TKO Group Holdings, Inc. (TKO)
Communication Services · Movies & Entertainment · US stock · S&P 500 component
$177.72
▼ -0.22 (0.12%)
Fair valueUndervalued
$256 +43.8% to fair value
$128fair band $217–$310$383
Day's range
$175.53 – $180.49
52-week range
$170.92 – $226.94
Red flags⚠ Heavy dilution⚠ Heavy dilution⚠ Heavy dilution⚠ Heavy dilution⚠ Heavy dilution
About TKO Group Holdings, Inc.
TKO Group Holdings is a live sports and entertainment company that owns UFC, the mixed martial arts organisation, and WWE, the professional wrestling business. It also owns Professional Bull Riders. Its customers are broadcasters and streaming platforms that pay for media rights, sponsors, and fans who attend events or purchase licensed merchandise.
Revenue comes from media rights deals with broadcasters and streaming services, ticket sales, sponsorships, and consumer products and licensing. The last twelve months brought in $5.3 billion, and growth over the last three years was 21.0% a year. The operating margin is 18.8%, and the business earns a profit of 12% on the capital invested in it. It carries net debt of 2.6 times EBITDA. A dividend is paid, with a yield of 1.8%. On the site's X-Ray Score it receives 52 out of 100.
Price chart
52-wk range $170.92 – $226.94Volume 730,073Daily, split-adjusted
Vitals
Market cap$13.5B
52-week range$170.92 – $226.94
Volume (last day)730,073
P/E (TTM)128.4
EBIT / EV yield5.7%
Free-cash-flow yield–
Dividend yield1.8%
Revenue (TTM)$5.3B
Net income (TTM)$230M
Operating margin18.8%
Return on capital11.8%
Debt incl. leases$4.6B
Cash & securities$592M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$256middle half of models $221 – $291
Undervalued
+43.8% to fair value
Average of the 13 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $178
Undervalued < $217Fair $217 – $310Overvalued > $310
P/E multiple
$215
P/B multiple
$230
P/S multiple
$239
EV/EBITDA multiple
$291
EV/EBIT multiple · not used
$388
EV/revenue multiple
$221
10-year DCF, EBITDA exit · not used
$382
5-year DCF, EBITDA exit
$347
10-year DCF, revenue exit
$343
5-year DCF, revenue exit
$301
10-year DCF, growth exit
$273
5-year DCF, growth exit
$225
Dividend discount, stable
$198
Dividend discount, multi-stage
$277
Earnings power value
$163
Growth the price implies
10.5%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, but the price is low
Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Communication Services peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Strong
76/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield5.7%
Fair value vs price1.4×
Growth
Weak
46/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)21.0%
Growth consistency80%
Profitability
Fair
54/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital11.8%
Operating margin18.8%
Financial health
Weak
38/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score6 / 9
Net debt / EBITDA2.6×
Interest cover4.1×
Dividends
Weak
27/100
Dividend is modest or less certain than peers.
See the numbers →
Dividend yield1.8%
Quarterly results: last 6 quarters
+3.8%
Mar '25
+9.7%
Jun '25
-27.3%
Sep '25
+11.9%
Dec '25
+25.9%
Mar '26
+18.2%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $1.5B, diluted EPS $1.34.
Compare with peers
NFLX Netflix Inc58 DIS Walt Disney Co56 LYV Live Nation Entertainm...41Other Movies & Entertainment companies by X-Ray Score.
SWOT analysis: TKO Group Holdings, Inc.
Strengthsinside the company
- Revenue has grown 21.0% a year over three years (median 12.6% for industry peers).
Weaknessesinside the company
- Return on invested capital of 11.8% is well below the 31.5% median of industry peers.
- Altman Z-score of 0.9 is in the zone linked with financial distress in past studies.
Opportunitiesvaluation and setting
- The price is 44% below our fair value estimate, with the gap larger than the margin we allow for error.
- Our Market Compass rates the backdrop for Communication Services as favourable.
Threatsvaluation and setting
- Revenue growth slowed to -3.1% last year from 21.0% a year over three years.
- Trades at 58.7x earnings, 156% above the 22.9x median of industry peers, so the price already assumes better results.
- Our checks raised: Heavy dilution; Heavy dilution.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare TKO with peers and sector
Medians of 3 Movies & Entertainment peers and of 17 Communication Services stocks in our universe.
Largest peers (X-Ray Score): NFLX 58, DIS 56, LYV 41.
