LYV

Live Nation Entertainment Inc

Consumer


Presented:08/09/2024
Price:$92.18
Cap:$21.23B
Current Price:$115.35
Cap:$26.57B

Presented

Date08/09/2024
Price$92.18
Market Cap$21.23B
Ent Value$26.19B
P/E Ratio88.13x
Book ValueN/A
Div Yield0%
Shares O/S230.32M
Ave Daily Vol2,084,980
Short Int7.77%

Current

Price$115.35
Market Cap$26.57B
Live Nation Entertainment, Inc. operates as an entertainment company. The firm engages in producing, marketing, and selling live concerts for artists via its global concert pipe. It operates through the following segments: Concerts, Sponsorship and Advertising, and Ticketing. The Concerts segment is involved in the promotion of live music events in owned or operated venues and in rented third-party venues. The Sponsorship and Advertising segment manages the development of strategic sponsorship programs in addition to the sale of international, national, and local sponsorships and placement of advertising such as signage, promotional programs, rich media offerings, including advertising associated with live streaming and music-related content, and ads across its distribution network of venues, events, and websites. The Ticketing segment is involved in the management of the global ticketing operations, including providing ticketing software and services to clients, and consumers with a marketplace, both online and mobile, for tickets and event information. The Ticketing segment also operates the firm's primary ticketing website, www.ticketmaster.com. The company was founded in 1996 and is headquartered in Beverly Hills, CA.

Publicly traded companies mentioned herein: Live Nation Entertainment Inc (LYV)

Highlights

The presenter is long shares of Live Nation Entertainment Inc (LYV), the vertically integrated concert provider that is being sued by the DOJ. She thinks the market is pricing in a 70% chance of a breakup and a $75 breakup price, both of which seem overly bearish. Bears also point to consumer health worries, a risk she feels comfortable with, citing the modest MSD% decline in 2010 as evidence of the industry’s recession resilience. In spite of these risks, the business’s already-strong fundamentals are improving as a result of the underappreciated Venue Nation strategy. As estimates continue to move higher each quarter and the market moves away from its breakup expectation, she sees major upside from the current $92 share price to $140 based on 20x and 12.5x her 2026 FCF and EBITDA, respectively. 

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Idea Discussion

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