Latest Ratios: P/E Ratio 10.5x · EV/EBITDA 6.9x · ROE N/A. (2004–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.8B | $3.0B | $2.5B | $3.9B | $5.3B | $4.9B | $8.9B | $11.6B | $8.9B | $14.5B | $6.9B |
| Enterprise Value | $7.8B | $9.0B | $8.8B | $10.3B | $12.2B | $10.2B | $13.2B | $15.1B | $11.8B | $16.9B | $9.2B |
| P/E Ratio → | 10.49 | 16.82 | 57.90 | — | — | — | — | 30.99 | 25.17 | 42.09 | 38.87 |
| P/S Ratio | 0.35 | 0.59 | 0.54 | 1.03 | 3.95 | 2.42 | 5.12 | 2.03 | 1.73 | 2.74 | 1.53 |
| P/B Ratio | — | — | — | — | — | 5.94 | 4.82 | 3.70 | 3.24 | 4.34 | 1.81 |
| P/FCF | 3.85 | 6.37 | 7.71 | 10.83 | — | — | — | 30.11 | 23.08 | 22.41 | 10.64 |
| P/OCF | 2.24 | 3.71 | 4.00 | 6.24 | — | — | — | 13.91 | 8.46 | 12.47 | 5.97 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.75 | 1.90 | 2.74 | 9.06 | 5.09 | 7.64 | 2.62 | 2.29 | 3.20 | 2.04 |
| EV / EBITDA | 6.86 | 7.91 | 8.59 | 17.01 | — | 4277.66 | — | 10.94 | 10.08 | 15.04 | 10.34 |
| EV / EBIT | 13.05 | 14.55 | 18.35 | 37.95 | — | — | — | 21.04 | 19.42 | 29.34 | 26.04 |
| EV / FCF | — | 18.97 | 27.09 | 28.83 | — | — | — | 38.97 | 30.63 | 26.20 | 14.20 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 36.7% | 36.7% | 35.9% | 31.4% | 21.2% | 24.3% | 11.0% | 36.6% | 35.7% | 32.8% | 31.1% |
| Operating Margin | 11.6% | 11.6% | 10.4% | 1.7% | -55.0% | -28.7% | -54.4% | 13.0% | 12.2% | 11.5% | 8.0% |
| Net Profit Margin | 3.6% | 3.6% | 0.9% | -8.7% | -68.9% | -40.3% | -73.1% | 6.5% | 6.8% | 6.6% | 3.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | -368.1% | -61.1% | -50.7% | 12.7% | 11.6% | 9.7% | 4.0% |
| ROA | 2.4% | 2.4% | 0.5% | -3.7% | -10.2% | -9.1% | -13.7% | 4.1% | 4.0% | 3.8% | 1.8% |
| ROIC | 8.6% | 8.6% | 6.6% | 0.8% | -8.7% | -7.0% | -11.1% | 9.2% | 8.2% | 7.6% | 4.0% |
| ROCE | 9.1% | 9.1% | 6.9% | 0.8% | -9.3% | -7.3% | -11.9% | 10.2% | 9.0% | 8.1% | 4.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | 8.58 | 3.32 | 1.53 | 1.58 | 1.16 | 1.05 |
| Debt / EBITDA | 6.15 | 6.15 | 7.27 | 12.77 | — | 2936.49 | — | 3.50 | 3.71 | 3.43 | 4.50 |
| Net Debt / Equity | — | — | — | — | — | 6.57 | 2.36 | 1.09 | 1.06 | 0.73 | 0.60 |
| Net Debt / EBITDA | 5.26 | 5.26 | 6.15 | 10.62 | — | 2246.63 | — | 2.49 | 2.48 | 2.18 | 2.59 |
| Debt / FCF | — | 12.61 | 19.38 | 18.00 | — | — | — | 8.86 | 7.55 | 3.79 | 3.56 |
| Interest Coverage | 1.31 | 1.31 | 0.99 | 0.55 | -1.93 | -1.67 | -2.63 | 2.29 | 2.26 | 2.20 | 1.27 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.07 | 1.07 | 1.20 | 1.40 | 1.73 | 1.83 | 1.80 | 1.24 | 0.92 | 1.10 | 1.54 |
| Quick Ratio | 1.04 | 1.04 | 1.17 | 1.37 | 1.71 | 1.80 | 1.77 | 1.21 | 0.90 | 1.07 | 1.52 |
| Cash Ratio | 0.86 | 0.86 | 0.96 | 1.19 | 1.51 | 1.62 | 1.57 | 0.95 | 0.72 | 0.90 | 1.29 |
| Asset Turnover | — | 0.68 | 0.58 | 0.45 | 0.15 | 0.23 | 0.19 | 0.60 | 0.58 | 0.59 | 0.48 |
| Inventory Turnover | 88.48 | 88.48 | 91.68 | 88.05 | 40.26 | 51.45 | 41.27 | 82.76 | 81.23 | 101.54 | 95.51 |
| Days Sales Outstanding | — | 8.94 | 11.54 | 8.94 | 15.31 | 9.95 | 27.54 | 18.12 | 23.31 | 12.36 | 18.30 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | 0.9% | 2.6% | 3.0% | 5.7% | 5.6% |
| Payout Ratio | 0.0% | 0.0% | 0.8% | — | — | — | — | 80.7% | 77.2% | 236.7% | 219.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.5% | 5.9% | 1.7% | — | — | — | — | 3.2% | 4.0% | 2.4% | 2.6% |
| FCF Yield | 26.0% | 15.7% | 13.0% | 9.2% | — | — | — | 3.3% | 4.3% | 4.5% | 9.4% |
| Buyback Yield | 9.1% | 5.5% | 4.5% | 4.4% | 3.6% | 1.3% | 0.5% | 0.0% | 9.6% | 0.0% | 11.6% |
| Total Shareholder Yield | 9.1% | 5.5% | 4.5% | 4.4% | 3.6% | 1.3% | 1.4% | 2.6% | 12.6% | 5.7% | 17.2% |
| Shares Outstanding | — | $401M | $433M | $438M | $464M | $478M | $477M | $481M | $505M | $499M | $508M |
Includes 30+ ratios · 22 years · Updated daily
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Quick answers to the most common questions about buying MLCO stock.
