Sphere Entertainment Stock Valuation Insights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Yahoo Finance
- Strong Stock Performance: Sphere Entertainment has delivered approximately 3.9x returns over the past three years, raising questions about whether the current price still allows for further upside, especially given the inconsistent market valuation signals.
- Cash Flow Valuation Analysis: The Discounted Cash Flow (DCF) model estimates Sphere Entertainment's latest free cash flow at about $84.6 million, with an estimated intrinsic value of $190 per share, indicating a 14% discount on the current stock price, suggesting potential undervaluation.
- P/E Ratio Comparison: Sphere Entertainment currently trades at a P/E ratio of 51.5x, significantly higher than the entertainment industry average of 23.0x, indicating the market's high expectations for its earnings but also reflecting a discount based on risk and earnings quality.
- Future Growth Paths: Market views on Sphere Entertainment are polarized, with one side focusing on the potential of content and venue expansion while the other is concerned about demand and cost risks, which may impact investor assessments of its stock price.
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Analyst Views on SPHR
Wall Street analysts forecast SPHR stock price to fall
12 Analyst Rating
7 Buy
4 Hold
1 Sell
Moderate Buy
Current: 151.510
Low
45.00
Averages
91.80
High
106.00
Current: 151.510
Low
45.00
Averages
91.80
High
106.00
About SPHR
Sphere Entertainment Co. is a live entertainment and media company. The Company's segments include Sphere and MSG Networks. Its Sphere segment is an entertainment medium powered by technologies to create multi-sensory experiences. Its venue can host a variety of events year-round, including The Sphere Experience, which features original immersive productions, as well as concerts and residencies from artists, and marquee sports and corporate events. Production efforts are supported by Sphere Studios. Its MSG Networks segment operates two regional sports and entertainment networks, MSG Network and MSG Sportsnet, as well as a direct-to-consumer and authenticated streaming product, MSG+, delivering a range of live sports content and other programming. The MSG Networks segment features a range of sports content, including exclusive live local games and other programming of the New York Knicks of the NBA and the New York Rangers, New York Islanders, New Jersey Devils and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Sphere Entertainment Stock Valuation Insights
- Strong Stock Performance: Sphere Entertainment has delivered approximately 3.9x returns over the past three years, raising questions about whether the current price still allows for further upside, especially given the inconsistent market valuation signals.
- Cash Flow Valuation Analysis: The Discounted Cash Flow (DCF) model estimates Sphere Entertainment's latest free cash flow at about $84.6 million, with an estimated intrinsic value of $190 per share, indicating a 14% discount on the current stock price, suggesting potential undervaluation.
- P/E Ratio Comparison: Sphere Entertainment currently trades at a P/E ratio of 51.5x, significantly higher than the entertainment industry average of 23.0x, indicating the market's high expectations for its earnings but also reflecting a discount based on risk and earnings quality.
- Future Growth Paths: Market views on Sphere Entertainment are polarized, with one side focusing on the potential of content and venue expansion while the other is concerned about demand and cost risks, which may impact investor assessments of its stock price.
See More
Sphere Entertainment to Feature The Rocky Horror Picture Show in Las Vegas in 2027
- New Show Introduction: Sphere Entertainment has announced that The Rocky Horror Picture Show will debut at its Las Vegas venue in 2027, a cult classic since its 1973 stage premiere, which is expected to draw significant audiences and enhance the company's market appeal.
- IP Value Enhancement: Analyst Joseph Stauff noted that Rocky Horror adds unique intellectual property to Sphere's content portfolio, likely scheduled for later time slots around 10 p.m. to 12 a.m., thereby increasing the diversity and attractiveness of the company's programming.
- Revenue Growth Expectations: Currently, The Wizard of Oz runs about 17 shows weekly with an 85% sell-through rate, and the introduction of Rocky Horror is expected to add approximately three new shows per week, with a projected 75% sell-through rate, enhancing overall revenue and profit margins due to its niche appeal.
- Strong Stock Performance: Although shares dipped 2.1% on Wednesday, Sphere Entertainment's stock has risen over 75% year-to-date, reflecting market confidence in its growth potential, particularly with the upcoming new show.
See More
Investors Should Consider MSG Sports Stock
- Stock Performance: MSG Sports shares surged 22.5% from early April to June 11, reaching a record high following the Knicks' championship parade, although they recently pulled back 6% as investors took profits.
- Valuation Discrepancy: Cramer highlighted that MSG Sports' market capitalization is less than the combined value of its franchises, with the Knicks valued at approximately $10.1 billion and the Rangers at $3.8 billion, totaling nearly $14 billion, while MSG Sports' enterprise value is under $10 billion.
