · sector 17
FUTURE 51 · sector 32
PAST 69 · sector 19
HEALTH 0 · sector 84
DIVIDEND 0 · sector 50

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Gambling

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Resorts & Casinos stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Stock Price Fair Value vs Fair Value
Las Vegas Sands Corp LVS $44.79 $52.27 +17%
Galaxy Entertainment Group 0027 HK$34.20 HK$41.44 +21%
Sands China Ltd 1928 HK$13.08 HK$2.05 -84%
MGM Resorts International, through its subsidiaries, MGM $46.13 $13.70 -70%
Wynn Resorts, Limited WYNN $97.05 $69.39 -29%
Red Rock Resorts, Inc RRR $64.75 $17.09 -74%
Boyd Gaming Corporation BYD $87.64 $151.24 +73%
Caesars Entertainment, Inc CZR $29.91 $80.92 +171%
Genting Singapore Limited G13 0.6150 SGD 0.6900 SGD +12%
Vail Resorts, Inc MTN $150.14 $125.02 -17%

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Frequently asked questions

Is Melco International Development Limited (0200) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of HK$7.39 versus a price of HK$3.53, about +109% (undervalued).
What is the fair value of 0200?
Our model-based fair value for Melco International Development Limited is HK$7.39 (as of Aug 2, 2026), built from audited fundamentals. The current price is HK$3.53.
What is the quality score of 0200?
Melco International Development Limited has a Quality Score of 36/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Melco International Development Limited (0200)?
Melco International Development Limited reported trailing-twelve-month revenue of about HK$40.2B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of 0200?
The net profit margin of Melco International Development Limited is about 2.6%, meaning it keeps roughly 2.6% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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