In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
STU:MAS's Price-to-Net-Net-Working-Capital is not ranked *
in the Travel & Leisure industry.
Industry Median: 6.835 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Melco Resorts and Entertainment (STU:MAS) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Melco Resorts and Entertainment Net-Net Working Capital Related Terms
Melco Resorts and Entertainment Net-Net Working Capital Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Melco Resorts and Entertainment Net-Net Working Capital Chart
STU:MAS vs LVS, MGM, WYNN: Net-Net Working Capital Comparison
For the Resorts & Casinos subindustry, Melco Resorts and Entertainment's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Melco Resorts and Entertainment Price-to-Net-Net-Working-Capital vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Melco Resorts and Entertainment's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Melco Resorts and Entertainment's Price-to-Net-Net-Working-Capital falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of €-16.82 mean?
Melco Resorts and Entertainment (STU:MAS) has a Net-Net Working Capital of €-16.82 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Melco Resorts and Entertainment According to the industry distribution chart, Melco Resorts and Entertainment ranks #999999 out of 214 companies in the Travel & Leisure industry.
Is Melco Resorts and Entertainment's Net-Net Working Capital too high?
Melco Resorts and Entertainment's current Net-Net Working Capital is €-16.82. Based on the distribution chart, Melco Resorts and Entertainment ranks #999999 out of 214 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers. Overall, Melco Resorts and Entertainment has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Melco Resorts and Entertainment's Net-Net Working Capital compare to LVS and MGM?
According to the Travel & Leisure industry distribution chart, Melco Resorts and Entertainment ranks #999999 out of 214 companies for Net-Net Working Capital. This places Melco Resorts and Entertainment in the lower half of its industry. The industry median Net-Net Working Capital is 6.84. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Travel & Leisure company?
The median Net-Net Working Capital among Travel & Leisure companies is 6.84, based on 214 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Melco Resorts and Entertainment For the Travel & Leisure industry, the median Net-Net Working Capital is 6.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melco Resorts and Entertainment's current Net-Net Working Capital is €-16.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Melco Resorts and Entertainment stock overvalued right now?
Based on GuruFocus' analysis, Melco Resorts and Entertainment (STU:MAS) is currently considered Modestly Undervalued. The stock's GF Value™ is €6.36, compared to a current price of €4.80 — trading 24.5% below its estimated fair value. The current Net-Net Working Capital is €-16.82. Melco Resorts and Entertainment's overall GF Score™ is 75/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Melco Resorts and Entertainment (STU:MAS), the current Net-Net Working Capital is €-16.82 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Melco Resorts and Entertainment (STU:MAS) Overvalued in 2026?
Based on GuruFocus' analysis, Melco Resorts and Entertainment stock appears to be undervalued.
The current stock price of €4.80 is trading 24.5% below its estimated GF Value™ of €6.36.
GuruFocus considers Melco Resorts and Entertainment to be Modestly Undervalued.
Key valuation signals for STU:MAS:
Net-Net Working Capital: €-16.82
GF Value™: €6.36 vs. price of €4.80 (24.5% below fair value)
No single metric tells the full story. See the STU:MAS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Melco Resorts and Entertainment Business Description
Melco Resorts & Entertainment is one of only six licensed casino operators in Macao. It operates Altira, a complex focused on premium customers; City of Dreams, an integrated resort in Cotai serving both mass-market and premium patrons; and Mocha Clubs' electronic gaming machines. The company also has a majority interest in Studio City, which opened in 2015. Outside Macao, Melco owns City of Dreams Manila in the Philippines and City of Dreams Mediterranean in Cyprus. The business mix in terms of adjusted EBITDA was about 84% from Macao, with the rest from overseas as of 2025.
75GF Score
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