Melco Resorts & Entertainment Limited's current P/E ratio is 10.5x. The historical average is 32.6x.
Melco Resorts & Entertainment Limited's current EV/EBITDA is 6.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.8x.
Based on historical data, Melco Resorts & Entertainment Limited is trading at a P/E of 10.5x. Compare with industry peers and growth rates for a complete picture.
Melco Resorts & Entertainment Limited's current dividend yield is 0.00% with a payout ratio of 0.0%.
Melco Resorts & Entertainment Limited has 36.7% gross margin and 11.6% operating margin. Operating margin between 10-20% is typical for established companies.
Melco Resorts & Entertainment Limited's Debt/EBITDA ratio is 6.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Negative equity and high leverage
Valuation Discount Reflects Balance Sheet Risk
Melco's forward EV/EBITDA of 5.91x appears cheap relative to peers like Wynn (11.42x), but this discount likely reflects its significantly higher leverage and negative equity position, which the market is pricing as a material risk.
The valuation gap versus peers is substantial and appears to be a direct function of balance sheet risk rather than operational underperformance. While the P/E of 11.43x is not extreme, the EV/EBITDA multiple is the more relevant metric for a capital-intensive, high-debt business, and its discount suggests the market demands a higher return for bearing Melco's financial structure. Investors should monitor if this discount narrows as leverage improves or if it persists as a structural feature of the stock.
Gross Margin Compression Undermines Earning Power
Melco's gross margin has compressed sharply to 24.4% in Q2 2026 from a peak of 38.8% a year prior, a trend that appears driven by the fixed, high-rate gaming tax structure in Macau which caps profitability regardless of operational efficiency.
The severe margin compression indicates that the company's true earning power is being masked by a non-discretionary tax burden, making the gross margin a poor indicator of operational health. The operating margin of 10.3% is a more telling metric, revealing that after this fixed tax, the business retains a modest portion of revenue to cover its high fixed costs like labor and property maintenance. This structure leaves little room for error during periods of soft demand, as seen in the recent quarter.
Returns on Capital Remain Below Cost of Debt
Melco's ROIC of 1.9% in Q2 2026 is significantly below its implied cost of capital, suggesting the company is not generating sufficient returns to justify its massive asset base and heavy debt load, a trend that has persisted for over two years.
The consistently low ROIC, which has fluctuated between 1.3% and 2.7% over the last ten quarters, indicates a fundamental challenge in translating its $7.4 billion asset base into meaningful economic profit. This is compounded by the negative equity position, which means the company is effectively financing its operations entirely with debt that carries a higher cost than the returns being generated. The trend suggests capital is being deployed inefficiently, likely into low-return projects or to cover the high fixed-cost structure.
Extreme Leverage Constrains Financial Flexibility
With a D/EBITDA of 28.09x in Q2 2026 and a negative equity base, Melco's leverage is extreme, and the interest coverage ratio of 1.15x indicates that debt service is consuming nearly all of the company's operating income.
The leverage profile is the most critical risk factor, as the D/EBITDA multiple is exceptionally high and the interest coverage ratio is dangerously thin, leaving minimal buffer for earnings volatility. The negative equity position means traditional D/E ratios are meaningless, but the absolute debt load of $7.3 billion against a cash position of only $912.9 million highlights a significant refinancing risk. This leverage constrains the company's ability to invest in growth or weather a prolonged downturn in Macau.
Thin Liquidity Buffer Against High Fixed Costs
Melco's current ratio has compressed to 1.01 and its quick ratio is 0.98, indicating a minimal buffer to cover near-term obligations, which is particularly concerning given the company's high fixed-cost operating model and significant debt maturities.
The liquidity position has deteriorated from a current ratio of 1.36 in early 2024 to just 1.01, suggesting that working capital is being consumed to fund operations or debt service. The quick ratio falling below 1.0 indicates that the company may not be able to cover its immediate liabilities without relying on inventory or other less liquid assets. This thin buffer leaves the company vulnerable to any disruption in cash flow, such as a sudden drop in visitor spending or a tightening of credit markets.
The Misleading Safety of the Current Ratio
The current ratio of 1.01 is the most commonly misapplied metric for Melco, as it obscures the true financial risk posed by the company's negative equity, extreme leverage, and high fixed-cost structure.
Analysts often use the current ratio as a quick gauge of liquidity, but for Melco, it is dangerously misleading. The ratio suggests a balanced position, but it fails to account for the $7.3 billion in long-term debt that dwarfs the current assets and the negative equity base that provides no cushion. A more appropriate metric would be the debt service coverage ratio or a focus on the absolute cash position relative to near-term debt maturities, which would provide a clearer picture of the company's true financial vulnerability.