| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 5.40 | -96 |
| Graham Formula | 23.40 | -81 |
Live Nation Entertainment Inc. (3LN.DE) is a global leader in live entertainment, headquartered in Beverly Hills, California. The company operates across four key segments: Concerts, Sponsorship & Advertising, Ticketing, and Artist Nation. With a market cap of approximately €29.25 billion, Live Nation dominates the live events industry by promoting concerts, managing venues, producing music festivals, and offering ticketing services through its subsidiary, Ticketmaster. The company's integrated business model allows it to capitalize on the entire live entertainment value chain, from artist management to fan engagement. Operating in the Media & Entertainment sector under the broader Technology umbrella, Live Nation leverages its vast network of venues, artist relationships, and digital platforms to drive revenue growth. Its strong cash position (€6.1 billion) and diversified income streams make it a resilient player in the post-pandemic live events resurgence.
Live Nation presents a compelling investment case due to its dominant market position in live entertainment, diversified revenue streams, and strong post-pandemic recovery. The company's €23.16 billion revenue and €896 million net income in FY2024 highlight its profitability, while its €1.73 billion operating cash flow demonstrates robust operational efficiency. However, investors should note the high total debt of €8.27 billion and lack of dividend payments. The stock's beta of 0 suggests low correlation with broader market movements, potentially offering portfolio diversification benefits. Key risks include dependence on live event attendance (vulnerable to economic downturns or health crises) and regulatory scrutiny of its Ticketmaster monopoly. The capital-intensive nature of the business (€647 million in capex) may also pressure margins.
Live Nation enjoys significant competitive advantages through its vertical integration and scale. Its ownership of Ticketmaster creates a powerful moat in ticketing, while its vast network of 300+ owned/operated venues (including House of Blues) ensures control over key distribution channels. The company's sponsorship segment leverages this ecosystem to offer unmatched reach to advertisers. Artist Nation provides sticky revenue through long-term artist management contracts. However, the live entertainment industry faces disruption from digital platforms offering virtual concerts. Live Nation's scale allows it to outbid competitors for top artist tours, but regional promoters sometimes offer better local market knowledge. The Ticketmaster division faces constant regulatory threats due to its market dominance. Competitors with stronger balance sheets could challenge its venue operations, while streaming platforms like Spotify are potential threats in artist discovery. Live Nation's main defense is its end-to-end control of the live music value chain - a model difficult to replicate.