- Potential Spin-off: MSG Sports is exploring a spin-off of the Rangers into a standalone business, which could help unlock hidden value for investors, drawing parallels to its successful entertainment venue spin-off in 2020.
- Investment Appeal: While Cramer cautioned that MSG Sports remains a unique investment due to Chairman James Dolan's control over voting rights, he believes the current setup is attractive following the stock's recent pullback.
See More
Sphere Entertainment's 'The Wizard of Oz' Surpasses $400M in Ticket Sales
- Box Office Achievement: Since its opening on August 28, 2025, 'The Wizard of Oz' has generated over $400 million in ticket sales and sold more than 3 million tickets, demonstrating the show's strong market appeal and audience demand, thereby solidifying Sphere Entertainment's position in the entertainment industry.
- Stock Price Reaction: Sphere Entertainment's shares rose 2.7% in extended trading, reflecting investor optimism regarding the company's future growth potential, particularly with the momentum from its new projects likely to enhance overall performance.
- New Project Development: Sphere Entertainment is developing a new Sphere Experience project, 'The Rocky Horror Picture Show,' expected to debut in 2027, which aims to reimagine and enhance the immersive audience experience of the classic 1975 film, attracting more viewers and enriching its content lineup.
- Global Expansion Plans: Sphere Entertainment is also planning additional Sphere venues in Abu Dhabi and National Harbor, marking the first step in its vision for a global venue network, which is expected to further drive growth and brand influence in international markets.
See More
The Wizard of Oz Generates Over $400 Million in Ticket Sales
- Box Office Achievement: Since its opening on August 28, 2025, The Wizard of Oz at Sphere has generated over $400 million in ticket sales, demonstrating its strong market appeal and audience demand.
- Audience Engagement: The production has sold more than 3 million tickets, reflecting widespread recognition and enthusiastic response among viewers, further solidifying Sphere's position as a leader in immersive experiences.
- Market Expansion Plans: Sphere Entertainment Co. plans to open additional Sphere venues in Abu Dhabi and National Harbor, indicating the company's commitment to global expansion and enhancing brand influence to meet the growing demand for immersive experiences.
- Diverse Business Portfolio: In addition to immersive experiences, Sphere Entertainment Co. owns MSG Networks, which operates two regional sports and entertainment networks, showcasing the company's comprehensive strength in multimedia and technology sectors.
See More
Sphere Entertainment Announces New Experience: The Rocky Horror Picture Show
- New Experience Announcement: Sphere Entertainment, in collaboration with Primary Wave Music and 20th Century Studios, has announced the upcoming 2027 production of The Rocky Horror Picture Show, which will utilize advanced technologies to enhance the viewing experience of the beloved 1975 film, aiming to attract a new generation of audiences.
- Immersive Content Strategy: This new production is part of the Sphere Experience® series, which includes original immersive content such as Postcard from Earth and The Wizard of Oz, showcasing Sphere's ongoing investment and strategic positioning in the innovative entertainment sector.
- Technology and Storytelling Integration: Sphere Entertainment's Executive Chairman Jim Dolan stated that through Sphere Studios, they aim to merge technology with storytelling to enhance audience engagement, further expanding the boundaries of immersive experiences and strengthening brand influence.
- Global Expansion Plans: With the first Sphere venue opened in Las Vegas, plans for additional venues in Abu Dhabi and National Harbor indicate Sphere's ambition to expand its immersive experience market on a global scale.
See More
Sphere Entertainment Stock Valuation Insights
- Strong Stock Performance: Sphere Entertainment has delivered approximately 3.9x returns over the past three years, raising questions about whether the current price still allows for further upside, especially given the inconsistent market valuation signals.
- Cash Flow Valuation Analysis: The Discounted Cash Flow (DCF) model estimates Sphere Entertainment's latest free cash flow at about $84.6 million, with an estimated intrinsic value of $190 per share, indicating a 14% discount on the current stock price, suggesting potential undervaluation.
- P/E Ratio Comparison: Sphere Entertainment currently trades at a P/E ratio of 51.5x, significantly higher than the entertainment industry average of 23.0x, indicating the market's high expectations for its earnings but also reflecting a discount based on risk and earnings quality.
- Future Growth Paths: Market views on Sphere Entertainment are polarized, with one side focusing on the potential of content and venue expansion while the other is concerned about demand and cost risks, which may impact investor assessments of its stock price.
See More
Sphere Entertainment to Feature The Rocky Horror Picture Show in Las Vegas in 2027
- New Show Introduction: Sphere Entertainment has announced that The Rocky Horror Picture Show will debut at its Las Vegas venue in 2027, a cult classic since its 1973 stage premiere, which is expected to draw significant audiences and enhance the company's market appeal.
