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U.S. Entertainment Industry Analysis

UpdatedJun 25, 2026
DataAggregated Company Financials
Companies154
  • 7D-2.2%
  • 3M-5.8%
  • 1Y-25.5%
  • YTD-14.5%

Over the last 7 days, the Entertainment industry has dropped 2.2%, driven by Netflix declining 7.2%. Overall the industry is down 25% in 12 months. Earnings are forecast to grow by 22% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 25 Jun 2026US$950.5bUS$292.8bUS$24.8b22.7x38.4x3.2x
Sat, 23 May 2026US$1.0tUS$293.2bUS$24.8b31x41.4x3.5x
Mon, 20 Apr 2026US$1.1tUS$289.9bUS$25.4b34.1x42.6x3.7x
Wed, 18 Mar 2026US$1.1tUS$287.4bUS$22.9b36.3x46.2x3.7x
Fri, 13 Feb 2026US$1.0tUS$286.3bUS$22.5b29.3x45x3.5x
Sun, 11 Jan 2026US$1.1tUS$281.3bUS$21.2b19.4x53.2x4x
Tue, 09 Dec 2025US$1.2tUS$281.1bUS$21.3b22.5x54.6x4.1x
Thu, 06 Nov 2025US$1.2tUS$276.8bUS$22.5b24.7x53.6x4.4x
Sat, 04 Oct 2025US$1.3tUS$274.9bUS$21.8b30.9x58.3x4.6x
Mon, 01 Sep 2025US$1.4tUS$293.9bUS$23.0b39.3x59.6x4.7x
Wed, 30 Jul 2025US$1.3tUS$290.0bUS$8.3b26x160.1x4.6x
Fri, 27 Jun 2025US$1.4tUS$288.8bUS$7.5b24.5x180.8x4.7x
Sun, 25 May 2025US$1.2tUS$288.3bUS$7.3b20.9x170.3x4.3x
Tue, 22 Apr 2025US$1.0tUS$284.6bUS$3.2b19.3x326.8x3.6x
Thu, 20 Mar 2025US$1.1tUS$289.6bUS$2.4b25.3x434x3.7x
Sat, 15 Feb 2025US$1.2tUS$288.3bUS$2.3b26.2x514.7x4.1x
Mon, 13 Jan 2025US$996.9bUS$284.2b-US$4,302,223.1119x-231718x3.5x
Wed, 11 Dec 2024US$1.1tUS$284.8bUS$74.3m16.5x14329.5x3.7x
Fri, 08 Nov 2024US$923.1bUS$282.3b-US$1,221,620,229.7423.3x-755.6x3.3x
Sun, 06 Oct 2024US$948.8bUS$299.1bUS$1.1b22.9x896.2x3.2x
Tue, 03 Sep 2024US$889.6bUS$299.1bUS$1.1b18.9x822.7x3x
Thu, 01 Aug 2024US$842.2bUS$293.0bUS$8.7b22x96.3x2.9x
Sat, 29 Jun 2024US$874.0bUS$291.1bUS$7.8b14.3x112.4x3x
Mon, 27 May 2024US$851.0bUS$291.4bUS$7.8b16.9x109.2x2.9x
Wed, 24 Apr 2024US$826.9bUS$288.8bUS$10.3b19.4x80.1x2.9x
Fri, 22 Mar 2024US$855.2bUS$288.1bUS$9.3b16.4x92.3x3x
Sun, 18 Feb 2024US$817.1bUS$284.7bUS$8.0b18.1x101.9x2.9x
Tue, 16 Jan 2024US$830.5bUS$296.9bUS$7.0b19.1x118x2.8x
Thu, 14 Dec 2023US$832.2bUS$296.7bUS$7.1b18.1x118x2.8x
Sat, 11 Nov 2023US$789.5bUS$289.6bUS$5.7b20.5x138.3x2.7x
Mon, 09 Oct 2023US$739.5bUS$287.4bUS$1.2b19.7x618.3x2.6x
Wed, 06 Sep 2023US$752.1bUS$286.4bUS$860.1m20.6x874.4x2.6x
Fri, 04 Aug 2023US$778.6bUS$283.1bUS$217.2m27.7x3585.4x2.8x
Sun, 02 Jul 2023US$776.7bUS$279.5b-US$2,342,517,785.0021.3x-331.6x2.8x
Price to Earnings Ratio

-331.6x


Total Market Cap: US$776.7bTotal Earnings: -US$2,342,517,785.00Total Revenue: US$279.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Entertainment Industry Price to Earnings3Y Average -68122.6x202420252026
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 38.4x which is higher than its 3-year average PE of -68kx.
  • The industry is trading close to its 3-year average PS ratio of 3.5x.
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 remained mostly flat. This means that the industry has become more efficient since profits are increasing while sales have been flat.

