Warner Music Group Corp. (NASDAQ:WMG) Shares Could Be 23% Below Their Intrinsic Value Estimate
May 08
U.S. Entertainment Industry Analysis
UpdatedMay 09, 2024
DataAggregated Company Financials
Companies145
- 7D3.3%
- 3M3.6%
- 1Y23.4%
- YTD17.5%
In the last week, the Entertainment industry is up 3.3%, with Netflix up 10%. This takes the industry's 12 month performance to a gain of 23%. Earnings are forecast to grow by 27% annually.
Industry Valuation and Performance
Has the U.S. Entertainment Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 09 May 2024 | US$836.2b | US$290.6b | US$9.8b | 20x | 85.3x | 2.9x |
| Sat, 06 Apr 2024 | US$848.3b | US$288.0b | US$9.3b | 19.2x | 91.4x | 2.9x |
| Mon, 04 Mar 2024 | US$839.0b | US$286.7b | US$9.9b | 15.3x | 84.5x | 2.9x |
| Wed, 31 Jan 2024 | US$890.5b | US$296.9b | US$8.0b | 20x | 111.8x | 3x |
| Fri, 29 Dec 2023 | US$835.1b | US$297.2b | US$7.1b | 19.7x | 118.3x | 2.8x |
| Sun, 26 Nov 2023 | US$846.1b | US$297.0b | US$6.9b | 20.9x | 123.1x | 2.8x |
| Tue, 24 Oct 2023 | US$741.4b | US$288.0b | US$1.5b | 20.9x | 509.2x | 2.6x |
| Thu, 21 Sep 2023 | US$736.5b | US$286.4b | US$868.6m | 20.7x | 848x | 2.6x |
| Sat, 19 Aug 2023 | US$738.6b | US$287.7b | -US$13,837,973.00 | 26.2x | -53371.4x | 2.6x |
| Mon, 17 Jul 2023 | US$797.3b | US$280.4b | -US$2,323,755,633.00 | 21.5x | -343.1x | 2.8x |
| Wed, 14 Jun 2023 | US$784.0b | US$279.7b | -US$2,200,888,954.00 | 19.6x | -356.2x | 2.8x |
| Fri, 12 May 2023 | US$731.2b | US$280.7b | -US$2,797,349,377.00 | 20.9x | -261.4x | 2.6x |
| Sun, 09 Apr 2023 | US$758.3b | US$266.9b | -US$1,082,181,764.00 | 22.4x | -700.7x | 2.8x |
| Tue, 07 Mar 2023 | US$725.6b | US$266.0b | -US$2,760,928,914.00 | 28.4x | -262.8x | 2.7x |
| Thu, 02 Feb 2023 | US$764.0b | US$254.0b | US$614.4m | 28.6x | 1243.4x | 3x |
| Sat, 31 Dec 2022 | US$624.8b | US$252.7b | US$987.2m | 25.3x | 632.9x | 2.5x |
| Mon, 28 Nov 2022 | US$638.2b | US$251.1b | US$916.7m | 26.2x | 696.2x | 2.5x |
| Wed, 26 Oct 2022 | US$658.1b | US$236.7b | US$5.3b | 20.3x | 123.4x | 2.8x |
| Fri, 23 Sep 2022 | US$638.1b | US$236.7b | US$5.4b | 21.7x | 118.9x | 2.7x |
| Sun, 21 Aug 2022 | US$717.3b | US$237.3b | US$5.2b | 22.4x | 139x | 3x |
| Tue, 19 Jul 2022 | US$618.8b | US$213.9b | US$9.5b | 23.6x | 64.9x | 2.9x |
| Thu, 16 Jun 2022 | US$639.3b | US$217.6b | US$9.4b | 25.5x | 68.3x | 2.9x |
| Sat, 14 May 2022 | US$657.5b | US$215.6b | US$9.8b | 23.1x | 67.3x | 3x |
| Mon, 11 Apr 2022 | US$792.4b | US$199.0b | US$9.0b | 23.2x | 88.2x | 4x |
| Wed, 09 Mar 2022 | US$769.6b | US$200.3b | US$9.2b | 23.5x | 83.6x | 3.8x |
| Fri, 04 Feb 2022 | US$882.1b | US$190.4b | US$7.6b | 31.7x | 116.5x | 4.6x |
| Sun, 02 Jan 2022 | US$1.1t | US$188.6b | US$7.6b | 34.5x | 144x | 5.8x |
| Tue, 30 Nov 2021 | US$1.2t | US$188.4b | US$7.5b | 32.9x | 155.5x | 6.2x |
| Thu, 28 Oct 2021 | US$1.2t | US$178.5b | US$6.0b | 32.5x | 208.8x | 7x |
| Sat, 25 Sep 2021 | US$1.2t | US$177.2b | US$5.3b | 27.4x | 225.6x | 6.7x |
| Mon, 23 Aug 2021 | US$1.2t | US$176.4b | US$6.0b | 29.9x | 192.9x | 6.6x |
| Sat, 10 Jul 2021 | US$1.2t | US$171.0b | US$386.0m | 35.5x | 3195.9x | 7.2x |
Price to Earnings Ratio
-1053.2x
Current Industry PE
- Investors are optimistic on the American Entertainment industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 85.3x which is higher than its 3-year average PE of -57.8x.
- The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 2.9x.
Past Earnings Growth
- Total earnings for the Entertainment industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 21% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.S. Telecom industry?
| US Market | 3.30% | |
| Telecom | 3.78% | |
| Entertainment | 3.33% | |
| Movies and Entertainment | 3.65% | |
| Interactive Home Entertainment | 2.07% | |
Industry PE
- Investors are most optimistic about the Movies and Entertainment industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 27.1%, which is higher than its past year's earnings growth of 6.7% per year.
- Investors are most pessimistic about the Interactive Home Entertainment industry, which is trading below its 3-year average of 209x.
Forecasted Growth
- Analysts are most optimistic on the Movies and Entertainment industry, expecting annual earnings growth of 27% over the next 5 years.
- This is better than its past earnings growth rate of 6.7% per year.
- In contrast, the Interactive Home Entertainment industry is expected to see its earnings grow by 27% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| NFLX Netflix | US$609.47 | 10.5% +US$24.9b | 81.7% | PE40.8x | |
| SPOT Spotify Technology | US$298.65 | 5.0% +US$2.8b | 102.1% | PS4x | |
| SE Sea | US$66.75 | 6.4% +US$2.3b | -22.0% | PE254.4x | |
| NTES NetEase | US$96.63 | 2.8% +US$1.7b | 8.9% | PE15.3x | |
| RBLX Roblox | US$39.03 | 6.7% +US$1.6b | 0.4% | PS8.9x |
