TKO TKO Group Holdings
$174.75
▼ 0.7%Updated Oct 16, 2:25 PM ET
Report Card
TKO at a glance — five pillars scored 0–100 from real filed financials.
How the 0–100 rating is calculatedOverall: Weak · 23/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
Price — Past Year
▲ Up 13.0% in the year to Jul 6, 2026
Key Metrics
Market Cap
$37.16B
P/E
146.87x
Forward P/E (est.)
158.27x
ROE
6.0%
Revenue Growth
6.3%
EPS Growth
-7.2%
Profit Margin
5.7%
FCF Yield
1.5%
Debt / Equity
1.07x
ROIC
8.0%
Interest Coverage
4.12x
Current Ratio
1.28x
Dividend Yield
1.5%
Implied Growth (rev. DCF)
—
Rating Score
23/100
Business Overview
TKO Group Holdings (TKO) is a large-cap company in the Movies & Entertainment industry, part of the Communication Services sector of the S&P 500, with a market value around $37.16B.
In its latest reported year it generated about $4.74B in revenue and $195.40M in net profit.
Our model rates TKO Weak (23/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Economic Moat
Evidence of durable competitive advantage in the filed financials (5 years of history).
Profit margins and economic moats, explainedThe numbers don't show a durable competitive advantage — margins, growth, or returns on capital have been unstable or thin. Great returns are still possible; they just aren't protected.
10.0% average over the last 3 years
±17.3 pts around 23.1% across 5 years
grew in 3 of the last 4 year-over-year periods
positive in 5 of 5 years
8.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical Analysis (Educational)
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what TKO's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. TKO trades near $174.75, below its 50-day average ($195.58) and 200-day average ($198.03). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 36 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. TKO's is $8.74 (~5.0% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. In the month to Jul 6, 2026, TKO found buyers near $192.64 (support) and sellers near $218.85 (resistance); its 52-week range then was $152.29–$226.94. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.9× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. The indicators were last computed on Jul 6, 2026; the price is current.
Revenue Growth
4Y CAGR
46.4%
Revenue moved from $1.03B in 2021 to $4.74B in 2025, a 46.4% compound annual growth rate. The most recent year grew a steady 6.3% year over year. Slower, mature growth is common for established businesses.
Profitability
Gross Margin
59.0%
Operating Margin
17.6%
Net Margin
4.1%
ROE
6.0%
TKO Group Holdings keeps about 5.7% of each sales dollar as net profit, with a 59.0% gross margin and 17.6% operating margin. Return on equity is 6.0% and return on invested capital about 8.0%. Margins are moderate — typical of a competitive but profitable business.
Debt Analysis
Total Debt
$4.63B
Net Debt
$4.04B
Net Debt / EBITDA
4.83x
Debt / Equity
1.07x
Leverage: debt-to-equity is 1.1x, and operating profit covers interest about 4.1x, with a current ratio of 1.3x. That is a moderate, manageable debt load for most businesses. It carries roughly $4.63B of total debt against $592.49M of cash.
Cash Flow Analysis
Operating CF
$1.29B
Free Cash Flow
$1.29B
FCF Margin
27.2%
In the latest year TKO Group Holdings produced about $1.29B of operating cash flow and $1.29B of free cash flow after capital spending. That is a free-cash-flow yield of about 1.5% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Valuation Analysis
P/E
146.87x
P/S
8.12x
P/B
9.53x
EV / EBITDA
—
TKO trades at 146.9x trailing earnings (about 158.3x on estimated forward earnings), 8.1x sales, and 9.5x book value. That is a rich multiple that prices in a lot of future growth.
Metrics vs. Sector Range
Where TKO sits versus the Communication Services companies we cover.
Bands show the middle half (25th–75th percentile) of the 44 Communication Services companies in our coverage that have fundamentals data — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
Sector Peer Comparison
How TKO stacks up against its Communication Services peers — valuation, profitability, and growth versus the sector median.
Among the 44 rated Communication Services companies we cover, TKO ranks #40 by our overall rating. It trades at a premium versus the sector on earnings (146.9x P/E vs. 17.4x median) with a lower return on equity (6.0% vs. 14.9%) and faster revenue growth (6.3% vs. 5.3%).
P/E vs sector
146.9x
median 17.4x
ROE vs sector
6.0%
median 14.9%
Growth vs sector
6.3%
median 5.3%
Sector rank
#40
of 44 rated
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Communication Services companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 44 rated companies among the 95 Communication Services stocks we cover. Educational, not a recommendation.
5-Year Projection Model
Project revenue → earnings → price. Edit the assumptions to build your own case.
What drives this projection, and its limits2030 scenario price range (Base Case)
$104.90 – $175.23
vs. $174.75 today · implied CAGR -10% – 0%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $5.02B | $5.32B | $5.64B | $5.98B | $6.34B |
| Net income | $200.77M | $212.82M | $225.59M | $239.12M | $253.47M |
| EPS | $0.94 | $1.00 | $1.06 | $1.12 | $1.19 |
| Share price (low) | $83.09 | $88.07 | $93.36 | $98.96 | $104.90 |
| Share price (high) | $138.79 | $147.12 | $155.95 | $165.31 | $175.23 |
| CAGR (low–high) | -52% / -21% | -29% / -8% | -19% / -4% | -13% / -1% | -10% / 0% |
Educational scenario model, not a forecast or investment advice. It starts from the latest annual revenue in SEC filings. By default, growth is trailing revenue growth (held between 3% and 45% a year), the net margin is the latest one (held between 3% and 50%, so a loss-making company is modeled with a small profit), and the Base case P/E runs from 60% to 100% of today's. Carrying recent growth forward five years can miss badly in either direction. Outputs are only as good as the assumptions.
Bull Case
The case for TKO:
- As an established S&P 500 member in Communication Services, it brings scale and a long operating history.
Bear Case
The case against TKO:
- A rich 146.9x earnings multiple prices in a lot of growth.
- Our model's overall read is Weak (23/100).
Key Risks
Valuation risk — at 146.9x earnings, disappointing results could compress the multiple.
Balance-sheet risk — debt/equity of 1.1x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
Investment Thesis
On balance, the fundamentals screen weakly: TKO Group Holdings is a large-cap communication services business growing at a mature pace, with modest profitability, and a heavier debt load to watch. It trades at 146.9x earnings, which our model scores Weak (23/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 27 Wall Street analysts covering TKO recommend (September 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more positive over the last three months (+4 pts of buy ratings).
Latest SEC Filings
TKO's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K
TKO — frequently asked questions
Is TKO a good stock to buy?
We don't give buy or sell advice. Our model rates TKO Group Holdings Weak (23/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is TKO's rating on The Stocks School?
TKO Group Holdings currently scores 23/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does TKO's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from TKO Group Holdings's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for TKO calculated?
It's a scenario model. It starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. It's a tool for thinking, not a prediction.
Is this TKO analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell TKO. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.