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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Madison Square Garden Sports's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 71.82. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Madison Square Garden Sports's Degree of Operating Leverage or its related term are showing as below:
MSGS's Degree of Operating Leverage is ranked worse than 94.72% of 984
companies
in the Media - Diversified industry
Industry Median: 0.94
vs MSGS: 71.82
Madison Square Garden Sports (NYSE:MSGS) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Madison Square Garden Sports Degree of Operating Leverage Related Terms
Madison Square Garden Sports Degree of Operating Leverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Madison Square Garden Sports Degree of Operating Leverage Chart
MSGS vs PSKY, SIRI, LLYVA: Degree of Operating Leverage Comparison
For the Entertainment subindustry, Madison Square Garden Sports's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Madison Square Garden Sports Degree of Operating Leverage vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Madison Square Garden Sports's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Madison Square Garden Sports's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 71.82 mean?
Madison Square Garden Sports (MSGS) has a Degree of Operating Leverage of 71.82 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Madison Square Garden Sports and its competitors. According to the industry distribution chart, Madison Square Garden Sports ranks #932 out of 984 companies in the Media - Diversified industry, placing it in the top 94.7%.
Is Madison Square Garden Sports' Degree of Operating Leverage too high?
Madison Square Garden Sports' current Degree of Operating Leverage is 71.82. The Media - Diversified industry median Degree of Operating Leverage is 0.94. Madison Square Garden Sports' value of 71.82 is 7540.4% above this industry median. Based on the distribution chart, Madison Square Garden Sports ranks #932 out of 984 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Madison Square Garden Sports has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Madison Square Garden Sports' Degree of Operating Leverage compare to PSKY and SIRI?
According to the Media - Diversified industry distribution chart, Madison Square Garden Sports ranks #932 out of 984 companies for Degree of Operating Leverage. This places Madison Square Garden Sports in the lower half of its industry. The industry median Degree of Operating Leverage is 0.94. Madison Square Garden Sports' value of 71.82 is 7540.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Media - Diversified company?
The median Degree of Operating Leverage among Media - Diversified companies is 0.94, based on 984 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Madison Square Garden Sports's current Degree of Operating Leverage of 71.82 is 7540.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Madison Square Garden Sports and its competitors. For the Media - Diversified industry, the median Degree of Operating Leverage is 0.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Madison Square Garden Sports's current Degree of Operating Leverage is 71.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Madison Square Garden Sports stock overvalued right now?
Based on GuruFocus' analysis, Madison Square Garden Sports (MSGS) is currently considered Significantly Overvalued. The stock's GF Value™ is $237.09, compared to a current price of $402.90 — trading 69.9% above its estimated fair value. The current Degree of Operating Leverage is 71.82 and 7540.4% above the Media - Diversified industry median of 0.94. Madison Square Garden Sports' overall GF Score™ is 56/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Madison Square Garden Sports (MSGS), the current Degree of Operating Leverage is 71.82 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Madison Square Garden Sports (MSGS) Overvalued in 2026?
Based on GuruFocus' analysis, Madison Square Garden Sports stock appears to be overvalued.
The current stock price of $402.90 is trading 69.9% above its estimated GF Value™ of $237.09.
GuruFocus considers Madison Square Garden Sports to be Significantly Overvalued.
Key valuation signals for MSGS:
Degree of Operating Leverage: 71.82
GF Value™: $237.09 vs. price of $402.90 (69.9% above fair value)
Industry Position: 7540.4% above the Media - Diversified median (#932 of 984)
No single metric tells the full story. See the MSGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Madison Square Garden Sports Corp owns and operates a portfolio of assets featuring some of the recognized sports teams, including the Knicks of the NBA and the Rangers of the NHL. It generates revenue from several sources: ticket sales and a portion of suite rental fees at The Garden and others. It has one operating and reportable segment and one reporting unit for goodwill impairment testing purposes.
56GF Score
Get the complete analysis for MSGS
Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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