Stock fact sheet · data as of
Melco Resorts & Entertainment Limited (MLCO): fair value, margin of safety and Wheel Score
Consumer Cyclical · Gambling, Resorts & Casinos · Hong Kong SAR China · ADR · High Growth
Is MLCO undervalued?
At 4.32 (close of 16 Oct 2026), MLCO trades 83% below the GLS average fair value of 25.35. That average comes from 6 models run on the latest filings, and 6 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Melco Resorts & Entertainment Limited the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
There is a wide gap between EPV (6.73) and Payback Time (49.12). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files MLCO under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for MLCO
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | 20.87 | +383% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 8.10 | +87% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 37.08 | +758% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 30.23 | +600% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 49.12 | +1037% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 6.73 | +56% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -18.84 | -536% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 6.88 | +59% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Melco Resorts & Entertainment Limited scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 3.4/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC 3.2%, ROE -14.8%, ROA 2.4% - with debt at -5.64 times equity and negative free cash flow.
Melco Resorts & Entertainment Limited pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Casino 82%, Occupancy 9%, Food and Beverage 6% (fiscal year FY2025).
Institutional ownership scores 4/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 3.2% |
|---|---|---|---|
| GLS Moat | 3.4 / 10 | ROE | -14.8% |
| Debt / equity | -5.64 | ROA | 2.4% |
| Free-cash-flow yield | 0.0% | Payout ratio | 0% |
| Institutions | 4 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 77: Good
With a Wheel Score of 77 - the Good band - Melco Resorts & Entertainment Limited clears the Sunday Scan's "70 or higher" rule. The parts: Value 25/25, Health 11/20, Moat 5/15, Premium 20/20, Stability 16/20; Moat (5/15) scores lowest.
Implied volatility is 54% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 35,906 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.6M shares a day on a market cap of $1.7B, with a beta of 0.58 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 16 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 83% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 5 / 15 | moat 3.4/10 | |
| Premium | 20 / 20 | implied volatility 54% | |
| Stability | 16 / 20 | 1.6M shares/day, $1.7B cap, beta 0.58 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 5 Nov 2026 (before the open), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Gambling, Resorts & Casinos
The 12 companies below are the closest to Melco Resorts & Entertainment Limited by market cap within the Gambling, Resorts & Casinos industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| BRSL Brightstar Lottery PLC | 9.70 | 32.05 | +70% | 80Prime | $1.8B |
| PENN PENN Entertainment, Inc. | 14.52 | 21.24 | +32% | 45Weak | $1.9B |
| MCRI Monarch Casino & Resort, Inc. | 115.54 | 96.49 | -20% | 60Fair | $2.1B |
| RRR Red Rock Resorts, Inc. | 49.77 | 91.51 | +46% | 80Prime | $2.9B |
| ACEL Accel Entertainment, Inc. | 11.06 | 16.36 | +32% | 76Good | $898M |
| VAC Marriott Vacations Worldwide Corporation | 106.23 | 42.56 | -150% | 43Weak | $3.7B |
| BALY Bally's Corporation | 13.42 | - | - | 38Weak | $570M |
| BYD Boyd Gaming Corporation | 70.97 | 385.85 | +82% | 85Prime | $5.2B |
| RSI Rush Street Interactive, Inc. | 18.49 | 15.97 | -16% | 61Fair | $5.2B |
| MTN Vail Resorts, Inc. | 152.96 | 112.59 | -36% | 56Fair | $5.5B |
| SGHC Super Group (SGHC) Limited | 11.12 | 13.44 | +17% | 79Good | $5.6B |
| CHDN Churchill Downs Incorporated | 82.15 | 109.00 | +25% | 85Prime | $5.7B |
⚖ Compare MLCO with 7 of them All Consumer Cyclical stocks →
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about MLCO
Is MLCO undervalued right now?
By the GLS models, yes: at 4.32 the stock is 83% below the average fair value of 25.35 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of MLCO and what does it mean?
MLCO scores 77 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for MLCO?
25.35 per share as of 16 Oct 2026 - the simple average of the 6 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Melco Resorts & Entertainment Limited report earnings next?
The next earnings report is due on 5 Nov 2026 (before the open), 20 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does MLCO have listed options, and how liquid are they?
Yes. The nightly snapshot found 124 listed contracts with 35,906 open interest across all expiries and implied volatility of 54% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.