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U.S. Entertainment Industry Analysis

UpdatedFeb 24, 2026
DataAggregated Company Financials
Companies165
  • 7D-0.4%
  • 3M-14.3%
  • 1Y-7.7%
  • YTD-12.2%

Over the last 7 days, the Entertainment industry has remained flat, although notably Warner Bros. Discovery gained 3.3%. Unfortunately though, the industry is down 7.7% over the past 12 months. Earnings are forecast to grow by 17% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 24 Feb 2026US$1.0tUS$287.0bUS$22.5b29.2x44.6x3.5x
Thu, 22 Jan 2026US$1.1tUS$283.2bUS$21.8b20.2x50.5x3.9x
Sat, 20 Dec 2025US$1.2tUS$281.3bUS$21.3b20.5x54.1x4.1x
Mon, 17 Nov 2025US$1.2tUS$278.9bUS$22.8b20x52.3x4.3x
Wed, 15 Oct 2025US$1.3tUS$274.6bUS$21.8b28.1x58.7x4.7x
Fri, 12 Sep 2025US$1.3tUS$274.7bUS$21.8b34.6x59.5x4.7x
Sun, 10 Aug 2025US$1.3tUS$293.6bUS$22.3b30.6x59.5x4.5x
Tue, 08 Jul 2025US$1.4tUS$288.8bUS$7.3b29.3x186.4x4.7x
Thu, 05 Jun 2025US$1.3tUS$288.3bUS$7.3b22.9x174.8x4.4x
Sat, 03 May 2025US$1.1tUS$284.9bUS$3.4b24.8x338.9x4x
Mon, 31 Mar 2025US$1.1tUS$282.4bUS$2.5b24.9x418.4x3.7x
Wed, 26 Feb 2025US$1.1tUS$288.3bUS$2.6b24.3x436.2x3.9x
Fri, 24 Jan 2025US$1.1tUS$285.9bUS$944.4m19.5x1131.7x3.7x
Sun, 22 Dec 2024US$1.0tUS$284.5bUS$50.2m17.4x20822.5x3.7x
Tue, 19 Nov 2024US$991.6bUS$284.9bUS$184.5m21.9x5375.5x3.5x
Thu, 17 Oct 2024US$931.4bUS$298.6bUS$1.0b24.5x919.2x3.1x
Sat, 14 Sep 2024US$876.0bUS$299.1bUS$1.0b16.7x842.4x2.9x
Mon, 12 Aug 2024US$839.7bUS$297.9bUS$1.8b18x477.8x2.8x
Wed, 10 Jul 2024US$847.2bUS$287.8bUS$7.4b14x114.8x2.9x
Fri, 07 Jun 2024US$861.4bUS$291.4bUS$7.8b14.8x110.7x3x
Sun, 05 May 2024US$843.7bUS$290.3bUS$10.9b20.4x77.5x2.9x
Tue, 02 Apr 2024US$852.9bUS$287.7bUS$9.3b18.4x91.6x3x
Thu, 29 Feb 2024US$821.3bUS$286.1bUS$9.5b18.9x86.2x2.9x
Sat, 27 Jan 2024US$880.6bUS$297.0bUS$8.0b20.1x110.5x3x
Mon, 25 Dec 2023US$831.0bUS$297.1bUS$7.0b19.5x118x2.8x
Wed, 22 Nov 2023US$834.6bUS$296.6bUS$6.8b21.2x123.5x2.8x
Fri, 20 Oct 2023US$745.7bUS$287.9bUS$1.5b20.9x509.2x2.6x
Sun, 17 Sep 2023US$742.8bUS$286.4bUS$874.9m20.7x849x2.6x
Tue, 15 Aug 2023US$775.6bUS$287.6b-US$1,393,585,273.0027.1x-556.6x2.7x
Thu, 13 Jul 2023US$799.5bUS$280.2b-US$2,325,796,749.0022.2x-343.7x2.9x
Sat, 10 Jun 2023US$765.3bUS$279.8b-US$2,186,936,749.0018.6x-350x2.7x
Mon, 08 May 2023US$734.1bUS$278.1b-US$3,021,159,847.0021.5x-243x2.6x
Wed, 05 Apr 2023US$764.7bUS$266.8b-US$1,069,939,630.0025x-714.7x2.9x
Fri, 03 Mar 2023US$713.8bUS$265.8b-US$2,827,629,984.0029.6x-252.4x2.7x
Price to Earnings Ratio

