TKO Group Holdings, Inc.

Valuation Analysis

About the Company

TKO Group Holdings, Inc. operates as a sports and entertainment company. The company operates through three segments: UFC, WWE and IMG. The UFC segment distributes programming content; ticket sales and site fees associated with the business's global live events; partnerships and marketing; and consumer products licensing agreements of UFC-branded products. The WWE segment consists of media rights fees associated with the distribution of its programming content; ticket sales and site fees associated with the business's global live events; partnerships and marketing; and consumer products licensing agreements of WWE-branded products. The IMG segment specializing in media rights management and sales, multi-channel content production and distribution, brand partnerships, strategic consulting,

TKO Group Holdings, Inc. Stock at a Glance

TKO Group Holdings, Inc. (TKO) is currently trading at $203.36 with a market capitalization of $38.9B. The trailing P/E ratio stands at 75.88x, with a forward P/E of 43.62x. The 52-week range spans from $152.29 to $226.94; the current price is 10.4% below the yearly high. Year-over-year revenue growth stands at +25.9%. The net profit margin stands at 4.47%.

💰 Dividend

TKO Group Holdings, Inc. pays an annual dividend of $3.11 per share, representing a yield of 1.53%. The payout ratio stands at 100.37%. The elevated payout ratio reflects a mature dividend policy.

📊 Analyst Rating

18 analysts rate TKO Group Holdings, Inc. (TKO) on consensus: Buy. The average price target is $234.39, implying +15.26% from the current price. Analyst price targets range from $185.00 to $275.00.

TKO Group Holdings, Inc.: The Investment Case in Detail

TKO Group Holdings, Inc. (TKO) operates in the Communication Services — specifically Entertainment — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Top-line momentum is unusually strong with revenue expanding 25.9% year-over-year, a pace that puts the company well above the market average and signals genuine demand traction rather than mere cyclical tailwind. The combination of a 59.12% gross margin and 21.22% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat. Wall Street consensus sits at Buy with an average price target implying roughly 15.26% upside from current levels — analyst sentiment is firmly constructive.

The Bear Case

With a net margin of just 4.47%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. Short interest sits at 13.99% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

The PEG ratio at 1.44 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric.

What to Watch Next

• The forward P/E of 43.62x is meaningfully below the trailing 75.88x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (13.99%).

Trading Data

💵 Dividend Info

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