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U.S. Entertainment Industry Analysis

UpdatedFeb 17, 2026
DataAggregated Company Financials
Companies166
  • 7D-1.9%
  • 3M-18.6%
  • 1Y-10.6%
  • YTD-11.8%

Over the last 7 days, the Entertainment industry has dropped 1.9%, driven by a pullback from Netflix of 5.6%. Meanwhile, Spotify Technology actually outperformed within the industry, gaining 10% in the last week. Overall the industry is down 11% in 12 months. As for the next few years, earnings are expected to grow by 16% per annum.

Industry Valuation and Performance

Has the U.S. Entertainment Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 17 Feb 2026US$984.4bUS$286.6bUS$22.9b32.7x43x3.4x
Thu, 15 Jan 2026US$1.1tUS$281.3bUS$21.2b21.4x53.3x4x
Sat, 13 Dec 2025US$1.2tUS$281.3bUS$21.3b20.3x55.1x4.2x
Mon, 10 Nov 2025US$1.2tUS$277.3bUS$22.1b23.4x54.3x4.3x
Wed, 08 Oct 2025US$1.3tUS$274.7bUS$21.8b28.2x58.1x4.6x
Fri, 05 Sep 2025US$1.3tUS$274.5bUS$21.8b37.7x58.5x4.6x
Sun, 03 Aug 2025US$1.3tUS$291.1bUS$7.8b27.2x164.6x4.4x
Tue, 01 Jul 2025US$1.4tUS$288.9bUS$7.4b24.1x189.7x4.8x
Thu, 29 May 2025US$1.3tUS$288.1bUS$7.3b21.5x173.6x4.4x
Sat, 26 Apr 2025US$1.1tUS$284.4bUS$3.1b22.8x355.7x3.9x
Mon, 24 Mar 2025US$1.1tUS$289.4bUS$2.4b26.2x447.9x3.8x
Wed, 19 Feb 2025US$1.2tUS$288.1bUS$2.1b26.4x551.5x4.1x
Fri, 17 Jan 2025US$1.0tUS$284.3b-US$123,791.5919.6x-8174990.2x3.6x
Sun, 15 Dec 2024US$1.1tUS$284.7bUS$70.0m17.8x15250.9x3.8x
Tue, 12 Nov 2024US$933.1bUS$282.3b-US$429,949,444.8223.6x-2170.2x3.3x
Thu, 10 Oct 2024US$934.7bUS$298.9bUS$1.0b23.4x898x3.1x
Sat, 07 Sep 2024US$854.5bUS$299.2bUS$1.1b18.5x780x2.9x
Mon, 05 Aug 2024US$836.6bUS$296.4bUS$7.7b21.3x108.4x2.8x
Wed, 03 Jul 2024US$842.1bUS$291.1bUS$7.8b13.4x108.6x2.9x
Fri, 31 May 2024US$848.9bUS$291.5bUS$7.8b16.7x108.7x2.9x
Sun, 28 Apr 2024US$821.2bUS$289.5bUS$10.9b20.2x75.2x2.8x
Tue, 26 Mar 2024US$850.6bUS$288.0bUS$9.3b15.9x91.9x3x
Thu, 22 Feb 2024US$806.4bUS$284.8bUS$8.0b17.9x100.5x2.8x
Sat, 20 Jan 2024US$821.9bUS$296.0bUS$7.1b18.7x116.1x2.8x
Mon, 18 Dec 2023US$839.3bUS$296.9bUS$7.1b19.5x118.9x2.8x
Wed, 15 Nov 2023US$797.2bUS$289.9bUS$5.7b20.5x139.9x2.7x
Fri, 13 Oct 2023US$747.2bUS$287.4bUS$1.2b19.9x621.6x2.6x
Sun, 10 Sep 2023US$738.3bUS$286.2bUS$846.5m20.6x872.2x2.6x
Tue, 08 Aug 2023US$791.0bUS$285.9bUS$160.6m22x4925.6x2.8x
Thu, 06 Jul 2023US$781.7bUS$279.5b-US$2,331,758,891.0020.9x-335.2x2.8x
Sat, 03 Jun 2023US$741.5bUS$279.9b-US$2,167,851,592.0017.5x-342.1x2.6x
Mon, 01 May 2023US$740.7bUS$269.2b-US$1,551,413,501.0022x-477.4x2.8x
Wed, 29 Mar 2023US$732.7bUS$266.9b-US$965,681,089.0023.4x-758.8x2.7x
Fri, 24 Feb 2023US$720.2bUS$256.7b-US$447,715,739.0029.2x-1608.5x2.8x
Price to Earnings Ratio

-1608.5x


Total Market Cap: US$720.2bTotal Earnings: -US$447,715,739.00Total Revenue: US$256.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Entertainment Industry Price to Earnings3Y Average -68189x202420252026
Current Industry PE
  • Investors are optimistic on the American Entertainment industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 43.0x which is higher than its 3-year average PE of -68kx.
  • The industry is trading close to its 3-year average PS ratio of 3.4x.
Past Earnings Growth
  • Total earnings for the Entertainment industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 3.7% per year.
  • This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Telecom industry?

