Live Nation Entertainment, Inc.
Live Nation Entertainment, Inc. Fundamental Analysis
Live Nation Entertainment, Inc. (LYV) shows weak financial fundamentals with a PE ratio of 42.42, profit margin of 3.66%, and ROE of 1.32%. The company generates $24.6B in annual revenue with weak year-over-year growth of 1.89%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LYV's fundamental strength across five key dimensions:
Efficiency Score
WeakLYV struggles to generate sufficient returns from assets.
Valuation Score
ModerateLYV shows balanced valuation metrics.
Growth Score
WeakLYV faces weak or negative growth trends.
Financial Health Score
ModerateLYV shows balanced financial health with some risks.
Profitability Score
ModerateLYV maintains healthy but balanced margins.
Key Financial Metrics
Is LYV Expensive or Cheap?
P/E Ratio
LYV trades at 42.42 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LYV's PEG of -1.03 indicates potential undervaluation.
Price to Book
The market values Live Nation Entertainment, Inc. at 0.14 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 23.15 times EBITDA. This signals the market has high growth expectations.
How Well Does LYV Make Money?
Net Profit Margin
For every $100 in sales, Live Nation Entertainment, Inc. keeps $3.66 as profit after all expenses.
Operating Margin
Core operations generate 4.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.32 in profit for every $100 of shareholder equity.
ROA
Live Nation Entertainment, Inc. generates $3.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Live Nation Entertainment, Inc. produces operating cash flow of $2.50B, showing steady but balanced cash generation.
Free Cash Flow
Live Nation Entertainment, Inc. produces free cash flow of $1.61B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $6.94 in free cash annually.
FCF Yield
LYV converts 4.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
42.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.010
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How LYV Stacks Against Its Sector Peers
| Metric | LYV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 42.42 | 21.66 | Worse (Expensive) |
| ROE | 1.32% | 1190.00% | Weak |
| Net Margin | 3.66% | -55754.00% (disorted) | Weak |
| Debt/Equity | 0.01 | 1.32 | Strong (Low Leverage) |
| Current Ratio | 1.00 | 1.59 | Weak Liquidity |
| ROA | 3.92% | -202359.00% (disorted) | Weak |
LYV outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Live Nation Entertainment, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
83.05%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
1070.76%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
235.25%
Industry Style: Growth, Technology, Streaming
High Growth