-252.4x


Total Market Cap: US$713.8bTotal Earnings: -US$2,827,629,984.00Total Revenue: US$265.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Entertainment Industry Price to Earnings3Y Average -68176.8x202420252026
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 44.6x 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 2.6% 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-0.35%
Telecom0.80%
Entertainment-0.44%
Interactive Home Entertainment-0.29%
Movies and Entertainment-0.47%
Industry PE
  • Investors are most optimistic about the Movies and Entertainment industry even though it's trading below its 3-year average PE ratio of 55.0x.
    • Analysts are expecting annual earnings growth of 13.3%, which is higher than its past year's earnings decline of 10.1% 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 13% 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
WBD Warner Bros. DiscoveryUS$28.923.3%
+US$2.3b		160.8%PE146.7x
SPOT Spotify TechnologyUS$467.832.1%
+US$2.0b		-22.2%PE36.9x
FWON.K Formula One GroupUS$87.812.6%
+US$565.0m		-9.5%PE98.9x
MSGS Madison Square Garden SportsUS$314.097.8%
+US$544.2m		55.0%PS7.1x
TTWO Take-Two Interactive SoftwareUS$195.591.0%
+US$355.5m		-7.7%PS5.5x

Latest News

HUYA
US$3.94
HUYA
7D
-7.9%
1Y
7.4%
WBD
US$28.92
Warner Bros. Discovery
7D
3.3%
1Y
160.8%

WBD: M&A Outcome Reliance Will Likely Deepen As Regulatory Scrutiny Builds

Analysts have nudged their fair value estimate for Warner Bros. Discovery higher from $20.00 to about $22.17, pointing to updated deal math around the proposed Netflix bid for key studio and streaming assets and residual value for the remaining Discovery business, even as some firms shift to Neutral ratings and focus more on M&A outcomes than standalone growth.
LION
US$8.41
Lionsgate Studios
7D
4.0%
1Y
-5.7%

LION: Mnuchin Agreement And Higher Margins Will Reshape Future Earnings Power

Analysts have raised their price target on Lionsgate Studios from about $8.61 to approximately $11.06 per share, citing updated assumptions that include a higher profit margin outlook, a revised future P/E multiple, and adjusted views on revenue trends and discount rates. What's in the News Lionsgate Studios expanded its board by one seat to add Steven Mnuchin, reflecting an agreement with him and his firm Liberty 77 Capital LP (Key Developments).
CNK
US$25.90
Cinemark Holdings
7D
4.1%
1Y
-4.1%

CNK: 2026 Margin Uncertainty Will Likely Restrain Share Price Potential

Analysts have nudged their average price targets higher for Cinemark, with our fair value estimate moving from $22.50 to $23.74 as they factor in updated box office expectations, ongoing margin discussions for 2026, and mixed but generally constructive recent target revisions across the Street. Analyst Commentary Street research on Cinemark is mixed, with some firms lifting price targets after the latest quarterly update while others stay cautious on execution and long term profitability.
MSGS
US$314.09
Madison Square Garden Sports
7D
7.8%
1Y
55.0%

MSGS: Elevated P/E Assumptions Will Likely Sustain Premium And Downside Risk

The analyst price target for Madison Square Garden Sports has shifted from $220 to $295. Analysts attribute this change to updated assumptions on discount rates, revenue growth, margins, and a higher future P/E multiple.
IMAX
US$36.79
IMAX
7D
2.0%
1Y
40.0%

IMAX: Live Sports And Content Partnerships Will Support Future Upside

Analysts have maintained their $47.00 price target on IMAX, citing updated assumptions around discount rate, revenue growth, profit margin, and a higher future P/E multiple. They also highlight broader sector risks such as high development costs, dependence on single assets, and limited near term catalysts in comparable coverage.
TME
US$14.71
Tencent Music Entertainment Group
7D
-7.2%
1Y
13.3%

