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The 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. As of today (2026-08-13), Melco Resorts and Entertainment's 3-Year Sortino Ratio is -0.59.
Melco Resorts and Entertainment (STU:MAS) 3-Year Sortino Ratio Explanation
The 3-Year Sortino Ratio inidicates the risk-adjusted return of an investment over the past three year. It is calculated as the annualized result of the average three-year monthly excess returns divided by the standard deviation of negative returns in the three-year period. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
Differnt from the Sharpe Ratio that penalizes both upside and downside volatility equally, the Sortino Ratio penalizes only those returns falling below a user-specified target or required rate of return. The expected returns here is set to the risk-free rate as well.
Melco Resorts and Entertainment 3-Year Sortino Ratio Related Terms
STU:MAS vs LVS, MGM, WYNN: 3-Year Sortino Ratio Comparison
For the Resorts & Casinos subindustry, Melco Resorts and Entertainment's 3-Year Sortino Ratio, along with its competitors' market caps and 3-Year Sortino Ratio 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 3-Year Sortino Ratio vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Melco Resorts and Entertainment's 3-Year Sortino Ratio distribution charts can be found below:
* The bar in red indicates where Melco Resorts and Entertainment's 3-Year Sortino Ratio falls into.
Melco Resorts and Entertainment 3-Year Sortino Ratio Calculation
The 3-Year Sortino Ratio measures the risk-adjusted return of an investment asset or portfolio in the last three year, focusing specifically on downside risk rather than total risk. A stock / portfolio's 3-Year Sortino Ratio can be calculated by dividing the difference between the three-year average monthly returns of the investment and the risk-free rate, by the standard deviation of the downside risks over the past three year.
A downside risk is a potential loss from the asset or investment. The Downside risk here is measured by the downside deviation, which is the standard deviation of negative returns.
Melco Resorts and Entertainment (STU:MAS) has a 3-Year Sortino Ratio of -0.59 as of Aug. 13, 2026. 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. View historical data for Melco Resorts and Entertainment and its competitors.
Is Melco Resorts and Entertainment's 3-Year Sortino Ratio too high?
Melco Resorts and Entertainment's current 3-Year Sortino Ratio is -0.59. Overall, Melco Resorts and Entertainment has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Melco Resorts and Entertainment's 3-Year Sortino Ratio compare to LVS and MGM?
Melco Resorts and Entertainment's 3-Year Sortino Ratio of -0.59 can be compared against companies in the Travel & Leisure industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year Sortino Ratio for a Travel & Leisure company?
A good 3-Year Sortino Ratio depends on the Travel & Leisure industry context. However, 3-Year Sortino Ratio 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 3-Year Sortino Ratio mean?
A high 3-Year Sortino Ratio can signal that a stock is expensive relative to its fundamentals. 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. View historical data for Melco Resorts and Entertainment and its competitors. Melco Resorts and Entertainment's current 3-Year Sortino Ratio is -0.59. 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 Possible Value Trap. The stock's GF Value™ is €7.19, compared to a current price of €4.76 — trading 33.8% below its estimated fair value. The current 3-Year Sortino Ratio is -0.59. Melco Resorts and Entertainment's overall GF Score™ is 72/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year Sortino Ratio calculated?
3-Year Sortino Ratio is calculated from a company's financial statements. For Melco Resorts and Entertainment (STU:MAS), the current 3-Year Sortino Ratio is -0.59 as of Aug. 13, 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 €4.76 is trading 33.8% below its estimated GF Value™ of €7.19.
GuruFocus considers Melco Resorts and Entertainment to be Possible Value Trap.
Key valuation signals for STU:MAS:
3-Year Sortino Ratio: -0.59
GF Value™: €7.19 vs. price of €4.76 (33.8% 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 & 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.
72GF Score
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