Sphere Entertainment Valuation
Is MQ2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
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 MQ2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: MQ2 (€37.4) is trading below our estimate of fair value (€157.32)
Significantly Below Fair Value: MQ2 is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for MQ2?
Key metric: As MQ2 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.
| What is MQ2's PS Ratio? | |
|---|---|
| PS Ratio | 1.3x |
| Sales | US$1.14b |
| Market Cap | US$1.47b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2.1x |
| Enterprise Value/EBITDA | 17.8x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does MQ2's PS Ratio compare to its peers?
| Company | Forward PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 1x | ||
BVB Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien | 0.7x | 0.8% | €358.7m |
EDL Edel SE KGaA | 0.4x | 3.6% | €97.4m |
EVD CTS Eventim KGaA | 3x | 6.3% | €8.0b |
HLG Highlight Communications | 0.1x | 4.9% | €68.7m |
MQ2 Sphere Entertainment | 1.3x | 2.7% | €1.5b |
Price-To-Sales vs Peers: MQ2 is expensive based on its Price-To-Sales Ratio (1.3x) compared to the peer average (1x).
Price to Sales Ratio vs Industry
How does MQ2's PS Ratio compare vs other companies in the European Entertainment Industry?
| 35 Companies | Price / Sales | Estimated Growth | Market Cap |
|---|---|---|---|
| 35 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Sales vs Industry: MQ2 is good value based on its Price-To-Sales Ratio (1.3x) compared to the European Entertainment industry average (1.4x).
Price to Sales Ratio vs Fair Ratio
What is MQ2'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.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 1.3x |
| Fair PS Ratio | 1.6x |
Price-To-Sales vs Fair Ratio: MQ2 is good value based on its Price-To-Sales Ratio (1.3x) compared to the estimated Fair Price-To-Sales Ratio (1.6x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | €37.40 | €48.06 +28.5% | 16.2% | €60.61 | €37.88 | n/a | 8 |
| Nov ’25 | €38.12 | €47.57 +24.8% | 17.4% | €62.80 | €36.94 | n/a | 8 |
| Oct ’25 | €38.72 | €44.41 +14.7% | 15.3% | €56.44 | €35.84 | n/a | 7 |
| Sep ’25 | €42.11 | €43.75 +3.9% | 8.4% | €51.42 | €40.59 | n/a | 6 |
| Aug ’25 | €40.89 | €38.55 -5.7% | 8.3% | €41.70 | €34.29 | n/a | 5 |
| Jul ’25 | €32.47 | €37.94 +16.9% | 6.3% | €40.18 | €34.57 | n/a | 5 |
| Jun ’25 | €32.98 | €37.13 +12.6% | 6.0% | €39.52 | €34.00 | n/a | 5 |
| May ’25 | €36.57 | €39.45 +7.9% | 8.2% | €44.56 | €34.35 | n/a | 6 |
| Apr ’25 | €44.82 | €39.45 -12.0% | 8.2% | €44.56 | €34.35 | n/a | 6 |
| Mar ’25 | €38.81 | €39.45 +1.7% | 8.2% | €44.56 | €34.35 | n/a | 6 |
| Feb ’25 | n/a | €32.94 0% | 13.5% | €40.48 | €27.60 | n/a | 5 |
| Jan ’25 | n/a | €32.06 0% | 10.2% | €36.64 | €27.48 | n/a | 5 |
| Dec ’24 | n/a | €29.65 0% | 13.2% | €34.93 | €23.90 | n/a | 4 |
| Nov ’24 | n/a | €28.45 0% | 17.0% | €35.44 | €22.38 | €38.12 | 4 |
| Oct ’24 | n/a | €28.45 0% | 17.0% | €35.44 | €22.38 | €38.72 | 4 |
| Sep ’24 | n/a | €27.54 0% | 19.1% | €35.18 | €22.22 | €42.11 | 4 |
| Aug ’24 | n/a | €23.61 0% | 1.7% | €24.31 | €23.37 | €40.89 | 4 |
| Jul ’24 | n/a | €23.61 0% | 1.7% | €24.31 | €23.37 | €32.47 | 4 |
| Jun ’24 | n/a | €23.54 0% | 1.9% | €24.16 | €23.24 | €32.98 | 3 |
| Apr ’24 | n/a | €67.24 0% | 4.6% | €71.52 | €64.18 | €44.82 | 3 |
| Mar ’24 | n/a | €65.42 0% | 9.8% | €73.16 | €55.34 | €38.81 | 4 |
| Feb ’24 | n/a | €56.95 0% | 17.3% | €73.09 | €46.51 | n/a | 5 |
| Jan ’24 | n/a | €56.95 0% | 17.3% | €73.09 | €46.51 | n/a | 5 |
| Dec ’23 | n/a | €56.66 0% | 16.9% | €74.37 | €47.32 | n/a | 6 |
| Nov ’23 | n/a | €82.83 0% | 15.6% | €100.60 | €63.38 | n/a | 6 |
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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