* Note: Prices are in Million (M) USD.
Description:
TKO Group Holdings, Inc. is a sports and entertainment company. The company is headquartered in New York, New York.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $526 M
Debt : $2,733 M
EBITDA : $730 M
Net Debt (Debt - Cash): $2,207 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Communication Services
Industry: Entertainment
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 25.98
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $372 M
Average Revenue: $1,162 M
Revenue Converted To Free Cash FLow(%): 32%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 117.24%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $2,804 M
Revenue 4 Years Ago (2020-12-31): $891 M
Last 5 Years Average Revenue Growth: 43%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $172 M
Share Count 5 Years Ago (2020-12-31): $83 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $8.44
Trailing 12-Month Earnings Per Share (EPS): $4.31
Average Earnings Per Share (EPS): $6.38
Dividend Per Share (DPS): $0
Payout Ratio: 6%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 23%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $166
52-Week Low: $102
Threshold Price (15% Above 52-Week Low): $117
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $14,061 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 23 points to above TKO Group Holdings, Inc. (TKO) stock.
Last 2 Years Avg PE (Limited to last 2 years of EPS data) 40, Fair Value PE 15, Industry Based PE is 18 and Growth based PE is 21. Based on these all values average assigned is 23.50.
Value-Trades has assined P/E value 23.50. Since an average (Current Year EPS + Next Year EPS) earning per share is $6.375.
The fair value of TKO Group Holdings, Inc. (TKO) stock should be (23.50 x $6.375) = $149.81