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U.S. Entertainment Industry Analysis

UpdatedFeb 16, 2026
DataAggregated Company Financials
Companies169
  • 7D-1.8%
  • 3M-17.2%
  • 1Y-10.7%
  • YTD-11.8%

Over the last 7 days, the Entertainment industry has dropped 1.8%, 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
Mon, 16 Feb 2026US$984.4bUS$286.6bUS$22.9b32.7x43x3.4x
Wed, 14 Jan 2026US$1.1tUS$281.3bUS$21.2b22.6x53x4x
Fri, 12 Dec 2025US$1.2tUS$281.3bUS$21.3b20.8x54.5x4.1x
Sun, 09 Nov 2025US$1.2tUS$277.3bUS$22.1b23.4x54.3x4.3x
Tue, 07 Oct 2025US$1.3tUS$274.8bUS$21.8b29.4x57.7x4.6x
Thu, 04 Sep 2025US$1.3tUS$274.5bUS$21.8b38.2x58.1x4.6x
Sat, 02 Aug 2025US$1.3tUS$290.9bUS$7.8b25.9x168.8x4.5x
Mon, 30 Jun 2025US$1.4tUS$288.8bUS$7.5b23.7x183.3x4.8x
Wed, 28 May 2025US$1.2tUS$288.2bUS$7.3b21.4x170.5x4.3x
Fri, 25 Apr 2025US$1.1tUS$284.4bUS$3.1b22.5x344.3x3.8x
Sun, 23 Mar 2025US$1.1tUS$289.4bUS$2.4b26.2x447.9x3.8x
Tue, 18 Feb 2025US$1.2tUS$288.3bUS$2.3b26.2x519.5x4.1x
Thu, 16 Jan 2025US$995.7bUS$284.3b-US$93,688.4619.7x-10627879.9x3.5x
Sat, 14 Dec 2024US$1.1tUS$284.7bUS$69.0m17.8x15622.5x3.8x
Mon, 11 Nov 2024US$917.6bUS$282.5b-US$418,969,072.1422.8x-2190.2x3.2x
Wed, 09 Oct 2024US$930.1bUS$299.1bUS$1.1b23x878.9x3.1x
Fri, 06 Sep 2024US$869.3bUS$299.2bUS$1.1b18.7x794.7x2.9x
Sun, 04 Aug 2024US$836.9bUS$296.4bUS$7.7b21.3x108.5x2.8x
Tue, 02 Jul 2024US$863.1bUS$291.1bUS$7.8b14.4x111.1x3x
Thu, 30 May 2024US$851.7bUS$291.4bUS$7.8b16.4x109.4x2.9x
Sat, 27 Apr 2024US$818.8bUS$289.6bUS$10.9b20.2x75x2.8x
Mon, 25 Mar 2024US$850.6bUS$287.9bUS$9.2b16.2x92x3x
Wed, 21 Feb 2024US$806.4bUS$284.8bUS$8.0b18.1x100.5x2.8x
Fri, 19 Jan 2024US$820.4bUS$295.8bUS$7.1b18.9x116.2x2.8x
Sun, 17 Dec 2023US$839.3bUS$297.0bUS$7.1b18.1x118.5x2.8x
Tue, 14 Nov 2023US$797.1bUS$289.6bUS$5.7b20.7x140.2x2.8x
Thu, 12 Oct 2023US$747.3bUS$287.5bUS$1.2b20.1x626x2.6x
Sat, 09 Sep 2023US$744.2bUS$286.2bUS$846.5m20.6x879.2x2.6x
Mon, 07 Aug 2023US$785.0bUS$286.0bUS$167.4m22.1x4689.2x2.7x
Wed, 05 Jul 2023US$783.9bUS$279.7b-US$2,324,439,908.0021.6x-337.2x2.8x
Fri, 02 Jun 2023US$736.1bUS$279.9b-US$2,178,198,579.0017.5x-338x2.6x
Sun, 30 Apr 2023US$740.7bUS$269.2b-US$1,551,413,501.0022x-477.4x2.8x
Tue, 28 Mar 2023US$732.2bUS$266.8b-US$1,488,065,657.0023.5x-492.1x2.7x
Thu, 23 Feb 2023US$727.6bUS$256.7b-US$184,924,872.0029.5x-3934.5x2.8x
Price to Earnings Ratio

-3934.5x


Total Market Cap: US$727.6bTotal Earnings: -US$184,924,872.00Total Revenue: US$256.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Entertainment Industry Price to Earnings3Y Average -68190.5x202420252026
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 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-1.34%
Telecom-3.23%
Entertainment-1.83%
Movies and Entertainment-1.81%
Interactive Home Entertainment-1.93%
Industry PE
  • Investors are most optimistic about the Movies and Entertainment industry which is trading above its 3-year average PE ratio of 0.23x.
    • 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
SPOT Spotify TechnologyUS$458.3410.5%
+US$8.8b		-28.2%PE35.9x
LYV Live Nation EntertainmentUS$158.277.0%
+US$2.4b		2.9%PE114.1x
WBD Warner Bros. DiscoveryUS$27.992.9%
+US$1.9b		170.7%PE141.9x
SPHR Sphere EntertainmentUS$115.7021.9%
+US$755.6m		140.0%PE123x
MSGS Madison Square Garden SportsUS$291.484.4%
+US$293.9m		37.7%PS6.6x

Latest News

RBLX
US$63.17
Roblox
7D
-14.0%
1Y
-5.4%

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
ROKU
US$90.06
Roku
7D
1.7%
1Y
-9.1%
SPHR
US$115.70
Sphere Entertainment
7D
21.9%
1Y
140.0%
LYV
US$158.27
Live Nation Entertainment
7D
7.0%
1Y
2.9%
STUB
US$9.23
StubHub Holdings
7D
-8.7%
1Y
n/a
DIS
US$105.45
Walt Disney
7D
-1.6%
1Y
-4.5%
SPOT
US$458.34
Spotify Technology
7D
10.5%
1Y
-28.2%

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
-5.6%
1Y
-27.4%
LION
US$8.09
Lionsgate Studios
7D
-12.2%
1Y
-10.7%
WBD
US$27.99
Warner Bros. Discovery
7D
2.9%
1Y
170.7%
TME
US$15.85
Tencent Music Entertainment Group
7D
-2.6%
1Y
16.5%
MSGS
US$291.48
Madison Square Garden Sports
7D
4.4%
1Y
37.7%

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
8.8%
1Y
8.1%
TTWO
US$193.67
Take-Two Interactive Software
7D
-5.5%
1Y
-7.2%
FWON.K
US$85.55
Formula One Group
7D
1.4%
1Y
-13.1%

FWON.K: Third Party Race Promotion And 2026 Deals Will Test Fair Value

Narrative Update The analyst price target for Formula One Group has been nudged higher, with a small fair value increase to about $95.82 as analysts factor in slightly stronger revenue growth, modestly higher profit margins, a lower discount rate, and a marginally lower future P/E assumption following recent price target raises and an upgrade to Outperform. Analyst Commentary Recent research on Formula One Group has leaned constructive on the story, with several firms lifting price targets and one major upgrade to Outperform.
TKO
US$206.75
TKO Group Holdings
7D
-1.3%
1Y
17.8%