Live Nation Entertainment, Inc (NYSE: LYV) is one of the leading live entertainment company, which includes global market leaders like Ticketmaster, Live Nations Concerts and Live Nation Media & Sponsorship.

Key Updates:

• LYV announced its third-quarter results, wherein the company posted its total revenue of USD 2,698.722 million, significantly higher than USD 184.018 million in pcp. The growth was primarily driven by restart of the live concerts across the geographies which was closed in pcp due to COVID 19 restrictions.
• In Q3FY21, the group reported its operating margin and net margin of 6.2% and 3.2%, respectively, as compared to the industry median of 3.9% and 0.9%, respectively.
• Net income was recorded at USD 86.867 million in Q3FY21, as compared to a net loss of USD 542.458 million in pcp.
• On the flip side, the company has a weak debt protection metrics as it reported net debt to EBITDA of 5.54x in Q3FY21, significantly higher than the industry median of 1.65x.

Q3FY21 Income Statement Highlights (Source: Company Report)

Valuation Methodology (Illustrative): Price to Earnings based

Analysis By Kaline Group

Stock Recommendation: Due to the reopening of the major concerts across the globe, the stock of LYV appreciated ~42% and ~55% in the last six months and one year, respectively. Moreover, it closed above its 50-days and 100-days simple moving averages (SMA), indicating a bullish pattern. For the fourth quarter of FY21, the company transacted record-level fee-bearing GTV. For FY22, the company expects strong pipeline for its sponsorship and advertising segment. Due to the promising outlook, the stock moved much ahead of its fundamentals. We have valued the stock using price to earnings base relative valuation method and considered peers like Fox Corp, Vivid Seats Inc etc. and arrived a double-digit downside in percentage terms. Hence, we give an ‘Expensive’ rating on the stock of LYV at the last traded USD 114.81 on January 14, 2022.

Technical Price Chart (as of January 14, 2022). Analysis by Kalkine

*The reference data in this report has been partly sourced from REFINITIV.