Live Nation Entertainment, Inc. Fundamental Analysis
Live Nation Entertainment, Inc. (LYV) shows moderate financial fundamentals with a PE ratio of 442.58, profit margin of 0.33%, and ROE of 33.04%. The company generates $25.6B in annual revenue with moderate year-over-year growth of 8.83%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 820.7/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
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
ModerateLYV shows steady but slowing expansion.
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 442.58 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LYV's PEG of -7.82 indicates potential undervaluation.
Price to Book
The market values Live Nation Entertainment, Inc. at -265.62 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.32 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 $0.33 as profit after all expenses.
Operating Margin
Core operations generate 5.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $33.04 in profit for every $100 of shareholder equity.
ROA
Live Nation Entertainment, Inc. generates $0.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Live Nation Entertainment, Inc. generates limited operating cash flow of $2.42B, signaling weaker underlying cash strength.
Free Cash Flow
Live Nation Entertainment, Inc. produces free cash flow of $1.24B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.31 in free cash annually.
FCF Yield
LYV converts 3.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
442.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-7.82
vs 25 benchmark
P/B Ratio
Price to book value ratio
-265.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-75.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.33
vs 25 benchmark
ROA
Return on assets percentage
0.003
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How LYV Stacks Against Its Sector Peers
| Metric | LYV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 442.58 | 24.20 | Worse (Expensive) |
| ROE | 33.04% | 959.00% | Weak |
| Net Margin | 0.33% | -68674.00% (disorted) | Weak |
| Debt/Equity | -75.92 | 3.02 | Strong (Low Leverage) |
| Current Ratio | 0.88 | 1.71 | Weak Liquidity |
| ROA | 0.32% | -2558.00% (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
1139.74%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
126.33%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
217.92%
Industry Style: Growth, Technology, Streaming
High Growth