How Much Is LEGO Stock? What Investors Need to Know

For publicly traded companies, financial worth is reflected in their stock price, which is readily observable and indicates market sentiment. This transparency provides insight into a company’s financial health and market position.

The Private Nature of The LEGO Group

Many individuals are interested in The LEGO Group’s stock. However, it is a privately held company, meaning its shares are not traded on public stock exchanges like the New York Stock Exchange (NYSE) or NASDAQ. This private status directly impacts how its financial worth is perceived by the general public.

The ownership structure of The LEGO Group is rooted in its founding family. It is primarily owned by KIRKBI A/S, the holding and investment company of the Kirk Kristiansen family, who founded the company in 1932. KIRKBI A/S holds a 75% stake in The LEGO Group. The remaining 25% is owned by the LEGO Foundation, a charitable organization focused on learning through play. This family and foundation ownership structure ensures that control over the company’s strategic direction and operations remains within a concentrated group, rather than being dispersed among a multitude of public shareholders.

As a private entity, there is no public stock price per share, and investors cannot purchase shares directly on any exchange. There is no stock ticker symbol associated with the company. This private status allows the company to operate without the quarterly financial reporting and public disclosures required of publicly listed entities, offering greater flexibility in its long-term planning and decision-making. The absence of a public market price means external valuation requires different methodologies than those used for public companies.

Understanding Valuation for Private Companies

Even without a public stock price, private companies like The LEGO Group possess economic value. This valuation is typically performed for purposes such as mergers, acquisitions, internal financial reporting, or tax and legal compliance. Valuing private entities involves assessing internal and external factors to estimate their worth.

Common valuation approaches for private companies include the Discounted Cash Flow (DCF) method, Comparable Company Analysis (CCA), and Asset-Based Valuation. The DCF method estimates a company’s value by projecting future cash flows and discounting them to their present value using a discount rate. This approach considers the time value of money.

Comparable Company Analysis (CCA) involves comparing the private company to similar publicly traded companies or recent private transactions. Valuation multiples, such as price-to-earnings (P/E) ratios or enterprise value to EBITDA (EV/EBITDA), are derived from these comparable entities and applied to the private company’s financial metrics.

Asset-Based Valuation determines a company’s value based on its net asset value, calculated by subtracting total liabilities from the fair market value of its assets. This method is useful for asset-heavy businesses or new companies without a long financial track record.

These valuation processes for private companies often require adjustments to account for differences such as limited transparency, illiquidity of shares, and concentrated ownership.

Investment Alternatives in the Toy and Entertainment Industry

Since direct investment in The LEGO Group’s stock is not possible, individuals interested in the toy, game, or broader entertainment sectors can consider publicly traded companies in similar industries. These alternatives offer a means to participate in the industry’s growth and financial performance.

Several established publicly traded companies are prominent players in the toy and entertainment markets. Mattel, Inc. (NASDAQ: MAT) is a major toy manufacturer known for brands such as Barbie, Hot Wheels, and Fisher-Price. Hasbro, Inc. (NASDAQ: HAS) produces toys and games, including well-known brands like Monopoly, Nerf, and Play-Doh, and also has a presence in entertainment content. These companies offer exposure to the traditional toy market through their extensive product lines and global distribution.

Beyond traditional toys, the entertainment industry provides investment avenues. Companies like The Walt Disney Company (NYSE: DIS) have extensive licensing agreements for intellectual properties that translate into toy sales, alongside their core businesses in media, theme parks, and consumer products. The video game sector also presents opportunities, with publicly traded companies such as Electronic Arts Inc. (NASDAQ: EA) and Take-Two Interactive Software, Inc. (NASDAQ: TTWO) developing and publishing game franchises. Investing in these companies allows individuals to engage with the broader consumer discretionary sector, which includes toys, games, and entertainment, even without direct access to The LEGO Group’s private stock.