US Market-1.93%
Telecom-4.06%
Entertainment-1.91%
Movies and Entertainment-1.11%
Interactive Home Entertainment-6.68%
Industry PE
  • Investors are most optimistic about the Movies and Entertainment industry which is trading above its 3-year average PE ratio of 10.3x.
    • Analysts are expecting annual earnings growth of 11.6%, which is higher than its past year's earnings decline of 3.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Interactive Home Entertainment industry, expecting annual earnings growth of 44% over the next 5 years.
  • This is better than its past earnings decline of 8.3% per year.
  • In contrast, the Movies and Entertainment industry is expected to see its earnings grow by 12% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
LYV Live Nation EntertainmentUS$158.276.0%
+US$2.1b		2.3%PE114.1x
SPHR Sphere EntertainmentUS$115.7018.7%
+US$665.5m		142.9%PE123x
WBD Warner Bros. DiscoveryUS$27.990.7%
+US$471.1m		163.6%PE141.9x
MSGS Madison Square Garden SportsUS$291.484.2%
+US$282.1m		40.9%PS6.6x
BATR.K Atlanta Braves HoldingsUS$43.184.9%
+US$127.7m		7.8%PS3.8x

Latest News

TTWO
US$193.67
Take-Two Interactive Software
7D
-8.1%
1Y
-10.5%

TTWO: GenAI Efficiency And GPU Adoption Will Drive Future Repricing

Analysts have raised their implied fair value estimate for Take-Two Interactive Software from $275.00 to $301.00, citing recent price target increases across the Street along with updated assumptions for discount rate, revenue growth, profit margin, and future P/E multiples. Analyst Commentary Recent Street research around Take-Two Interactive Software has leaned constructive, with several bullish analysts revisiting their models, price targets, and ratings in light of updated assumptions on growth, profitability, and valuation multiples.
RBLX
US$63.17
Roblox
7D
-12.2%
1Y
-4.4%

Roblox Corporation (NYSE:RBLX) Stocks Pounded By 28% But Not Lagging Industry On Growth Or Pricing

Feb 15
Roblox Corporation (NYSE:RBLX) Stocks Pounded By 28% But Not Lagging Industry On Growth Or Pricing
LVO
US$5.19
LiveOne
7D
10.7%
1Y
-38.5%
SPHR
US$115.70
Sphere Entertainment
7D
18.7%
1Y
142.9%
LYV
US$158.27
Live Nation Entertainment
7D
6.0%
1Y
2.3%
CNVS
US$2.50
Cineverse
7D
36.6%
1Y
-45.8%
DIS
US$105.45
Walt Disney
7D
-4.1%
1Y
-3.8%
SPOT
US$458.34
Spotify Technology
7D
-3.7%
1Y
-27.3%

Spotify - A Fundamental and Historical Valuation

️Business Overview Key Metrics Total: -1/17 +1 ✅ Projected Operating Margin: 17.56% +1 ✅ Projected 5-Year Revenue CAGR: 10.87% +0 ⚠️ Last 5-Year ROIC: 4.68% -2 ❌ Estimated Cost of Capital: 7.71% (greater than ROIC) -1 ❌ Last 5-Year Shares Outstanding CAGR: +2.07% +1 ✅ Projected 5-Year EPS CAGR: 15.46% +0 ⚠️ Projected 5-Year Dividend CAGR: N/A +1 ✅ Estimated Debt Rating: A1 -1 ❌ Morningstar Moat: Narrow -1 ❌ Morningstar Uncertainty: High Despite its Narrow Moat rating by Morningstar, Spotify still shows an operating margin around ~15-20% and expanding. Its revenue and EPS growth is also solid between 10-15%.
NFLX
US$76.87
Netflix
7D
-6.5%
1Y
-25.8%
WBD
US$27.99
Warner Bros. Discovery
7D
0.7%
1Y
163.6%
WMG
US$29.45
Warner Music Group
7D
-4.4%
1Y
-18.0%

WMG: AI Licensing Deals Will Support Stronger Long Term Cash Generation

Analysts now see a slightly lower fair value for Warner Music Group, trimming their price target by about US$0.22 as they factor in updated assumptions on revenue growth, margins, and a more conservative future P/E multiple, while still referencing recent mixed research that includes a new bullish initiation and a modest target cut from the Street. Analyst Commentary Bullish Takeaways Bullish analysts see room for Warner Music Group to execute on its growth plans, which they factor into a supportive long term earnings profile and a constructive P/E framework.
TME
US$15.85
Tencent Music Entertainment Group
7D
-6.1%
1Y
16.5%
MSGE
US$62.51
Madison Square Garden Entertainment
7D
3.5%
1Y
68.7%

MSGE: Future Returns Will Rely On Scarce Premium Venues And Fan Experiences

Analysts have raised their fair value estimate for Madison Square Garden Entertainment to $68.71 from $62.43, citing updated assumptions for the discount rate, revenue growth, profit margins, and future P/E multiples in response to recent price target increases from several firms in Street research. Analyst Commentary Recent Street research on Madison Square Garden Entertainment has centered on higher price targets and updated views on how the business could support those valuations over time.
MSGS
US$291.48
Madison Square Garden Sports
7D
4.2%
1Y
40.9%

MSGS: Future Asset Discount Is Expected To Persist As Buyout Program Progresses

Narrative Update The analyst price target for Madison Square Garden Sports has shifted from US$280.50 to US$311.50, with analysts pointing to updated assumptions for discount rate, revenue growth, profit margin and future P/E, as well as recent target increases from several firms, as the main drivers of this change. Analyst Commentary Recent Street research on Madison Square Garden Sports has centered on updated price targets and refreshed assumptions for discount rate, revenue growth, profit margins and future P/E, with several firms adjusting their targets by meaningful dollar amounts.
BATR.K
US$43.18
Atlanta Braves Holdings
7D
4.9%
1Y
7.8%
TKO
US$206.75
TKO Group Holdings
7D
-3.4%
1Y
20.2%