Lions Gate Price To Earning vs. Price To Sales

LGF-B Stock  USD 7.00  0.05  0.71%   
Based on the measurements of profitability obtained from Lions Gate's financial statements, Lions Gate's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Lions Gate's ability to earn profits and add value for shareholders. At present, Lions Gate's Days Sales Outstanding is projected to decrease significantly based on the last few years of reporting. The current year's Sales General And Administrative To Revenue is expected to grow to 0.13, whereas Price To Sales Ratio is forecasted to decline to 0.51. At present, Lions Gate's Accumulated Other Comprehensive Income is projected to increase significantly based on the last few years of reporting. The current year's Non Operating Income Net Other is expected to grow to about 35.3 M, whereas Operating Income is projected to grow to (891.9 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.560.455
Fairly Up
Slightly volatile
For Lions Gate profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lions Gate to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lions Gate Entertainment utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lions Gate's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lions Gate Entertainment over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Lions Gate's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lions Gate is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lions Gate's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Lions Gate Entertainment Price To Sales vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Lions Gate's current stock value. Our valuation model uses many indicators to compare Lions Gate value to that of its competitors to determine the firm's financial worth.
Lions Gate Entertainment is rated below average in price to earning category among its peers. It is rated below average in price to sales category among its peers fabricating about  0.02  of Price To Sales per Price To Earning. The ratio of Price To Earning to Price To Sales for Lions Gate Entertainment is roughly  52.21 . At present, Lions Gate's Price To Sales Ratio is projected to drop slightly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Lions Gate's earnings, one of the primary drivers of an investment's value.

Lions Price To Sales vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Lions Gate

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
23.78 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Lions Gate

P/S

 = 

MV Per Share

Revenue Per Share

 = 
0.46 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Lions Price To Sales Comparison

Lions Gate is currently under evaluation in price to sales category among its peers.

Lions Gate Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Lions Gate, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lions Gate will eventually generate negative long term returns. The profitability progress is the general direction of Lions Gate's change in net profit over the period of time. It can combine multiple indicators of Lions Gate, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income116 M121.8 M
Operating Income-938.8 M-891.9 M
Income Before Tax-1.2 B-1.1 B
Total Other Income Expense Net-242.5 M-230.4 M
Net Loss-1.1 B-1.1 B
Income Tax Expense-65 M-61.8 M
Net Loss-1.1 B-1.1 B
Non Operating Income Net Other33.7 M35.3 M
Net Loss-1.8 B-1.7 B
Net Interest Income-247.7 M-260.1 M
Interest Income22.1 M14.1 M
Change To Netincome2.2 B2.3 B
Net Loss(4.72)(4.49)
Income Quality(0.36)(0.34)
Net Income Per E B T 0.93  0.82 

Lions Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Lions Gate. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Lions Gate position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Lions Gate's important profitability drivers and their relationship over time.

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Other Information on Investing in Lions Stock

To fully project Lions Gate's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lions Gate Entertainment at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Lions Gate's income statement, its balance sheet, and the statement of cash flows.
Potential Lions Gate investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Lions Gate investors may work on each financial statement separately, they are all related. The changes in Lions Gate's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Lions Gate's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.