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U.S. Entertainment Industry Analysis

UpdatedJan 12, 2026
DataAggregated Company Financials
Companies169
  • 7D-1.8%
  • 3M-15.0%
  • 1Y17.6%
  • YTD-1.3%

Over the last 7 days, the Entertainment industry has dropped 1.3%, driven by pullbacks in Spotify Technology and Netflix of 6.2% and 1.7%, respectively. This takes the industry's 12 month performance to a gain of 17%. As for the next few years, earnings are expected to grow by 19% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 12 Jan 2026US$1.1tUS$281.3bUS$21.2b19.4x53.2x4x
Wed, 10 Dec 2025US$1.2tUS$281.1bUS$21.3b21.6x55.1x4.2x
Fri, 07 Nov 2025US$1.2tUS$276.9bUS$21.8b24.5x55x4.3x
Sun, 05 Oct 2025US$1.3tUS$274.9bUS$21.8b30.9x57.7x4.6x
Tue, 02 Sep 2025US$1.4tUS$293.9bUS$23.0b39.3x59.6x4.7x
Thu, 31 Jul 2025US$1.3tUS$290.2bUS$7.8b25.2x167.4x4.5x
Sat, 28 Jun 2025US$1.4tUS$288.8bUS$7.5b24.7x184.9x4.8x
Mon, 26 May 2025US$1.2tUS$288.3bUS$7.3b20.9x170.3x4.3x
Wed, 23 Apr 2025US$1.0tUS$284.4bUS$3.1b21.8x326.1x3.6x
Fri, 21 Mar 2025US$1.1tUS$289.5bUS$2.4b24.6x444.4x3.7x
Sun, 16 Feb 2025US$1.2tUS$288.3bUS$2.3b26.2x519.3x4.1x
Tue, 14 Jan 2025US$996.9bUS$284.1b-US$5,704,806.0119.5x-174747.9x3.5x
Thu, 12 Dec 2024US$1.1tUS$284.7bUS$70.6m16.1x15000.7x3.7x
Sat, 09 Nov 2024US$937.2bUS$282.5b-US$417,969,072.1422.8x-2242.2x3.3x
Mon, 07 Oct 2024US$948.8bUS$299.1bUS$1.1b22.9x896.2x3.2x
Wed, 04 Sep 2024US$889.6bUS$299.0bUS$1.1b18.7x825.5x3x
Fri, 02 Aug 2024US$842.2bUS$292.9bUS$8.7b21.4x96.5x2.9x
Sun, 30 Jun 2024US$863.1bUS$291.1bUS$7.8b14.3x111.1x3x
Tue, 28 May 2024US$850.8bUS$291.5bUS$7.8b16.9x109.2x2.9x
Thu, 25 Apr 2024US$826.9bUS$289.4bUS$10.8b19.9x76.7x2.9x
Sat, 23 Mar 2024US$850.6bUS$287.9bUS$9.2b16.2x92x3x
Mon, 19 Feb 2024US$817.1bUS$284.7bUS$8.0b18.1x101.9x2.9x
Wed, 17 Jan 2024US$830.5bUS$296.8bUS$7.0b19.1x118x2.8x
Fri, 15 Dec 2023US$846.2bUS$297.1bUS$7.1b18x119.5x2.8x
Sun, 12 Nov 2023US$793.8bUS$289.6bUS$5.7b20.5x139.6x2.7x
Tue, 10 Oct 2023US$746.3bUS$287.5bUS$1.2b19.8x620.5x2.6x
Thu, 07 Sep 2023US$750.2bUS$286.3bUS$858.4m20.6x874x2.6x
Sat, 05 Aug 2023US$782.3bUS$286.0bUS$248.4m22.1x3149.8x2.7x
Mon, 03 Jul 2023US$776.7bUS$279.5b-US$2,342,517,785.0021.3x-331.6x2.8x
Wed, 31 May 2023US$726.5bUS$279.9b-US$2,394,777,815.0017.6x-303.4x2.6x
Fri, 28 Apr 2023US$729.3bUS$269.1b-US$1,593,144,584.0023x-457.7x2.7x
Sun, 26 Mar 2023US$731.8bUS$266.8b-US$1,484,331,628.0024.3x-493x2.7x
Tue, 21 Feb 2023US$746.0bUS$256.8b-US$488,673,266.0030.2x-1526.6x2.9x
Thu, 19 Jan 2023US$700.6bUS$253.4bUS$1.0b30x686.6x2.8x
Price to Earnings Ratio

686.6x


Total Market Cap: US$700.6bTotal Earnings: US$1.0bTotal Revenue: US$253.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Entertainment Industry Price to Earnings3Y Average -68227.5x202420252026
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 53.2x which is higher than its 3-year average PE of -68kx.
  • The 3-year average PS ratio of 3.3x is lower than the industry's current PS ratio of 4.0x.
Past Earnings Growth
  • The earnings for companies in the Entertainment industry have grown 175% per year over the last three years.
  • Revenues for these companies have grown 3.5% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

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

US Market1.24%
Telecom1.32%
Entertainment-1.80%
Movies and Entertainment-1.53%
Interactive Home Entertainment-3.55%
Industry PE
  • Investors are most optimistic about the Movies and Entertainment industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 16.0%, which is lower than the prior year's growth of 34.1% per year.
Forecasted Growth
  • Analysts are most optimistic on the Interactive Home Entertainment industry, expecting annual earnings growth of 42% over the next 5 years.
  • This is better than its past earnings decline of 3.0% per year.
  • In contrast, the Movies and Entertainment industry is expected to see its earnings grow by 16% 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
DIS Walt DisneyUS$115.883.6%
+US$7.2b		6.7%PE16.7x
WBD Warner Bros. DiscoveryUS$28.891.3%
+US$929.8m		197.8%PE146.5x
THH TryHard HoldingsUS$29.4744.7%
+US$455.7m		n/aPE15410x
ROKU RokuUS$111.172.3%
+US$362.0m		40.4%PS3.6x
WMG Warner Music GroupUS$31.011.9%
+US$297.8m		5.7%PE44.9x