TME: Core Paying Users Will Support Future Recovery From Competitive Concerns

Analysts have made a small upward adjustment to their fair value estimate for Tencent Music Entertainment Group to $30.90 from $30.26, reflecting updated views on revenue growth, profit margins, and future P/E after recent research that kept a Neutral stance and highlighted steady user-paying fundamentals despite competitive noise from Bytedance's Soda Music. Analyst Commentary Recent commentary from bullish analysts has centered on how Tencent Music Entertainment Group's core business model and user-paying proposition remain intact, even as competition from Bytedance's Soda Music attracts attention.
RBLX
US$62.43
Roblox
7D
-1.2%
1Y
2.2%

RBLX: Engagement Trends And Content Cycles Will Drive Earnings And Regulatory Risk

Analysts have trimmed their fair value estimate for Roblox to $67, reflecting a series of lower Street price targets as they moderate assumptions on revenue growth, long term margins and future P/E, while still acknowledging supportive engagement trends and select rating upgrades. Analyst Commentary Recent research on Roblox has leaned cautious, with many Bearish analysts cutting price targets even as some firms highlight constructive engagement trends and select upgrades.
SPHR
US$111.30
Sphere Entertainment
7D
-3.8%
1Y
147.3%

SPHR: New Venue Plans And Residencies Will Support Future Earnings Durability

Analysts have raised their fair value estimate for Sphere Entertainment from $103.90 to $128.90, citing stronger Wizard of Oz performance, sponsorship and Exosphere monetization, as well as increasing confidence that additional Sphere venues and event bookings could support the business over time. Analyst Commentary Recent Street research on Sphere Entertainment reflects a mix of optimism on execution and monetization, alongside continued caution around concentration and durability risks.
DIS
US$104.41
Walt Disney
7D
-1.0%
1Y
-6.1%

DIS: IP Monetization And Upcoming Leadership Transition Will Drive Future Share Repricing

Analysts have made a modest upward adjustment to their Walt Disney fair value estimate, with the price target moving by about $0.12. They are factoring in slightly higher expected revenue growth, a marginally lower discount rate, and a somewhat higher future P/E assumption, despite a small trim to projected profit margins, supported by recent research that highlights solid early fiscal-year results and the company's ability to monetize its intellectual property across platforms.
ROKU
US$84.42
Roku
7D
-6.3%
1Y
-7.5%

ROKU: Neutral Platform Positioning Will Support Expanding Profitability Into 2026

The updated analyst price target for Roku has increased from $115.48 to $127.44. This change reflects recent Street research indicating stronger expected revenue growth, higher projected profit margins, and a lower assumed discount rate, supported by views on the company’s platform positioning and earnings outlook.
NFLX
US$76.02
Netflix
7D
-1.1%
1Y
-23.1%

NFLX: Shares Should Benefit As Warner Asset Bid Expands Content Scale

Analysts have trimmed their fair value estimate for Netflix to $111.43 from $134.44, reflecting lower future P/E expectations around $30.78 and slightly softer revenue growth assumptions, even as they factor in marginally higher profit margins and mixed reactions to potential Warner Bros. assets and recent advertising momentum.
SPOT
US$467.83
Spotify Technology
7D
2.1%
1Y
-22.2%

SPOT: 2026 U.S. Price Hike Will Offset Rising AI Subscription Risk

Analysts have trimmed their average price target on Spotify, reflected in a lower fair value estimate of $662.14 from $733.44, as they factor in higher perceived AI related risk to paid streaming, modestly softer growth assumptions, a richer discount rate, and a more conservative future P/E multiple, despite higher projected profit margins. Analyst Commentary Recent research on Spotify Technology points to a mixed but highly engaged analyst backdrop, with multiple firms revisiting their models around AI risk, pricing, and execution on product initiatives.
FWON.K
US$87.81
Formula One Group
7D
2.6%
1Y
-9.5%

FWON.K: Third Party Race Promotion And 2026 Deals Will Drive Upside

Analysts have nudged their fair value estimate for Formula One Group down from about $139 to $135. This reflects slightly higher discount rate assumptions, more cautious revenue growth expectations, and a lower future P/E multiple, partly offset by stronger projected profit margins and recent positive research that includes higher price targets and an upgrade to Outperform.
TTWO
US$195.59
Take-Two Interactive Software
7D
1.0%
1Y
-7.7%

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.
WMG
US$28.49
Warner Music Group
7D
-3.3%
1Y
-19.9%

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.