Sphere Entertainment Valuation
| SPHR Stock | 39.26 2.00 4.85% |
At this time, the company appears to be overvalued. Sphere Entertainment has a current Real Value of USD31.57 per share. The regular price of the company is USD39.26. Our model measures the value of Sphere Entertainment from inspecting the company fundamentals such as Operating Margin of (0.13) %, shares outstanding of 28.27 M, and Return On Equity of 0.0597 as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend buying undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other. Key fundamental drivers impacting Sphere Entertainment's valuation include:
Price Book 0.5958 | Enterprise Value 2.4 B | Enterprise Value Ebitda 7.1822 | Price Sales 2.0306 | Trailing PE 9.7178 |
Overvalued
Today
Please note that Sphere Entertainment's price fluctuation is very steady at this time. Calculation of the real value of Sphere Entertainment is based on 3 months time horizon. Increasing Sphere Entertainment's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Sphere Entertainment Co is useful when determining the fair value of the Sphere stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Sphere Entertainment. Since Sphere Entertainment is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Sphere Stock. However, Sphere Entertainment's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 39.26 | Real 31.57 | Target 31.33 | Hype 39.31 |
The real value of Sphere Stock, also known as its intrinsic value, is the underlying worth of Sphere Entertainment Company, which is reflected in its stock price. It is based on Sphere Entertainment's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Sphere Entertainment's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Sphere Entertainment's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Sphere Entertainment Co helps investors to forecast how Sphere stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Sphere Entertainment more accurately as focusing exclusively on Sphere Entertainment's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Sphere Entertainment's intrinsic value based on its ongoing forecasts of Sphere Entertainment's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Sphere Entertainment's closest peers. When choosing an evaluation method for Sphere Entertainment, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Sphere Entertainment Investments |
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Sphere Valuation Trend
Knowing Sphere Entertainment's actual value is paramount for traders to make sound investment determinations. Sphere Entertainment's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Sphere Entertainment's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Sphere Entertainment's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Sphere Market Cap
Sphere Entertainment Co is currently regarded as top stock in market capitalization category among related companies. Market capitalization of Communication Services industry is at this time estimated at about 21.08 Billion. Sphere Entertainment holds roughly 1.38 Billion in market capitalization claiming about 7% of stocks in Communication Services industry.Sphere Entertainment Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Sphere Entertainment's current stock value. Our valuation model uses many indicators to compare Sphere Entertainment value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Sphere Entertainment competition to find correlations between indicators driving Sphere Entertainment's intrinsic value. More Info.Sphere Entertainment Co is currently regarded as top stock in price to book category among related companies. It is currently regarded as top stock in price to sales category among related companies fabricating about 3.41 of Price To Sales per Price To Book. At this time, Sphere Entertainment's Price To Sales Ratio is relatively stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Sphere Entertainment by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Sphere Entertainment's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Sphere Entertainment's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Sphere Entertainment's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Sphere Entertainment and how it compares across the competition.
About Sphere Entertainment Valuation
The stock valuation mechanism determines the current worth of Sphere Entertainment Co on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Sphere Entertainment Co. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Sphere Entertainment based exclusively on its fundamental and basic technical indicators. By analyzing Sphere Entertainment's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Sphere Entertainment's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Sphere Entertainment. We calculate exposure to Sphere Entertainment's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Sphere Entertainment's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 208.5 M | 283.1 M | |
| Pretax Profit Margin | 0.43 | 0.45 | |
| Operating Profit Margin | (0.55) | (0.52) | |
| Net Profit Margin | 0.79 | 0.83 | |
| Gross Profit Margin | 0.36 | 0.34 |
8 Steps to conduct Sphere Entertainment's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Sphere Entertainment's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Sphere Entertainment's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Sphere Entertainment's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Sphere Entertainment's revenue streams: Identify Sphere Entertainment's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Sphere Entertainment's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Sphere Entertainment's growth potential: Evaluate Sphere Entertainment's management, business model, and growth potential.
- Determine Sphere Entertainment's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Sphere Entertainment's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Sphere Entertainment Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Sphere Entertainment does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 34.9 M |
Sphere Entertainment Current Valuation Indicators
Valuation refers to the process of determining the present value of Sphere Entertainment Co and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Sphere we look at many different elements of the entity such as Sphere's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Sphere Entertainment's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Sphere Entertainment's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Sphere Entertainment, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Sphere Entertainment's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Sphere Entertainment's worth.When determining whether Sphere Entertainment is a strong investment it is important to analyze Sphere Entertainment's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Sphere Entertainment's future performance. For an informed investment choice regarding Sphere Stock, refer to the following important reports: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Sphere Entertainment Co. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in rate. Note that the Sphere Entertainment information on this page should be used as a complementary analysis to other Sphere Entertainment's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Complementary Tools for Sphere Stock analysis
When running Sphere Entertainment's price analysis, check to measure Sphere Entertainment's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Sphere Entertainment is operating at the current time. Most of Sphere Entertainment's value examination focuses on studying past and present price action to predict the probability of Sphere Entertainment's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sphere Entertainment's price. Additionally, you may evaluate how the addition of Sphere Entertainment to your portfolios can decrease your overall portfolio volatility.
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Is Sphere Entertainment's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sphere Entertainment. If investors know Sphere will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sphere Entertainment listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share 4.04 | Revenue Per Share 20.705 | Quarterly Revenue Growth 0.969 | Return On Assets (0.03) | Return On Equity 0.0597 |
The market value of Sphere Entertainment is measured differently than its book value, which is the value of Sphere that is recorded on the company's balance sheet. Investors also form their own opinion of Sphere Entertainment's value that differs from its market value or its book value, called intrinsic value, which is Sphere Entertainment's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sphere Entertainment's market value can be influenced by many factors that don't directly affect Sphere Entertainment's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sphere Entertainment's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sphere Entertainment is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sphere Entertainment's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.