Madison Square Garden Sports (MSGS) shares reacted after the company’s latest quarterly earnings report revealed a 26% drop in revenue. The decline was driven by lower league distributions and adjustments to local media rights fees. Net loss widened compared to the previous year, and results missed analyst revenue expectations. Investors were left without new performance forecasts, adding to the uncertainty around MSGS stock.
See our latest analysis for Madison Square Garden Sports.
After MSGS posted its quarterly results, the share price saw recent pressure reflecting caution over the 26% revenue drop and lack of forward guidance. Key partnerships and strong season ticket renewals offered some support. Despite volatility, shareholders have eked out a modest 0.5% total return over the past year. The stock’s three-year total return of 43.7% has rewarded those with a longer-term view, although momentum has cooled recently as markets weigh the company’s next moves.
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Given the steep revenue drop, a widened net loss, and the absence of new guidance, investors may wonder if prevailing uncertainty means MSGS shares are trading at a bargain or if the market has already priced in a rebound in growth.
Most Popular Narrative: 17.7% Undervalued
With a fair value estimate of $263.67 per share, the prevailing narrative points to significant upside from the latest closing price near $217. Recent analyst optimism hinges on future growth drivers and strong underlying franchise value.
Expanded international partnerships and marketing deals, such as with Abu Dhabi’s Department of Culture and Tourism, signal rising global interest in the Knicks and Rangers franchises. This enhances sponsorship income and merchandise opportunities, which are likely to boost top-line revenue.
Read the complete narrative.
Curious how global deals and brand power could fuel a valuation leap? The full narrative reveals how big assumptions about transformation and monetization are embedded in this estimate. Get the details and judge for yourself if reality will match the ambition.
Result: Fair Value of $263.67 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, reduced local media revenues and ongoing dependence on the Knicks and Rangers add meaningful risks, which could unsettle the bullish view on MSGS.
Find out about the key risks to this Madison Square Garden Sports narrative.
Another View: Valuation by Sales Ratio Poses Questions
Taking a second look, the company’s price-to-sales ratio stands at 5.1x, which is more than double the peer average of 2.5x and well above the US Entertainment industry standard of 1.6x. Even compared to its fair ratio of 1.1x, MSGS looks expensive. This premium suggests that investors may be betting on future growth, but is the upside already priced in?
See what the numbers say about this price — find out in our valuation breakdown.
NYSE:MSGS PS Ratio as at Nov 2025 Build Your Own Madison Square Garden Sports Narrative
If you see things differently or want to take a hands-on approach, you can quickly assemble your own perspective from the latest numbers. Do it your way.
A great starting point for your Madison Square Garden Sports research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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