Madison Square Garden Entertainment Corp. logo MSGE - Madison Square Garden Entertainment Corp.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 8
HOLD 5
SELL 0
STRONG
SELL
0
| PRICE TARGET: $66.71 DETAILS
HIGH: $76.00
LOW: $59.00
MEDIAN: $68.00
CONSENSUS: $66.71
DOWNSIDE: 4.21%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Leveraged Infrastructure 80% confidence

Primary model: EV/EBITDA × Cable Broadband Multiple

Valuation Signal Overvalued Strong
Trading 244.4% above fair value
Current Price $69.64
Bear Case $4.66 93.3% downside ($4.66 - $69.64) / $69.64 = -93.3% EBITDA $0B × 7.2x − $1B debt
Fair Value $20.22 71.0% downside ($20.22 - $69.64) / $69.64 = -71.0% EBITDA $0B × 9.0x − $1B debt
Bull Case $35.76 48.6% downside ($35.76 - $69.64) / $69.64 = -48.6% EBITDA $0B × 10.8x − $1B debt

Adjust Assumptions

9.0x

Key Value Driver

EV/EBITDA multiple (9.0x) vs. 6.7× leverage

Implied Market Multiple 25.6x

Plain-Language Summary

Our base-case estimate uses EV/EBITDA × Cable Broadband Multiple. We then blend that result with the average analyst price target of $66.71 from 13 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $20.22 per share.

Warnings

Debt is 6.7x annual operating profit. Because the company carries so much debt, even small shifts in business value cause big swings in the stock price.
We value this business based on total operating profit relative to total enterprise value (debt + equity). Profit-per-share metrics are unreliable when debt makes up most of the company's value.
Wall Street's average price target is $66.71 (from 13 analysts). Our estimate is 87% below the consensus -- consider that gap carefully.

Key Risks

  • Debt refinancing at higher rates compresses equity value quickly
  • EBITDA flatters — capex, interest, and taxes eat the cash flow
  • Cord-cutting and wireless substitution are structural headwinds for cable