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MGM RESORTS INTERNATIONAL (MGM) — WACC Analysis

WACC Breakdown

MGM RESORTS INTERNATIONAL (MGM) has a weighted average cost of capital (WACC) of 7.6%. The cost of equity is 9.0%, derived from a beta of 1.00 and a risk-free rate of 4.7%. The after-tax cost of debt is 5.3%. The capital structure is 63.7% equity and 36.3% debt.

Interpretation

A WACC of 7.6% suggests that the market views MGM RESORTS INTERNATIONAL as relatively low-risk, with a lower cost of financing.

Investors can compare MGM's WACC of 7.6% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

MGM WACC: 7.64% for MGM RESORTS INTERNATIONAL

Current inputs imply a 8.96% cost of equity and a 6.74% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

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MGM RESORTS INTERNATIONAL Common Stock (MGM) WACC Results
Weighted Average Cost of Capital
7.64%
Cost of Equity
8.96%
Risk-Free Rate4.73%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
5.32%
Pre-Tax Cost of Debt6.74%
Tax Rate21.00%
Tax Shield1.42%
Capital Structure
Equity: 63.67%($10.64B)
Debt: 36.33%($6068.44M)
Equity Component
5.71%
63.67% × 8.96%
Debt Component
1.93%
36.33% × 5.32%

MGM RESORTS INTERNATIONAL (MGM) WACC in context

MGM RESORTS INTERNATIONAL (MGM) currently screens with an estimated WACC of 7.64%. That blends a 8.96% cost of equity, a 6.74% pre-tax cost of debt, and a 63.67% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What MGM WACC implies

A 7.64% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates MGM

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 63.67% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.