Discounted Cash Flow (DCF) Analysis Unlevered

MGM Resorts International (MGG.DE)

36.58 €

+0.34 (+0.92%)
All numbers are in Millions, Currency in USD
Stock DCF: 46.66 | 36.58 | undervalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 10,773.9011,763.1012,899.675,162.089,680.1410,802.6712,055.3613,453.3215,013.3916,754.37
Revenue (%)
EBITDA 2,489.852,464.444,834.07662.643,457.992,810.733,136.663,500.403,906.314,359.29
EBITDA (%)
EBIT 1,496.371,286.403,529.42-547.922,307.381,413.141,577.021,759.891,963.972,191.71
EBIT (%)
Depreciation 993.481,178.041,304.651,210.561,150.611,397.581,559.651,740.511,942.342,167.58
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 1,499.991,526.762,329.605,101.644,703.064,156.324,638.305,176.165,776.406,446.24
Total Cash (%)
Account Receivables 583.10685.641,374.88559.92857.78898.931,003.181,119.511,249.331,394.20
Account Receivables (%)
Inventories 102.29110.83102.8988.3296.37116.58130.10145.18162.02180.81
Inventories (%)
Accounts Payable 255.03302.58235.44142.52263.10264.52295.20329.43367.63410.26
Accounts Payable (%)
Capital Expenditure -1,864.08-1,486.84-739.01-270.58-490.70-993.44-1,108.64-1,237.20-1,380.67-1,540.78
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 36.58
Beta 2.280
Diluted Shares Outstanding 487.36
Cost of Debt
Tax Rate 14.19
After-tax Cost of Debt 2.79%
Risk-Free Rate
Market Risk Premium
Cost of Equity 14.360
Total Debt 24,573.26
Total Equity 17,827.48
Total Capital 42,400.74
Debt Weighting 57.95
Equity Weighting 42.05
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 10,773.9011,763.1012,899.675,162.089,680.1410,802.6712,055.3613,453.3215,013.3916,754.37
EBITDA 2,489.852,464.444,834.07662.643,457.992,810.733,136.663,500.403,906.314,359.29
EBIT 1,496.371,286.403,529.42-547.922,307.381,413.141,577.021,759.891,963.972,191.71
Tax Rate -103.40%26.38%28.02%31.67%14.19%-0.63%-0.63%-0.63%-0.63%-0.63%
EBIAT 3,043.63947.082,540.57-374.371,979.951,422.021,586.921,770.951,976.312,205.48
Depreciation 993.481,178.041,304.651,210.561,150.611,397.581,559.651,740.511,942.342,167.58
Accounts Receivable --102.54-689.25814.97-297.86-41.16-104.24-116.33-129.82-144.87
Inventories --8.547.9414.57-8.05-20.20-13.52-15.09-16.84-18.79
Accounts Payable -47.55-67.14-92.91120.571.4230.6734.2338.2042.63
Capital Expenditure -1,864.08-1,486.84-739.01-270.58-490.70-993.44-1,108.64-1,237.20-1,380.67-1,540.78
UFCF 2,173.02574.752,357.771,302.232,454.531,766.231,950.842,177.062,429.522,711.25
WACC
PV UFCF 1,640.711,683.431,745.141,809.111,875.43
SUM PV UFCF 8,753.81

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.65
Free cash flow (t + 1) 2,765.48
Terminal Value 48,946.50
Present Value of Terminal Value 33,857.23

Intrinsic Value

Enterprise Value 42,611.04
Net Debt 19,870.20
Equity Value 22,740.84
Shares Outstanding 487.36
Equity Value Per Share 46.66