Intrinsiqq
Melco Resorts & Entertainment LTD logoMelco Resorts & Entertainment LTDMLCO
$3.96-2.94%
Melco Resorts & Entertainment LTD logo

Melco Resorts & Entertainment LTD

MLCO

$3.96

-$0.12 (-2.94%)

⊜ Compare
ProfitabilitySolid marginsGrowthSteady growthCash FlowStrong conversionValuationNot cheap
What stands out

11.63% operating margin is respectable but not wide. ROIC at 10.04%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.

What's changing

Revenue grew 11.3%, still solid.

What deserves caution

At 26x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Net debt of $6.00B represents 7.5x FCF, leverage limits flexibility.

Valuation context

25.7x earnings, 5.9x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.

Price History

-51.2%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market Cap$4.76B
EPS$0.15
P/E25.71
P/FCF5.93
EV/EBITDA9.90
FCF Yield16.9%
Div. Yield0.00%
Net Debt/FCF7.5x
52-Week Range
$3.96$9.39

Profitability & Returns

Revenue (TTM)

$5.16B

▲ +11.3% YoY

Net Income (TTM)

$185M

▲ +325.0% YoY

Op. Margin

11.63%

▲ +1.2pp YoY

ROIC

10.04%

▲ +2.7pp YoY

Cash Flow & Balance Sheet

FCF (TTM)

$802M

▲ +35.4% YoY

Op. Cash Flow (TTM)

$818M

▲ +30.6% YoY

Net Debt

$6.00B

Cash & Equiv.

$1.02B

5Y CAGR: +24.5%

Continue Research

SourceComputed from the 10-K filed 13 Mar 2026, covering the period ending 31 Dec 2025, as reported to the SEC. Data last refreshed 17 Apr 2026. How this is calculated.

Price from market data, last close as of 22 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.

Is Melco Resorts & Entertainment (MLCO) overvalued?

At a P/E of 25.7 and a price-to-free-cash-flow of 5.9, Melco Resorts & Entertainment (MLCO) trades below a two-stage DCF intrinsic value of about $24.84 per share, so at $3.96 the stock looks undervalued (527.4% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, Melco Resorts & Entertainment scores 82/100 on Intrinsiqq's quality scorecard (a high-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

What is Melco Resorts & Entertainment's fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about $24.84 per share for MLCO, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $18.63. At today's $3.96, that puts the stock about 527.4% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is Melco Resorts & Entertainment a high-quality business?+

Melco Resorts & Entertainment scores 82 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a high-quality business on these measures. Recent fundamentals include a 11.6% operating margin and a 10.0% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Is Melco Resorts & Entertainment a good stock to buy right now?+

That depends on valuation and quality together, not either alone. MLCO currently trades below its estimated intrinsic value and scores 82/100 on quality (high-quality). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.

Related stocks: Hotels & Motels

Spot a number that looks wrong? Check it in MLCO's SEC filings or

Download this analysis as a PDF (Pro)

Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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Intrinsiqq is a Netherlands-based company operating in Rotterdam, KvK 73238007.