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Making sense of the markets this week: October 1, 2023


Right here’s what we all know.

  • Swift’s Eras Tour is ready to gross about USD$2.2 billion this 12 months 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 bought for between USD $300 million and $450 million.
  • Swift then re-recorded all that music. Finally, she created extra well-liked music, and now possesses a listing that could possibly be value considerably greater than the worth of her first six albums. 

So, if we are saying that the “Taylor Swift Co.” is ready to herald about USD$3 billion in revenues in 2023, not counting streaming earnings. (We don’t understand how a lot she makes every year from streaming, however it must be a good quantity, contemplating what her outdated albums bought for.)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 quite a bit larger than, say, Algonquin or fellow backside TSX-dweller Gildan Activewear (GIL/TSX). That might imply we might in all probability increase that ratio a bit. It’s additionally value mentioning that the “Taylor Swift Co.” would haven’t any loans, and therefore, no sensitivity to larger rates of interest (one thing AQN traders would possibly cherish in the intervening time).

EqVista.com recommends a price-to-sales for the films/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 will put this hypothetical firm properly into the TSX60, and value greater than Hydro One

Sure—”Taylor Swift Co.” could possibly be value greater than the corporate that delivers electrical energy to nearly all of Ontario’s properties!

Whereas it may be powerful to justify that type of a number of given the truth that Swift can’t tour perpetually (might she?) and that her revenues will possible go down within the years to return, I’d say that if Swift have been an organization, I’d worth her lifetime earnings as greater than the sixtieth largest firm in Canada, and consequently she could be a part of the TSX 60 index.

Sure, it’s free: The Canadian Monetary Summit

In case you missed it, we launched the 2023 speaker lineup for the Canadian Monetary Summit this previous week. Registering for the Summit is totally free and you may click on right here for extra particulars.



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