Industry Trends

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

US Market-2.47%
Telecom-7.37%
Entertainment-2.22%
Interactive Home Entertainment-0.25%
Movies and Entertainment-2.53%
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 76.8x.
    • Analysts are expecting annual earnings growth of 21.0%, which is higher than its past year's earnings growth of 16.8% per year.
Forecasted Growth
  • Analysts are most optimistic on the Interactive Home Entertainment industry, expecting annual earnings growth of 29% over the next 5 years.
  • This is better than its past earnings decline of 3.1% per year.
  • In contrast, the Movies and Entertainment industry is expected to see its earnings grow by 21% 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$27.203.7%
+US$2.4b		150.2%PS1.8x
TKO TKO Group HoldingsUS$203.514.6%
+US$673.2m		16.3%PE67.4x
DIS Walt DisneyUS$101.120.3%
+US$451.5m		-15.3%PE15.6x
EA Electronic ArtsUS$204.520.7%
+US$376.1m		29.6%PE57.8x
MSGE Madison Square Garden EntertainmentUS$76.514.8%
+US$166.0m		92.0%PE73.9x

Latest News

SPOT
US$455.01
Spotify Technology
7D
-0.1%
1Y
-38.2%
WBD
US$27.20
Warner Bros. Discovery
7D
3.7%
1Y
150.2%
Seeking Alpha • 3h

WBD: Thanks To Oracle, Warner Just Might Be The Newest AI Stock

Summary Warner Bros. Discovery remains in merger limbo, with EU approval likely but significant U.S. state opposition mounting. WBD's movie performance is lagging, reflecting the front-loading of its top films into 2025 at the expense of 2026. Recent declines in Oracle stock may threaten merger financing, with Ellison’s liquidity tied to ORCL’s value. The state challenge has a real chance of success, although my base case remains merger approval. I maintain a Hold (avoid) rating on WBD, as merger probability and operational headwinds balance out potential upside. Read the full article on Seeking Alpha
TME
US$8.18
Tencent Music Entertainment Group
7D
-5.9%
1Y
-56.3%
Seeking Alpha • 6h

Tencent Music: Recent Strategic Moves Are Reshaping The Investment Case

Summary Tencent Music (TME) is rated Buy, with upside driven by premium memberships, concerts, and deeper Tencent ecosystem integration. TME’s SVIP membership and concert strategy create a high-value flywheel, supporting margin expansion and resilience against Bytedance competition. The Ximalaya acquisition enhances TME’s audio ecosystem and premium value proposition, though immediate competitive advantages versus Bytedance may be limited. Valuation analysis suggests TME is undervalued, with potential worth of $24B versus the current $14B market cap, even under conservative scenarios. Read the full article on Seeking Alpha
TKO
US$203.51
TKO Group Holdings
7D
4.6%
1Y
16.3%
Seeking Alpha • 17h

TKO Group Holdings: Good Monetization Potential And Live Event Demand Growth Path

Summary TKO Group Holdings remains a buy as the Paramount deal has expanded UFC's reach and validated its content value. UFC's transition to Paramount+/CBS has driven record viewership, broadening the top-of-funnel audience and enhancing monetization potential across ads, sponsorships, and live events. Live event demand for both UFC and WWE remains robust, with premium experiences and FIPs providing durable, diversified growth channels beyond media rights. TKO trades at 18x forward EBITDA, justified by improved growth visibility and higher margins, but future upside depends on successful monetization of expanded reach. Read the full article on Seeking Alpha
DIS
US$101.12
Walt Disney
7D
0.3%
1Y
-15.3%
TTWO
US$235.77
Take-Two Interactive Software
7D
-1.5%
1Y
-1.5%
Seeking Alpha • Jun 24

