Is TKO Group Holdings, Inc. (TKO) overvalued?
On Equity Rank's model estimate, TKO trades 48% above its fair value. TKO Group Holdings, Inc. (TKO) last closed at $191.00; the multi-method model fair value is $128.68.
| Price | Model fair value | Price vs model |
|---|---|---|
| $191.00 | $128.68 | 48% above |
What the answer rests on
- 0 of 10 valuation methods put TKO's value above its price and 10 put it below, so the methods mostly agree.
- To justify today's price, TKO's free cash flow would need to grow about 9.3% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 33.3% a year.
- TKO trades at 67.7 times its last year's earnings, against a median of 31.2 for 13 profitable Streaming companies.
- Over the past year the price sat below the model fair value on 6% of trading days. The gap ranged from 19% below to 47% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind TKO's fair value · What prices assume · Other companies