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QuestionsCasino stock
Toh Yong Gui asked 4 years ago
2 Answers
Toh Yong Gui answered 4 years ago

What valuation method will you use on casino stock such as Las Vegas sands, MGM and MPEL?

Victor Chng answered 4 years ago

Hi Yong Gui,
 
I think using Price to Free Cash Flow (FCF) is ideal for Casino stocks. For instance, if the company cash flow is $100 million and capex is $20 million, then the FCF will be $80 million. You want to buy into them below their average Price to FCF.