Sphere Entertainment Co.

DB:MQ2 Stock Report

Market Cap: €2.5b

Sphere Entertainment Valuation

Is MQ2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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.

€82.93
Fair Value
13.8% undervalued intrinsic discount
10
Number of Analysts

Below Fair Value: MQ2 (€71.5) is trading below our estimate of fair value (€82.93)

Significantly Below Fair Value: MQ2 is trading below fair value, but not by a significant amount.

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.

The above table shows the Price to Sales ratio for MQ2. This is calculated by dividing MQ2's market cap by their current revenue.
What is MQ2's PS Ratio?
PS Ratio2.7x
SalesUS$1.08b
Market CapUS$2.93b

Price to Sales Ratio vs Peers

How does MQ2's PS Ratio compare to its peers?

The above table shows the PS ratio for MQ2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.8x
EVD CTS Eventim KGaA
2.7x6.09%€8.0b
WBAH Wild Bunch
11.8xn/a€818.8m
BVB Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien
0.6x-2.43%€366.5m
LOU DEAG Deutsche Entertainment
0.2xn/a€77.3m
MQ2 Sphere Entertainment
2.7x6.27%€2.9b

Price-To-Sales vs Peers: MQ2 is good value based on its Price-To-Sales Ratio (2.7x) compared to the peer average (3.8x).

Price to Sales Ratio vs Industry

How does MQ2's PS Ratio compare vs other companies in the DE Entertainment Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
EDL Edel SE KGaA
0.4x2.72%US$104.62m
LOU DEAG Deutsche Entertainment
0.2xn/aUS$89.62m
HLG Highlight Communications
0.1xn/aUS$84.90m
SPM Splendid Medien
0.3xn/aUS$13.21m
MQ2 2.7xIndustry Avg. 1.9xNo. of Companies6PS02.44.87.29.612+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: MQ2 is expensive based on its Price-To-Sales Ratio (2.7x) compared to the European Entertainment industry average (1.9x).

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.

MQ2 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.7x
Fair PS Ratio2.1x

Price-To-Sales vs Fair Ratio: MQ2 is expensive based on its Price-To-Sales Ratio (2.7x) compared to the estimated Fair Price-To-Sales Ratio (2.1x).

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 MQ2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€71.50
€65.54
-8.33%
20.65%€80.08€39.17n/a10
Nov ’26€59.00
€55.74
-5.52%
25.69%€73.01€30.06n/a10
Oct ’26€52.00
€48.57
-6.59%
23.64%€64.09€29.52n/a10
Sep ’26€38.40
€46.28
+20.52%
23.97%€64.40€30.05n/a10
Aug ’26€35.80
€45.70
+27.66%
26.11%€65.69€30.65n/a11
Jul ’26€34.80
€44.21
+27.04%
26.99%€64.79€30.23n/a11
Jun ’26€32.40
€42.74
+31.90%
25.48%€65.34€30.91n/a10
May ’26€24.00
€40.69
+69.54%
26.73%€60.64€28.12n/a10
Apr ’26€29.52
€45.28
+53.39%
20.82%€63.91€32.42n/a9
Mar ’26€40.14
€49.05
+22.22%
19.69%€66.53€34.71n/a8
Feb ’26€43.75
€48.50
+10.88%
19.69%€65.78€34.32n/a8
Jan ’26€36.07
€47.59
+31.95%
17.85%€60.61€34.09n/a8
Dec ’25€37.40
€47.59
+27.25%
17.85%€60.61€34.09n/a8
Nov ’25€38.12
€47.70
+25.14%
17.39%€62.99€37.05€59.008
Oct ’25€38.72
€44.41
+14.70%
15.32%€56.44€35.84€52.007
Sep ’25€42.11
€43.75
+3.90%
8.40%€51.42€40.59€38.406
Aug ’25€40.89
€38.55
-5.72%
8.27%€41.70€34.29€35.805
Jul ’25€32.47
€37.94
+16.85%
6.35%€40.18€34.57€34.805
Jun ’25€32.98
€37.13
+12.58%
5.98%€39.52€34.00€32.405
May ’25€36.57
€39.45
+7.90%
8.24%€44.56€34.35€24.006
Apr ’25€44.82
€39.45
-11.97%
8.24%€44.56€34.35€29.526
Mar ’25€38.81
€39.45
+1.66%
8.24%€44.56€34.35€40.146
Feb ’25n/a
€32.94
0%
13.50%€40.48€27.60€43.755
Jan ’25n/a
€32.06
0%
10.22%€36.64€27.48€36.075
Dec ’24n/a
€29.65
0%
13.22%€34.93€23.90€37.404
Nov ’24n/a
€28.45
0%
16.96%€35.44€22.38€38.124
€64.96
Fair Value
10.1% overvalued intrinsic discount
10
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/11/27 18:51
End of Day Share Price 2025/11/27 00:00
Earnings2025/09/30
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Sphere Entertainment Co. is covered by 18 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Michael HickeyBenchmark Company
David BeckelBerenberg
Peter HendersonBofA Global Research