Live Nation Entertainment (NYSE:LYV) - Share price, News & Analysis

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

LYV ($83.06) is trading below our estimate of [[fair value]] ($146.95)

LYV fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	5/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

LYV Stock Overview

Live Nation Entertainment, Inc. operates as a live entertainment company.

Rewards

Trading at 43.5% below our estimate of its fair value

Earnings are forecast to grow 41.03% per year

Risk Analysis

Shareholders have been diluted in the past year

Live Nation Entertainment Competitors

AMC Entertainment Holdings

NYSE:AMC

US$7.0b

Formula One Group

NasdaqGS:FWON.K

US$14.3b

Spotify Technology

NYSE:SPOT

US$18.8b

Warner Music Group

NasdaqGS:WMG

US$12.6b

Price History & Performance

Summary of all time highs, changes and price drops for Live Nation Entertainment
Historical stock prices
Current Share Price	US$83.06
52 Week High	US$127.75
52 Week Low	US$74.23
Beta	1.29
1 Month Change	-12.12%
3 Month Change	-27.38%
1 Year Change	-4.85%
3 Year Change	19.24%
5 Year Change	142.65%
Change since IPO	651.67%

Recent News & Updates

Jun 13

An Intrinsic Calculation For Live Nation Entertainment, Inc. (NYSE:LYV) Suggests It's 35% Undervalued

Does the June share price for Live Nation Entertainment, Inc. ( NYSE:LYV ) reflect what it's really worth? Today, we...

Jun 01

Live Nation: New Artists Expected As Well As Price Increases

Live Nation Entertainment presents itself as the largest live entertainment business in the world with over 310 million fans. Live Nation Entertainment also delivered confirmed show bookings growing at a double digit in 2022, so things seem quite sweet for management. In my view, if management keeps reporting positive net income from 2024, we could expect the stock price to trend higher.

May 20

Live Nation: LYV Richly Valued With Mixed Technicals

Live Nation (LYV) is historically pricey on a price-to-sales basis and has negative earnings with no dividend. A key upcoming industry conference could spark volatility. The chart shows big bearish overhead supply but some downside support.

Shareholder Returns

	LYV	US Entertainment	US Market
7D	-4.3%	-2.7%	-0.6%
1Y	-4.8%	-53.6%	-21.7%

Return vs Industry: LYV exceeded the US Entertainment industry which returned -53.6% over the past year.

Return vs Market: LYV exceeded the US Market which returned -21.7% over the past year.

Price Volatility

Is LYV's price volatile compared to industry and market?
LYV volatility
LYV Average Weekly Movement	7.2%
Entertainment Industry Average Movement	11.8%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.2%

Stable Share Price: LYV is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: LYV's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2005	10,200	Michael Rapino	https://www.livenationentertainment.com

Live Nation Entertainment, Inc. operates as a live entertainment company. It operates through Concerts, Ticketing, and Sponsorship & Advertising segments. The Concerts segment promotes live music events in its owned or operated venues, and in rented third-party venues; operates and manages music venues; produces music festivals; creates associated content; and offers management and other services to artists.

Live Nation Entertainment Fundamentals Summary

How do Live Nation Entertainment's earnings and revenue compare to its market cap?
LYV fundamental statistics
Market Cap	US$18.89b
Earnings (TTM)	-US$448.46m
Revenue (TTM)	US$7.78b

2.4x

P/S Ratio

-42.1x

P/E Ratio

Is LYV overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LYV income statement (TTM)
Revenue	US$7.78b
Cost of Revenue	US$5.29b
Gross Profit	US$2.49b
Other Expenses	US$2.94b
Earnings	-US$448.46m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-1.97
Gross Margin	31.97%
Net Profit Margin	-5.76%
Debt/Equity Ratio	1,320.5%

How did LYV perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for LYV. This is calculated by dividing LYV's market cap by their current preferred multiple.
What is LYV's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$18.89b

LYV key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.8x
Enterprise Value/EBITDA	68.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

LYV PS Ratio vs Peers

The above table shows the PS ratio for LYV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	3.1x
AMC AMC Entertainment Holdings	2.2x	10.3%	US$7.0b
FWON.K Formula One Group	6.2x	10.4%	US$14.3b
SPOT Spotify Technology	1.8x	13.6%	US$18.8b
WMG Warner Music Group	2.2x	9.6%	US$12.6b
LYV Live Nation Entertainment	2.4x	9.8%	US$18.9b

Forward PS

Price-To-Sales vs Peers: LYV is good value based on its Price-To-Sales Ratio (2.4x) compared to the peer average (3.1x).

Price to Earnings Ratio vs Industry

How does LYV's PE Ratio compare vs other companies in the US Entertainment Industry?

Price-To-Sales vs Industry: LYV is expensive based on its Price-To-Sales Ratio (2.4x) compared to the US Entertainment industry average (1.6x)

Price to Sales Ratio vs Fair Ratio

What is LYV'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.

LYV PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.4x
Fair PS Ratio	2.4x

Price-To-Sales vs Fair Ratio: LYV is good value based on its Price-To-Sales Ratio (2.4x) compared to the estimated Fair Price-To-Sales Ratio (2.4x).

Share Price vs Fair Value

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

Below Fair Value: LYV ($83.06) is trading below our estimate of fair value ($146.95)

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

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LYV's PEG Ratio to determine if it is good value.

Discover undervalued companies

Future Growth

How is Live Nation Entertainment forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

41.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LYV is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: LYV is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LYV is expected to become profitable in the next 3 years.

Revenue vs Market: LYV's revenue (9.8% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: LYV's revenue (9.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: LYV's Return on Equity is forecast to be very high in 3 years time (206.4%).

Discover growth companies

Past Performance

How has Live Nation Entertainment performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-58.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LYV is currently unprofitable.

Growing Profit Margin: LYV is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: LYV is unprofitable, and losses have increased over the past 5 years at a rate of 58.8% per year.

Accelerating Growth: Unable to compare LYV's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LYV is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (3.7%).

Return on Equity

High ROE: LYV has a negative Return on Equity (-76.83%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Live Nation Entertainment's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: LYV's short term assets ($8.1B) do not cover its short term liabilities ($8.3B).

Long Term Liabilities: LYV's short term assets ($8.1B) exceed its long term liabilities ($7.3B).

Debt to Equity History and Analysis

Debt Level: LYV has more cash than its total debt.

Reducing Debt: LYV's debt to equity ratio has increased from 138% to 1320.5% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable LYV has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: LYV is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 0.1% per year.

Discover healthy companies

Dividend

What is Live Nation Entertainment current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate LYV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LYV's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LYV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LYV's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as LYV has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure

CEO

Michael Rapino (56 yo)

16.83yrs

Tenure

US$13,842,464

Compensation

Mr. Michael Rapino has been the Chief Executive Officer and President of Live Nation Entertainment, Inc. since August 2005. Mr. Rapino serves as Chief Executive Officer and President at Live Nation Merchan...

CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD13.84M) is about average for companies of similar size in the US market ($USD13.59M).

Compensation vs Earnings: Michael's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: LYV's management team is seasoned and experienced (5.6 years average tenure).

Board Members

Experienced Board: LYV's board of directors are considered experienced (7.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4%.

Data	Last Updated (UTC time)
Company Analysis	2022/07/01 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31