Is Liberty Media Corp. overvalued or undervalued?

As of 19 September 2025, Liberty Media Corp. has moved from a very expensive to an expensive valuation grade. The company appears to be overvalued based on its high P/E ratio of 1425, compared to its peer Live Nation Entertainment, which has a P/E of 34.31. Additionally, Liberty Media's EV to EBITDA stands at 54.83, significantly higher than the industry average, indicating a premium valuation relative to its earnings potential.
In comparison to its peers, Liberty Media Corp. also shows a stark contrast with DraftKings, which is classified as risky with a negative P/E ratio. The company's return over the past year of 32.25% outperformed the S&P 500's return of 16.64%, but its long-term performance over 10 years is notably lagging, with a return of 203.76% compared to the S&P 500's 240.36%. This suggests that while the stock has delivered strong short-term returns, its current valuation metrics indicate it may be overvalued in the context of its financial performance.