(TKO) TKO Holdings - Overview
Sector: Communication Services | Industry: Entertainment | Exchange: NYSE (USA) | Market Cap: 14.356m USD | Total Return: 28% in 12m
Avg Turnover: 254M
Qual. Beats: -1
Rev. Trend: 88.3%
Qual. Beats: 0
Warnings
Altman Z'' 0.18 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
TKO Group Holdings, Inc. is a premium sports and entertainment firm formed through the merger of UFC and WWE. The company operates through three primary segments: UFC, WWE, and IMG, generating revenue via media rights distribution, live event ticketing, sponsorship deals, and global consumer product licensing. Its business model relies heavily on the flywheel effect, where live events drive media consumption, which in turn increases the value of sponsorship and merchandising assets.
The IMG segment provides specialized services in media rights management, digital services, and event production, while also managing a robust hospitality and travel business. As a dominant player in the combat sports and professional wrestling industries, TKO benefits from high consumer engagement and a shift toward live sports content as a primary driver for streaming platforms and traditional broadcasters. Examining the underlying valuation metrics on ValueRay can provide further clarity on the companys long-term growth trajectory.
Headquartered in New York, TKO operates as a subsidiary of WME Group, Inc. The company maintains a diversified portfolio that includes video game merchandising, trading cards, and digital goods, leveraging the intellectual property of its two core athletic brands to secure multi-year broadcast agreements and global site fees.
- Media rights renewals for UFC and WWE drive long-term cash flow growth
- Live event expansion and site fees increase high-margin global revenue streams
- Integration of UFC and WWE operations captures significant corporate cost synergies
- Sponsorship and advertising growth leverages combined global combat sports audience reach
- Macroeconomic shifts in consumer discretionary spending impact ticket and merchandise sales
| Net Income: 226.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 6.04 > 1.0 |
| NWC/Revenue: 12.34% < 20% (prev 6.46%; Δ 5.88% < -1%) |
| CFO/TA 0.11 > 3% & CFO 1.82b > Net Income 226.3m |
| Net Debt (3.56b) to EBITDA (1.46b): 2.44 < 3 |
| Current Ratio: 1.28 > 1.5 & < 3 |
| Outstanding Shares: last quarter (194.6m) vs 12m ago 7.22% < -2% |
| Gross Margin: 51.53% > 18% (prev 0.42%; Δ 5.11k% > 0.5%) |
| Asset Turnover: 32.63% > 50% (prev 30.95%; Δ 1.69% > 0%) |
| Interest Coverage Ratio: 9.52 > 6 (EBITDA TTM 1.46b / Interest Expense TTM 97.4m) |
| A: 0.04 (Total Current Assets 2.82b - Total Current Liabilities 2.19b) / Total Assets 16.0b |
| B: -0.09 (Retained Earnings -1.38b / Total Assets 16.0b) |
| C: 0.06 (EBIT TTM 926.7m / Avg Total Assets 15.5b) |
| D: -0.19 (Book Value of Equity -1.41b / Total Liabilities 7.50b) |
| Altman-Z'' = 0.18 = B |
| DSRI: 1.37 (Receivables 833.4m/557.5m, Revenue 5.06b/4.64b) |
| GMI: 0.81 (GM 51.53% / 41.75%) |
| AQI: 0.91 (AQ_t 0.77 / AQ_t-1 0.84) |
| SGI: 1.09 (Revenue 5.06b / 4.64b) |
| TATA: -0.10 (NI 226.3m - CFO 1.82b) / TA 16.0b) |
| Beneish M = -2.98 (Cap -4..+1) = A |
As of May 29, 2026, the stock is trading at USD 200.54 with a total of 1,674,249 shares traded.
Over the past week, the price has changed by +3.22%,
over one month by +8.65%,
over three months by -10.06% and
over the past year by +28.04%.
TKO Holdings has received a consensus analysts rating of 4.53. Therefore, it is recommended to buy TKO.
