Right here’s what we all know.
- Swift’s Eras Tour is about to gross about USD$2.2 billion this yr within the U.S. alone.
- She has dozens of worldwide dates for her Eras Tour booked.
- The Period Excursions film is predicted to gross over USD $100 million.
- Again in 2019, the publishing rights for her first six albums sold for between USD $300 million and $450 million.
- Swift then re-recorded all that music. Finally, she created extra common music, and now possesses a listing that may very well be value considerably greater than the worth of her first six albums.
So, if we are saying that the “Taylor Swift Co.” is about to herald about USD$3 billion in revenues in 2023, not counting streaming revenue. (We don’t know the way a lot she makes every year from streaming, nevertheless it needs to be a good quantity, contemplating what her previous albums offered for.)
Then it follows that utilizing a really conservative one-and-a-half occasions the price-to-sales ratio, Swift’s market cap could be about USD$4.5 billion.
Now, that stated, her revenue margins are rather a lot increased than, say, Algonquin or fellow backside TSX-dweller Gildan Activewear (GIL/TSX). That might imply we may in all probability enhance that ratio a bit. It’s additionally value mentioning that the “Taylor Swift Co.” would don’t have any loans, and therefore, no sensitivity to increased rates of interest (one thing AQN investors might cherish in the intervening time).
EqVista.com recommends a price-to-sales for the flicks/leisure trade of three.68. At that a number of, Swift Co. is value over USD$11 billion. That not solely places Swift above Algonquin and Gildan, however it could put this hypothetical firm properly into the TSX60, and worth more than Hydro One.
Sure—“Taylor Swift Co.” may very well be value greater than the corporate that delivers electrical energy to nearly all of Ontario’s houses!
Whereas it may be powerful to justify that form of a number of given the truth that Swift can’t tour without end (may she?) and that her revenues will seemingly go down within the years to come back, I’d say that if Swift have been an organization, I’d worth her lifetime earnings as greater than the sixtieth greatest firm in Canada, and consequently she could be a part of the TSX60 index.
Travis Kelce jerseys noticed a virtually 400% spike in gross sales after Taylor Swift attended his recreation, TMZ stories. pic.twitter.com/53VzvT81E7
— Pop Base (@PopBase) September 25, 2023
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