Take-Two Interactive: Valuation Doesn't Make Sense Amid Possible Disruption

Summary Take-Two Interactive faces a downgrade to “Sell” due to its elevated valuation, despite anticipation for Grand Theft Auto VI. TTWO’s stock has rebounded sharply from prior lows, but current multiples appear stretched relative to FY27 guidance. The investment thesis hinges on future releases, particularly GTA VI, with pre-orders starting June 25 and launch set for November 19. AI-driven disruption and only medium-term chip constraints add further uncertainty to TTWO’s long-term fundamental outlook. Read the full article on Seeking Alpha
PLTK
US$3.85
Playtika Holding
7D
10.3%
1Y
-20.1%
Narrative Update • Jun 24

PLTK: Future Cash Flow Will Depend On Licensed Events Proving Sustainable

Analysts have nudged their average price target on Playtika Holding stock up by $0.50 to $3.50, citing the early success of Disney Solitaire and an improved FY26 outlook, while also flagging the need to see how revenue holds up as user acquisition spending is reduced. What’s in the News for Playtika Holding Playtika is extending the life of mature mobile titles by adding licensed intellectual property and themed live events, including a collaboration between Bingo Blitz and the Where’s Waldo?
MSGS
US$366.05
Madison Square Garden Sports
7D
1.2%
1Y
77.9%
ROKU
US$135.93
Roku
7D
-1.5%
1Y
57.1%
Narrative Update • Jun 23

ROKU: Fox Deal And Personalization Upgrades Will Support Future Advertising Upside

Roku's updated analyst fair value estimate has shifted from $146.04 to $151.68. This reflects analysts' adjustments to discount rate, revenue growth, profit margin, and future P/E assumptions in light of Fox's planned acquisition and the recent wave of price target resets around the $155 to $160 range.
SPHR
US$155.12
Sphere Entertainment
7D
1.8%
1Y
292.6%
Narrative Update • Jun 23

SPHR: Content Expansion And New Venues Will Support Earnings Durability

Sphere Entertainment's analyst price target has been raised from $161.00 to about $170.67. Analysts cited greater confidence in the scalability of the Sphere model, continued momentum from The Wizard of Oz and Exosphere advertising, and the planned addition of Rocky Horror Picture Show to the original content slate.
AMC
US$2.00
AMC Entertainment Holdings
7D
-24.8%
1Y
-32.9%
MANU
US$21.11
Manchester United
7D
-3.2%
1Y
14.7%
NFLX
US$71.84
Netflix
7D
-7.2%
1Y
-45.0%
Narrative Update • Jun 23

NFLX: Advertising Scale And Content Investments Will Support Long Term Upside

Analysts have trimmed their average Netflix fair value estimate slightly to about $114.15 from $114.56. This reflects more cautious assumptions around future price increases and user engagement, even as ad tier momentum and longer term advertising plans remain key parts of the story.
WMG
US$26.93
Warner Music Group
7D
-5.6%
1Y
2.8%
Narrative Update • Jun 23

WMG: AI Rights Management And Content Partnerships Will Support Long Term Economics

Analysts have raised their average price target on Warner Music Group by $5, reflecting recent research that incorporates updated views on the company following a mix of upward and downward target revisions in recent months. Analyst Commentary Recent research on Warner Music Group highlights a split between analysts who see the latest developments as supportive of a higher valuation and those who are more cautious and have reduced their targets.
MSGE
US$76.51
Madison Square Garden Entertainment
7D
4.8%
1Y
92.0%
Narrative Update • Jun 22

MSGE: Future Returns Will Depend On Concert Demand And Penn Station Progress

The analyst price target for Madison Square Garden Entertainment has been nudged higher to $77.13 from $76.38, reflecting analysts' updated views on the Penn Station redevelopment progress, the concert event profile, and comparable P/E assumptions across recent research. Analyst Commentary Analysts covering Madison Square Garden Entertainment are focusing on two main areas: the Penn Station redevelopment process and the concert event profile.
EA
US$204.52
Electronic Arts
7D
0.7%
1Y
29.6%