Madison Square Garden Sports (MSGS): Valuation Check After BARINGTON’s New High-Conviction Investment

BARINGTON Companies Management’s new $3.4 million position in Madison Square Garden Sports (MSGS) is drawing fresh attention, as the stake now represents a meaningful slice of the fund’s overall portfolio.

See our latest analysis for Madison Square Garden Sports.

That confidence comes as MSGS shares change hands around $225.40, with a solid 90 day share price return of 9.23% contrasting with a slightly negative one year total shareholder return. This hints that momentum is quietly rebuilding after a softer spell.

If BARINGTON’s move has you thinking about what else could rerate next, it might be worth exploring fast growing stocks with high insider ownership as a way to spot other potential inflection stories.

With MSGS still trading below consensus targets but already showing strong multiyear returns and rapid profit growth, the key question is whether investors are overlooking further upside or if the market is already pricing in future gains.

Most Popular Narrative Narrative: 14.8% Undervalued

With Madison Square Garden Sports closing at $225.40 against a narrative fair value of $264.50, the story leans toward hidden upside, rooted in long run earnings power.

The upcoming ramp up in high value national media rights fees for the NBA (beginning in fiscal '26) will offset the recent step down in local media rights, positioning MSG Sports for an overall increase in recurring media revenue and supporting both revenue growth and higher net margins over the next several years.

Read the complete narrative.

Curious how modest top line growth, rising margins and a punchy future earnings multiple can still argue for upside from here? The narrative’s math may surprise you.

Result: Fair Value of $264.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, reduced local media fees and rising player costs could squeeze margins and challenge assumptions about MSGS’s earnings power and the current undervaluation narrative.

Find out about the key risks to this Madison Square Garden Sports narrative.

Another Angle on Valuation

While the narrative points to upside, the price to sales ratio tells a tougher story. MSGS trades at 5.3 times sales, far richer than both the US Entertainment average of 1.4 times and peers at 2.4 times, and well above a fair ratio of 1.1 times. That premium suggests meaningful downside if sentiment cools.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Madison Square Garden Sports Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom narrative in just minutes: Do it your way.

A great starting point for your Madison Square Garden Sports research is our analysis highlighting 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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