Lions Gate Entertainment Corp.

DB:LGNA Stock Report

Market Cap: €1.7b

Lions Gate Entertainment Valuation

Is LGNA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LGNA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LGNA (€7.72) is trading below our estimate of fair value (€23.18)

Significantly Below Fair Value: LGNA is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LGNA?

Key metric: As LGNA is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for LGNA. This is calculated by dividing LGNA's market cap by their current revenue.
What is LGNA's PS Ratio?
PS Ratio0.5x
SalesUS$3.88b
Market CapUS$1.77b

Price to Sales Ratio vs Peers

How does LGNA's PS Ratio compare to its peers?

The above table shows the PS ratio for LGNA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1x
BVB Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien
0.6x0.8%€356.5m
EVD CTS Eventim KGaA
3x6.3%€7.9b
EDL Edel SE KGaA
0.4x3.6%€97.9m
HLG Highlight Communications
0.1x4.9%€59.6m
LGNA Lions Gate Entertainment
0.5x5.1%€1.8b

Price-To-Sales vs Peers: LGNA is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (1x).

Price to Sales Ratio vs Industry

How does LGNA's PS Ratio compare vs other companies in the European Entertainment Industry?

35 CompaniesPrice / SalesEstimated GrowthMarket Cap
LGNA 0.5xIndustry Avg. 1.5xNo. of Companies35PS01.63.24.86.48+
35 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: LGNA is good value based on its Price-To-Sales Ratio (0.5x) compared to the European Entertainment industry average (1.5x).

Price to Sales Ratio vs Fair Ratio

What is LGNA's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LGNA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.5x
Fair PS Ratio1.7x

Price-To-Sales vs Fair Ratio: LGNA is good value based on its Price-To-Sales Ratio (0.5x) compared to the estimated Fair Price-To-Sales Ratio (1.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst LGNA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€7.72
€9.72
+25.9%
20.1%€12.13€7.00n/a6
Nov ’25€7.27
€10.94
+50.6%
19.8%€13.87€7.40n/a6
Oct ’25€6.97
€10.78
+54.8%
19.8%€13.67€7.29n/a6
Sep ’25€6.98
€10.78
+54.6%
19.8%€13.67€7.29n/a6
Aug ’25€8.55
€11.07
+29.5%
18.6%€13.84€7.38n/a6
Jul ’25€8.69
€10.99
+26.6%
17.6%€13.88€7.40n/a7
Jun ’25€7.34
€10.69
+45.6%
18.3%€13.83€8.30n/a7
May ’25€9.66
€10.73
+11.1%
16.1%€13.84€8.30n/a9
Apr ’25€9.09
€10.66
+17.3%
17.1%€13.73€8.24n/a8
Mar ’25€8.92
€10.69
+19.8%
18.3%€13.83€8.30n/a7
Feb ’25€9.72
€10.69
+10.0%
18.3%€13.83€8.30n/a7
Jan ’25€9.87
€10.20
+3.3%
21.0%€13.55€7.23n/a7
Dec ’24€8.00
€10.20
+27.5%
20.3%€13.75€7.33n/a8
Nov ’24€7.22
€10.04
+39.0%
20.5%€14.17€7.56€7.278
Oct ’24€7.97
€9.92
+24.4%
21.4%€14.07€7.50€6.977
Sep ’24€7.26
€9.78
+34.7%
22.8%€13.75€7.33€6.986
Aug ’24€6.97
€10.16
+45.8%
23.3%€14.04€6.55€8.557
Jul ’24€8.28
€10.16
+22.7%
23.3%€14.04€6.55€8.697
Jun ’24€9.32
€10.16
+9.0%
23.3%€14.04€6.55€7.347
May ’24€10.18
€9.35
-8.1%
26.4%€13.64€6.36€9.667
Apr ’24€9.57
€9.31
-2.7%
31.2%€13.97€4.66€9.097
Mar ’24€9.69
€9.31
-3.9%
31.2%€13.97€4.66€8.927
Feb ’24€7.36
€8.61
+16.9%
34.4%€13.80€4.60€9.727
Jan ’24€5.28
€10.26
+94.5%
29.5%€14.27€6.66€9.877
Dec ’23€7.18
€10.85
+51.1%
25.2%€14.51€7.74€8.007
Nov ’23€8.33
€14.43
+73.2%
15.3%€18.37€11.22€7.227

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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