Latest News

MSGS
US$265.35
Madison Square Garden Sports
7D
2.5%
1Y
25.1%

MSGS: Discount To Private Market Value Will Likely Persist Despite Recent Miss

Narrative Update: Madison Square Garden Sports Analyst Pricing Shift Analysts have trimmed their price target on Madison Square Garden Sports to $268 from $270, citing what they view as a sizable discount to private market value for the Knicks and Rangers, supported by recent sales of peer franchises and a modest offseason shortfall tied to lower league distributions. Analyst Commentary Recent commentary around Madison Square Garden Sports has centered on how the market is pricing the Knicks and Rangers relative to what some see as higher private market values.
WMG
US$31.01
Warner Music Group
7D
1.9%
1Y
5.7%

Should You Think About Buying Warner Music Group Corp. (NASDAQ:WMG) Now?

Jan 07
Should You Think About Buying Warner Music Group Corp. (NASDAQ:WMG) Now?
LYV
US$146.07
Live Nation Entertainment
7D
0.5%
1Y
13.7%
RBLX
US$73.27
Roblox
7D
-9.5%
1Y
18.5%

RBLX: Advertising And User Content Monetization Will Reshape Long Term Earnings Power

Analysts have nudged their Roblox fair value estimate up by $5 to $180 as they factor in updated Street research that points to stronger monetization potential from advertising and user generated content, while also acknowledging recent target cuts that reflect higher investment and more tempered bookings expectations. Analyst Commentary Recent Street research on Roblox reflects a split view, with some firms trimming targets and others highlighting what they see as meaningful upside tied to ads, user generated content and platform scale.
TME
US$17.35
Tencent Music Entertainment Group
7D
-2.9%
1Y
61.5%

TME: Post Earnings Pullback Will Highlight Resilient User Monetization Story

Analysts have trimmed their fair value estimate for Tencent Music Entertainment Group by about $0.11 to $26.92, reflecting slightly lower margin and P/E assumptions, even as they point to solid recent results and ongoing debate around competition and earnings mix. Analyst Commentary Recent Street research on Tencent Music Entertainment Group highlights a mix of optimism around execution and user trends alongside a more cautious view on margins, earnings power, and competitive risk.
TTWO
US$250.71
Take-Two Interactive Software
7D
-0.4%
1Y
40.4%
ROKU
US$111.17
Roku
7D
2.3%
1Y
40.4%

ROKU: Monetization Hopes And Buybacks May Not Justify Rich Multiple

Analysts have lifted their price target for Roku to $87.33 from $73.63, reflecting updated assumptions that include higher revenue growth, improved profit margins, a slightly lower discount rate, and a more conservative future P/E multiple. This view is supported by recent research pointing to solid quarterly execution, improving platform fundamentals, and growing confidence in the company’s ability to monetize its platform and sustain momentum into 2026.
NFLX
US$89.46
Netflix
7D
-1.7%
1Y
6.8%

NFLX: Future Returns Will Weigh Warner Bid Uncertainty And Advertising Momentum

Analysts have trimmed their fair value narrative for Netflix to reflect slightly lower long term revenue growth and profit margin assumptions, alongside a modestly higher future P/E multiple. Recent price target updates are clustered around stock split adjusted levels such as US$110, US$1,350, US$1,385, US$1,400 and US$1,530, as they weigh potential Warner Bros.
SPOT
US$539.37
Spotify Technology
7D
-6.2%
1Y
17.4%

SPOT: Pricing Power And AI Collaboration Will Shape Balanced Risk Reward Outlook

Analysts have nudged their price targets for Spotify higher, citing a supportive mix of pricing power, a constructive view on music industry economics, and a willingness to underwrite a richer future P/E multiple of around 38.7x. Analyst Commentary Recent research on Spotify reflects a mix of enthusiasm for the business model and pricing potential alongside debate over how much optimism is already reflected in the share price.
FWON.K
US$90.28
Formula One Group
7D
-7.9%
1Y
-1.0%

FWON.K: Higher Media Hopes Will Face Mounting Execution And Margin Risks

Analysts have raised their price target for Formula One Group from approximately $89.00 to about $96.00, citing a higher long term valuation multiple despite moderating growth and margin expectations, in line with recent Street target increases. Analyst Commentary Recent commentary from bearish analysts has highlighted that, even with upward revisions to select price targets, the risk reward profile for Formula One Group is becoming less compelling at current levels.
TKO
US$199.63
TKO Group Holdings
7D
-3.5%
1Y
42.4%
DIS
US$115.88
Walt Disney
7D
3.6%
1Y
6.7%
WBD
US$28.89
Warner Bros. Discovery
7D
1.3%
1Y
197.8%

WBD: Bidding War Optimism Will Likely Fade Under Regulatory And Deal Execution Risks

Analysts have raised their fair value estimate for Warner Bros. Discovery to $20 from $10 per share, reflecting a lower perceived risk profile, an improved margin outlook and higher prospective takeout valuations amid rising price targets and renewed M&A speculation around the studio and streaming assets.
STUB
US$12.77
StubHub Holdings
7D
-10.6%
1Y
n/a
MANU
US$16.65
Manchester United
7D
5.5%
1Y
2.9%
THH
US$29.47
TryHard Holdings
7D
44.7%
1Y
n/a