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Here’s what we know.
- Swift’s Eras Tour is set to gross about USD$2.2 billion this year in the U.S. alone.
- She has dozens of international dates for her Eras Tour booked.
- The Era Tours movie is expected to gross over USD $100 million.
- Back 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. Ultimately, she created more popular music, and now possesses a catalogue that could be worth substantially more than the value of her first six albums.
So, if we say that the “Taylor Swift Co.” is set to bring in about USD$3 billion in revenues in 2023, not counting streaming income. (We don’t know how much she makes each year from streaming, but it has to be a fair amount, considering what her old albums sold for.)
Then it follows that using a very conservative one-and-a-half times the price-to-sales ratio, Swift’s market cap would be about USD$4.5 billion.
Now, that said, her profit margins are a lot higher than, say, Algonquin or fellow bottom TSX-dweller Gildan Activewear (GIL/TSX). That would mean we could probably boost that ratio a bit. It’s also worth mentioning that the “Taylor Swift Co.” would have no loans, and hence, no sensitivity to higher interest rates (something AQN investors might cherish at the moment).
EqVista.com recommends a price-to-sales for the movies/entertainment industry of 3.68. At that multiple, Swift Co. is worth over USD$11 billion. That not only puts Swift above Algonquin and Gildan, but it would put this hypothetical company well into the TSX60, and worth more than Hydro One.
Yes—”Taylor Swift Co.” could be worth more than the company that delivers electricity to almost all of Ontario’s homes!
While it might be tough to justify that sort of multiple given the fact that Swift can’t tour forever (could she?) and that her revenues will likely go down in the years to come, I would say that if Swift were a company, I would value her lifetime earnings as more than the 60th biggest company in Canada, and consequently she would be part of the TSX 60 index.
Travis Kelce jerseys saw a nearly 400% spike in sales after Taylor Swift attended his game, TMZ reports. pic.twitter.com/53VzvT81E7
— Pop Base (@PopBase) September 25, 2023
Yes, it’s free: The Canadian Financial Summit
In case you missed it, we released the 2023 speaker lineup for the Canadian Financial Summit this past week. Registering for the Summit is completely free and you can click here for more details.
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