* Note: Prices are in Million (M) USD.
Description:
Madison Square Garden Sports Corp. The company is headquartered in New York, New York.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $89 M
Debt : $1,105 M
EBITDA : $93 M
Net Debt (Debt - Cash): $1,016 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Entertainment
Industry: Communication services
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 295.28
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 13 overlapping fiscal years (max 20).Average Free Cash Flow: $-27 M
Average Revenue: $986 M
Revenue Converted To Free Cash Flow (%): -2.8%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-06-30): $1,027 M
Revenue 4 Years Ago (2020-06-30): $603 M
Last 5 Years Average Revenue Growth: 14%
Since Revenue Growth is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-06-30): $24 M
Share Count 5 Years Ago (2020-06-30): $24 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.14
Trailing 12-Month Earnings Per Share (EPS): $0.20
Average Earnings Per Share (EPS): $0.67
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 7 valid ROE years (max 20).Average ROE: -2.9%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $198
52-Week Low: $173
Threshold Price (15% Above 52-Week Low): $199
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $4,693 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 0.20% exposure of Total Portfolio.
Value-Trade has assigned 12 points to above Madison Square Garden Sports Corp (MSGS) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Last 1 Years Avg PE
40.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 1 Years Avg P/E (40.00)
× EPS ($0.67) = $26.80.
Last 1 Years Avg PE 40, Fair Value PE 12, Industry Based PE 18, Growth Based PE 14, RCFC Based PE 10, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 17.30. Value-Trades has assined P/E value 17.30. Since an average (Current Year EPS + Next Year EPS) earning per share is $0.67.
The fair value of Madison Square Garden Sports Corp (MSGS) stock should be (17.30 x $0.67) = $11.59.