| Metric | TKO | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 52 | 56 | 51 |
| Valuation | 76 | 46 | 50 |
| Growth | 46 | 55 | 55 |
| Profitability | 54 | 57 | 52 |
| Financial health | 38 | 64 | 52 |
| Dividends | 27 | – | 48 |
Sector leaders: highest X-Ray Score in Communication Services
TKO ranks #9 of 18 in Communication Services and #3 of 4 in Movies & Entertainment by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for TKO
Each factor is rated by where TKO stands among the 18 Communication Services stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 4 Good · 9 Average · 5 Bad of 18
Growth: 1 · 0 · 1
Profitability: 0 · 2 · 2
Financial strength: 0 · 4 · 0
Valuation: 0 · 3 · 1
Cash flow: 3 · 0 · 0
Efficiency: 0 · 0 · 1
| Factor | TKO | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +21.0% | Good beats 86% | +5.6% | – | – |
| Revenue growth, last year | −3.1% | Bad beats 8% | +7.7% | +36.0% | ▼ Worse |
| Profitability | |||||
| Operating margin | 18.8% | Average beats 47% | 19.3% | 17.6% | ≈ In line |
| Net margin | 4.3% | Bad beats 19% | 10.6% | 5.4% | ▼ Worse |
| Return on invested capital | 11.8% | Average beats 53% | 10.4% | – | – |
| Return on equity | 6.8% | Bad beats 14% | 17.9% | 4.3% | ▲ Better |
| Financial strength | |||||
| Net debt / EBITDA | 2.6x | Average beats 34% | 1.4x | 3.8x | ▲ Better |
| Interest cover | 4.1x | Average beats 34% | 11.8x | 3.8x | ≈ In line |
| Current ratio | 1.28 | Average beats 58% | 1.10 | 1.14 | ▲ Better |
| Piotroski F-score | 6 / 9 | Average beats 44% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 58.7x | Bad beats 15% | 20.8x | 74.2x | ▲ Better |
| Price / book | 4.0x | Average beats 42% | 2.8x | 6.0x | ▲ Better |
| Price / sales | 2.5x | Average beats 36% | 2.0x | 5.0x | ▲ Better |
| EV / EBITDA | 11.5x | Average beats 56% | 13.4x | 32.9x | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 33.9% | Good beats 84% | 15.7% | 14.8% | ▲ Better |
| Cash from operations / net income | 7.82 | Good beats 83% | 1.98 | 1.98 | ▲ Better |
| Accruals (lower is better) | −9.6% | Good beats 91% | −5.8% | – | – |
| Efficiency | |||||
| Days sales outstanding | 73 days | Bad beats 28% | 47 days | 40 days | ▼ Worse |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 3 Good · ● 8 Average · ● 1 BadCash quality
Earnings backed by cashGood
Risk models
Altman Z''Bad
Piotroski F-ScoreAverage
Growth
Revenue growth (3y)Good
Growth consistencyAverage
Balance sheet
Current ratioAverage
Net debt / EBITDAAverage
Interest coverAverage
Valuation
Fair value vs priceGood
EBIT / EV yieldAverage
Profitability
Return on invested capitalAverage
Operating marginAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 62/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $1.0B | $2.7B | $3.2B | $4.9B | $4.7B |
| Operating income | $391M | $533M | $376M | $31M | $835M |
| Net income | $274M | $0 | $176M | $6M | $546M |
| Operating cash flow | $441M | $395M | $266M | $586M | $1.3B |
| Operating margin | 37.9% | 19.9% | 11.7% | 0.6% | 17.6% |
| Free cash flow | – | – | – | – | – |
| Diluted EPS | – | – | $-0.43 | $0.02 | $2.26 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bearish
4 bullish · 4 neutral · 8 bearish
Weekly
Bearish
3 bullish · 1 neutral · 8 bearish
Monthly
Neutral
3 bullish · 1 neutral · 4 bearish
Moving averages (daily)
| SMA 10 | 175.9 | Bullish |
| EMA 10 | 177.0 | Bullish |
| SMA 20 | 177.3 | Bullish |
| EMA 20 | 178.5 | Bearish |
| SMA 50 | 185.1 | Bearish |
| EMA 50 | 182.7 | Bearish |
| SMA 100 | 188.8 | Bearish |
| EMA 100 | 186.3 | Bearish |
| SMA 200 | 192.8 | Bearish |
| EMA 200 | 187.5 | Bearish |
Oscillators (daily)
| RSI (14) | 46.59 | Neutral |
| MACD (12, 26) | -2.33 | Bearish |
| Momentum (12) | 0.71 | Bullish |
| Stochastic %K (14) | 54.66 | Neutral |
| Williams %R (14) | -45.34 | Neutral |
| CCI (20) | 21.73 | Neutral |
Pivot points (classic, last session)
S3 170.4 | S2 173.0 | S1 175.3 | Pivot 177.9 | R1 180.3 | R2 182.9 | R3 185.3 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
3.14 USD
Yield on today's price
1.77%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.7900 | |
| 0.7900 | |
| 0.7800 | |
| 0.7800 | |
| 0.7600 | |
| 0.3800 | |
| 0.3800 | |
| 3.8600 | |
| 0.1200 | |
| 0.1200 | |
| 0.1200 | |
| 0.1200 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold TKO
| ETF | Share of the fund |
|---|---|
| XLC Communication Services Select Sector S... | 1.53% |
| RPG Invesco S&P 500 Pure Growth | 1.46% |
| VOX Vanguard Communication Services | 0.83% |
| FCOM Fidelity MSCI Communication Services I... | 0.74% |
| COWG Pacer US Large Cap Cash Cows Growth Le... | 0.71% |
| DON WisdomTree U.S. MidCap Dividend | 0.43% |
| TMSL T. Rowe Price Small-Mid Cap | 0.31% |
| FTLS First Trust Long/Short Equity | 0.27% |
The eight funds with the largest weight in TKO among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
TKO SEC filings
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Shareholder vote results
8-KSEC EDGAR
Other events
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
DEF 14ASEC EDGAR
Proxy statement
8-KSEC EDGAR
Entered a material agreement; Other events
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.