The PE of The Boss

According to a recent New York Times article, Bruce Springsteen’s music catalog was sold for $550 million. According to Billboard, after deducting costs of production and distribution, about 20% of revenues, the master recording and publishing catalogs earn $17 million per year.

So a rough estimate of the Price / Earnings ratio for the Springsteen vault is 32x. 

If you’re paying more than this for a company, even in an inflationary period with low interest rates, you should probably make sure that the earning power and sustainability of that business is of The Boss quality.

NY Times article:

Billboard article:

https://www.billboard.com/pro/bruce-springsteen-sells-masters-publishing-sony/

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