Lions Gate Entertainment Corp.

NYSE:LGF.B Stock Report

Market Cap: US$1.8b

Lions Gate Entertainment Valuation

Is LGF.B 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 LGF.B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LGF.B ($7.43) is trading below our estimate of fair value ($19.87)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LGF.B?

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

The above table shows the Price to Sales ratio for LGF.B. This is calculated by dividing LGF.B's market cap by their current revenue.
What is LGF.B's PS Ratio?
PS Ratio0.5x
SalesUS$3.88b
Market CapUS$1.75b

Price to Sales Ratio vs Peers

How does LGF.B's PS Ratio compare to its peers?

The above table shows the PS ratio for LGF.B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.5x
IQ iQIYI
0.5x2.4%US$1.9b
LION Lionsgate Studios
0.7x5.0%US$2.0b
SPHR Sphere Entertainment
1.3x2.7%US$1.5b
BATR.K Atlanta Braves Holdings
3.7x3.8%US$2.5b
LGF.B Lions Gate Entertainment
0.5x5.0%US$1.8b

Price-To-Sales vs Peers: LGF.B is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (1.5x).

Price to Sales Ratio vs Industry

How does LGF.B's PS Ratio compare vs other companies in the US Entertainment Industry?

23 CompaniesPrice / SalesEstimated GrowthMarket Cap
IQ iQIYI
0.5x2.4%US$1.91b
AMC AMC Entertainment Holdings
0.4x9.0%US$1.80b
RDBX Redbox Entertainment
0.08x34.4%US$76.65m
RDI Reading International
0.2x11.2%US$39.73m
LGF.B 0.5xIndustry Avg. 1.4xNo. of Companies23PS0246810+
23 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: LGF.B is good value based on its Price-To-Sales Ratio (0.5x) compared to the US Entertainment industry average (1.4x).

Price to Sales Ratio vs Fair Ratio

What is LGF.B'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.

LGF.B PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.5x
Fair PS Ratio1.1x

Price-To-Sales vs Fair Ratio: LGF.B is good value based on its Price-To-Sales Ratio (0.5x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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