Update shared on 12 Dec 2025
Fair value Increased 14%Analysts have raised their price target on Lionsgate Studios by approximately 14 percent to reflect improved long term profit margin expectations and a more reasonable future earnings multiple, even as they incorporate a slightly higher discount rate and revenue headwinds into their models.
Valuation Changes
- The fair value estimate has risen slightly, moving from 7.0 to 8.0, reflecting higher confidence in long-term earnings power.
- The discount rate has increased marginally, from 12.32 percent to 12.5 percent, indicating a modestly higher required return.
- The revenue growth outlook has weakened slightly, with the modeled decline deepening from approximately minus 9.8 percent to about minus 10.1 percent.
- Net profit margin expectations have risen significantly, improving from roughly 1.5 percent to just over 10.3 percent, implying stronger operating leverage.
- The future P/E multiple has fallen sharply, from about 79.8x to roughly 14.0x, suggesting a more conservative valuation framework despite stronger margin assumptions.
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