Madison Square Garden Entertainment (NYSE:MSGE) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Madison Square Garden Entertainment had a gross margin of 40.39% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Madison Square Garden Entertainment Gross Margin % Related Terms
Madison Square Garden Entertainment Gross Margin % 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 Entertainment Gross Margin % Chart
MSGE vs CNK, BATRA, MANU: Gross Margin % Comparison
For the Entertainment subindustry, Madison Square Garden Entertainment's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Entertainment Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Madison Square Garden Entertainment's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Madison Square Garden Entertainment's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Madison Square Garden Entertainment (MSGE) has a Gross Margin % of 40.39% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Madison Square Garden Entertainment and its competitors. This is near median its historical median of 38.42. According to the industry distribution chart, Madison Square Garden Entertainment ranks #392 out of 953 companies in the Media - Diversified industry, placing it in the top 41.1%.
Is Madison Square Garden Entertainment's Gross Margin % too high?
Madison Square Garden Entertainment's current Gross Margin % of 40.39% is near median its 10-year median of 38.42. The Media - Diversified industry median Gross Margin % is 38.90. Madison Square Garden Entertainment's value of 40.39% is 3.8% above this industry median. Based on the distribution chart, Madison Square Garden Entertainment ranks #392 out of 953 companies in the Media - Diversified industry, which is above the industry midpoint. Overall, Madison Square Garden Entertainment has a GF Scoreâ„¢ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Madison Square Garden Entertainment's Gross Margin % compare to CNK and BATRA?
According to the Media - Diversified industry distribution chart, Madison Square Garden Entertainment ranks #392 out of 953 companies for Gross Margin %. This puts Madison Square Garden Entertainment in the upper half of its industry. The industry median Gross Margin % is 38.90. Madison Square Garden Entertainment's value of 40.39% is 3.8% above this benchmark. While the company's 10-year median is 38.42 vs. the industry median of 38.90, Madison Square Garden Entertainment has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.90, based on 953 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Madison Square Garden Entertainment's current Gross Margin % of 40.39% is 3.8% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Madison Square Garden Entertainment and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Madison Square Garden Entertainment's current Gross Margin % is 40.39%, which is near median its own 10-year median of 38.42. 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 Entertainment stock overvalued right now?
Based on GuruFocus' analysis, Madison Square Garden Entertainment (MSGE) is currently considered Significantly Overvalued. The stock's GF Value™ is $43.10, compared to a current price of $76.51 — trading 77.5% above its estimated fair value. The current Gross Margin % is 40.39%, which is near median its 10-year median of 38.42 and 3.8% above the Media - Diversified industry median of 38.90. Madison Square Garden Entertainment's overall GF Score™ is 74/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Madison Square Garden Entertainment (MSGE), the current Gross Margin % is 40.39% as of Mar. 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 Entertainment (MSGE) Overvalued in 2026?
Based on GuruFocus' analysis, Madison Square Garden Entertainment stock appears to be overvalued.
The current stock price of $76.51 is trading 77.5% above its estimated GF Value™ of $43.10.
GuruFocus considers Madison Square Garden Entertainment to be Significantly Overvalued.
Key valuation signals for MSGE:
Gross Margin %: 40.39% (near median its 10-year median of 38.42)
GF Value™: $43.10 vs. price of $76.51 (77.5% above fair value)
Industry Position: 3.8% above the Media - Diversified median (#392 of 953)
No single metric tells the full story. See the MSGE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Madison Square Garden Entertainment Business Description
Madison Square Garden Entertainment Corp provides live entertainment, delivering unforgettable experiences while forging deep connections with diverse and passionate audiences. The company's portfolio includes a collection of world-renowned venues - New York's Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall, and Beacon Theatre; and The Chicago Theatre - that showcase a broad array of sporting events, concerts, family shows, and special events for millions of guests annually. In addition, the company features the original production, the Christmas Spectacular Starring the Radio City Rockettes, which has been a holiday tradition for 89 years.
74GF Score
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