Melco Resorts & Entertainment Limited (MLCO) Fair Value & Analysis

Consumer Cyclical · US · Market cap $2.1B

A solid business, screening 90% undervalued on our models.

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 $15.74) 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 Jul 24, 2026.

How to read this chart

60‑month range $4.48 – $19.66 · fair‑value band $7.86 – $15.74 · the $5.52 price screens below the $10.48 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 24, 2026.

Full chart & analysis →

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Analysis

Melco Resorts & Entertainment Limited (MLCO) currently trades at $5.52, while our model-based Fair Value estimate is $10.48, implying the stock looks roughly 89.9% undervalued today. The Quality Score stands at 60/100 (solid 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 Resorts & Entertainment Limited 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 9.5. Fundamentals as of Jul 24, 2026

Our scenario range runs from $7.86 (bear case) to $15.74 (bull case); at $5.52, 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 46% below its 52-week high and 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 11% fair-value upside, at 90%, MLCO 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.

Widest divergence: DCF Models ($15.29) versus Economic Profit ($4.35). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

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 Limited reported revenue of $5.2B in FY2025 versus $2.0B in FY2021, a compound +26.6%/yr. Reported net income was $185M in FY2025.

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Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

• Earnings Preview: Melco Resorts (MLCO) Q2 Earnings Expected to Decline Yahoo Finance · Jul 23, 2026
• Melco Resorts & Entertainment (MLCO) Extends Credit Facility Maturity and Increases Total Commitment Yahoo Finance · Jun 19, 2026
• Melco Announces Extension of Maturity Date of Revolving Credit Facilities and Establishment of Incremental Facility Yahoo Finance · Jun 9, 2026

Peer Group

Resorts & Casinos · 76 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

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.

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

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Frequently asked questions

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.