- IP Value Enhancement: Analyst Joseph Stauff noted that Rocky Horror adds unique intellectual property to Sphere's content portfolio, likely scheduled for later time slots around 10 p.m. to 12 a.m., thereby increasing the diversity and attractiveness of the company's programming.
- Revenue Growth Expectations: Currently, The Wizard of Oz runs about 17 shows weekly with an 85% sell-through rate, and the introduction of Rocky Horror is expected to add approximately three new shows per week, with a projected 75% sell-through rate, enhancing overall revenue and profit margins due to its niche appeal.
- Strong Stock Performance: Although shares dipped 2.1% on Wednesday, Sphere Entertainment's stock has risen over 75% year-to-date, reflecting market confidence in its growth potential, particularly with the upcoming new show.
See More
Investors Should Consider MSG Sports Stock
- Stock Performance: MSG Sports shares surged 22.5% from early April to June 11, reaching a record high following the Knicks' championship parade, although they recently pulled back 6% as investors took profits.
- Valuation Discrepancy: Cramer highlighted that MSG Sports' market capitalization is less than the combined value of its franchises, with the Knicks valued at approximately $10.1 billion and the Rangers at $3.8 billion, totaling nearly $14 billion, while MSG Sports' enterprise value is under $10 billion.
- Potential Spin-off: MSG Sports is exploring a spin-off of the Rangers into a standalone business, which could help unlock hidden value for investors, drawing parallels to its successful entertainment venue spin-off in 2020.
- Investment Appeal: While Cramer cautioned that MSG Sports remains a unique investment due to Chairman James Dolan's control over voting rights, he believes the current setup is attractive following the stock's recent pullback.
See More
Sphere Entertainment's 'The Wizard of Oz' Surpasses $400M in Ticket Sales
- Box Office Achievement: Since its opening on August 28, 2025, 'The Wizard of Oz' has generated over $400 million in ticket sales and sold more than 3 million tickets, demonstrating the show's strong market appeal and audience demand, thereby solidifying Sphere Entertainment's position in the entertainment industry.
- Stock Price Reaction: Sphere Entertainment's shares rose 2.7% in extended trading, reflecting investor optimism regarding the company's future growth potential, particularly with the momentum from its new projects likely to enhance overall performance.
- New Project Development: Sphere Entertainment is developing a new Sphere Experience project, 'The Rocky Horror Picture Show,' expected to debut in 2027, which aims to reimagine and enhance the immersive audience experience of the classic 1975 film, attracting more viewers and enriching its content lineup.
- Global Expansion Plans: Sphere Entertainment is also planning additional Sphere venues in Abu Dhabi and National Harbor, marking the first step in its vision for a global venue network, which is expected to further drive growth and brand influence in international markets.
See More
The Wizard of Oz Generates Over $400 Million in Ticket Sales
- Box Office Achievement: Since its opening on August 28, 2025, The Wizard of Oz at Sphere has generated over $400 million in ticket sales, demonstrating its strong market appeal and audience demand.
- Audience Engagement: The production has sold more than 3 million tickets, reflecting widespread recognition and enthusiastic response among viewers, further solidifying Sphere's position as a leader in immersive experiences.
- Market Expansion Plans: Sphere Entertainment Co. plans to open additional Sphere venues in Abu Dhabi and National Harbor, indicating the company's commitment to global expansion and enhancing brand influence to meet the growing demand for immersive experiences.
- Diverse Business Portfolio: In addition to immersive experiences, Sphere Entertainment Co. owns MSG Networks, which operates two regional sports and entertainment networks, showcasing the company's comprehensive strength in multimedia and technology sectors.
See More
Sphere Entertainment Announces New Experience: The Rocky Horror Picture Show
- New Experience Announcement: Sphere Entertainment, in collaboration with Primary Wave Music and 20th Century Studios, has announced the upcoming 2027 production of The Rocky Horror Picture Show, which will utilize advanced technologies to enhance the viewing experience of the beloved 1975 film, aiming to attract a new generation of audiences.
- Immersive Content Strategy: This new production is part of the Sphere Experience® series, which includes original immersive content such as Postcard from Earth and The Wizard of Oz, showcasing Sphere's ongoing investment and strategic positioning in the innovative entertainment sector.
- Technology and Storytelling Integration: Sphere Entertainment's Executive Chairman Jim Dolan stated that through Sphere Studios, they aim to merge technology with storytelling to enhance audience engagement, further expanding the boundaries of immersive experiences and strengthening brand influence.
- Global Expansion Plans: With the first Sphere venue opened in Las Vegas, plans for additional venues in Abu Dhabi and National Harbor indicate Sphere's ambition to expand its immersive experience market on a global scale.
See More
