Using the industry peer median P/E multiple (trailing + forward), Live Nation Entertainment, Inc. (LYV) has a fair value of $22.65 based on 3 comparable companies in the Entertainment industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Live Nation Entertainment, Inc.LYV | 35,010 | — | 96.9x |
| Charter Communications, Inc.CHTR | 27,684 | 6.0x | 5.0x |
| Fox CorporationFOXA | 26,218 | 12.0x | 12.6x |
| TKO Group Holdings, Inc.TKO | 15,185 | 85.1x | 38.3x |
| Industry Median | 12.0x | 12.6x | |
| (*) Profit after tax | 496 | 361 | |
| Equity Value | 5,945 | 4,558 | |
| (/) Outstanding shares | 232 | 232 | |
| Fair Price | $26 | $20 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.