- StrongBuy: 13
- Buy: 3
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 234.4 | 16.9% |
P/E Trailing = 71.4552
P/E Forward = 48.7805
P/S = 2.8354
P/B = 4.2525
P/EG = 1.3532
Revenue TTM = 5.06b USD
EBIT TTM = 926.7m USD
EBITDA TTM = 1.46b USD
Long Term Debt = 4.59b USD (from longTermDebt, last quarter)
Short Term Debt = 91.2m USD (from shortTermDebt, last quarter)
Debt = 5.29b USD (from shortLongTermDebtTotal, last quarter) + Leases 325.0m
Net Debt = 3.56b USD (calculated: Debt 5.29b - CCE 1.73b)
Enterprise Value = 17.9b USD (14.4b + Debt 5.29b - CCE 1.73b)
Interest Coverage Ratio = 9.52 (Ebit TTM 926.7m / Interest Expense TTM 97.4m)
EV/FCF = 10.24x (Enterprise Value 17.9b / FCF TTM 1.75b)
FCF Yield = 9.76% (FCF TTM 1.75b / Enterprise Value 17.9b)
FCF Margin = 34.56% (FCF TTM 1.75b / Revenue TTM 5.06b)
Net Margin = 4.47% (Net Income TTM 226.3m / Revenue TTM 5.06b)
Gross Margin = 51.53% ((Revenue TTM 5.06b - Cost of Revenue TTM 2.45b) / Revenue TTM)
Gross Margin QoQ = 54.01% (prev 44.56%)
Tobins Q-Ratio = 1.12 (Enterprise Value 17.9b / Total Assets 16.0b)
Interest Expense / Debt = 1.84% (Interest Expense 97.4m / Debt 5.29b)
Taxrate = 11.97% (34.0m / 283.8m)
NOPAT = 815.7m (EBIT 926.7m * (1 - 11.97%))
Current Ratio = 1.28 (Total Current Assets 2.82b / Total Current Liabilities 2.19b)
Debt / Equity = 1.57 (Debt 5.29b / totalStockholderEquity, last quarter 3.38b)
Debt / EBITDA = 2.44 (Net Debt 3.56b / EBITDA 1.46b)
Debt / FCF = 2.04 (Net Debt 3.56b / FCF TTM 1.75b)
Total Stockholder Equity = 3.80b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.46% (Net Income 226.3m / Total Assets 16.0b)
RoE = 4.37% (Net Income TTM 226.3m / Total Stockholder Equity 5.18b)
RoCE = 9.48% (EBIT 926.7m / Capital Employed (Equity 5.18b + L.T.Debt 4.59b))
RoIC = 5.91% (NOPAT 815.7m / Invested Capital 13.8b)
WACC = 5.56% (E(14.4b)/V(19.6b) * Re(7.01%) + D(5.29b)/V(19.6b) * Rd(1.84%) * (1-Tc(0.12)))
Discount Rate = 7.01% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 64.44 | Cagr: 46.26%
[DCF] Terminal Value 77.97% ; FCFF base≈1.34b ; Y1≈1.54b ; Y5≈2.27b
[DCF] Fair Price = 407.2 (EV 34.1b - Net Debt 3.56b = Equity 30.5b / Shares 75.0m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.90 | # QB: -1
Revenue Correlation: 88.27 | Revenue CAGR: 69.21% | SUE: 0.02 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.43 | Chg30d=-19.43% | Revisions=-60% | Analysts=11
EPS next Quarter (2026-09-30): EPS=1.18 | Chg30d=-19.44% | Revisions=-20% | Analysts=11
EPS current Year (2026-12-31): EPS=4.51 | Chg30d=-18.94% | Revisions=-17% | GrowthEPS=+99.4% | GrowthRev=+21.7%
EPS next Year (2027-12-31): EPS=4.82 | Chg30d=-24.09% | Revisions=-27% | GrowthEPS=+6.9% | GrowthRev=+0.9%
[Analyst] Revisions Ratio: -60%