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With no specific news event driving attention today, Live Nation Entertainment (LYV) is drawing interest on its fundamentals, including US$25.2b in revenue and a reported net income loss of US$54.8m.
See our latest analysis for Live Nation Entertainment.
Live Nation Entertainment’s recent share price has been choppy, with a 1-day share price return of 2.05% alongside a 30-day share price return of negative 8.30%, while the 1-year total shareholder return of 13.87% and 3-year total shareholder return of about 2x suggest longer term momentum has been much stronger.
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With the share price easing over the past month despite a 1 year total return of 13.87%, and with Live Nation trading at a small premium to one intrinsic value estimate, investors may wish to consider whether this represents a fresh opportunity or whether the market is already pricing in future growth.
At a last close of $148.69 versus a narrative fair value of $183.27, the current price sits well below what this widely followed view implies.
Live Nation is in the early stages of expanding its presence across high-growth international markets such as Latin America (notably Mexico and Brazil) and APAC (notably Japan). It is leveraging surging demand for live events among younger, increasingly affluent urban populations globally, which is expected to materially influence revenue through increased ticket sales, new venues, and event launches.
Want to understand why this narrative places such a premium on Live Nation’s future? It focuses on how ticket volumes, pricing power, and margins evolve together. The numbers behind that mix are anything but conservative.
Result: Fair Value of $183.27 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this narrative can quickly be tested if regulatory outcomes around Ticketmaster are harsher than expected or if international expansion results in lower margin, slower scaling venues.
Find out about the key risks to this Live Nation Entertainment narrative.
The analyst narrative leans on future earnings to argue Live Nation Entertainment looks undervalued, yet the current P/S of 1.4x tells a more mixed story. It is slightly expensive relative to the US Entertainment industry at 1.3x, but cheaper than peers at 3.2x and below a fair ratio of 1.9x, which suggests room for the multiple to move if sentiment shifts.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source au.finance.yahoo.com ’
