Stock analysis · Bull Rankings model

TKO analysis

TKO Group Holdings, Inc.Entertainment. Scored on the same transparent model behind the daily rankings.

Streaming & Entertainment
TKO
TKO Group Holdings, Inc. · Entertainment
FCF$1.7bC+
Rev+5.1%C+
D/E0.59B
P/E66.5xC
PEG1.30B
58.6Score
$189.42$35.9B
1Y Target$232.21Analyst consensus · 19 analysts
5Y Target$339.98Compound horizon
10Y Target$504.34Long-dated conviction
FCF$1.7bTTM · 03/26
C+
FCF $1.7b — respectable but not differentiating · TTM computed from 4 most-recent quarters (TTM · 03/26).
Rev+5.1%TTM YoY
C+
Revenue +5.1% — steady but below market-beating range
D/E0.59
B
D/E 0.59 — near the Communication Services debt median (≈60th pctile)
P/E66.5x
C
P/E 66.5 — expensive vs Communication Services peers (≈90th pctile)
PEG1.30
B
PEG 1.30 — acceptable premium for growth

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 58.6
Quality0.57
Growth0.77
Value0.46
Why this score
  • Diluting shareholders
  • Cut its dividend
Entry · Margin of safety
52-week rangeMid-range
17% off the 12-month high
vs DCF fair value20% belowest. fair value ~$237
What the price assumes: free cash flow compounding at ~4% a year for the next decade — vs the ~15% a year our model projects from current growth and analyst estimates.
Quality signals · context only
ROIC9.8% · Breturn on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Entertainment · market cap $35.9b. 17% off the 52-week high of $226.94. 19 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $232.21 (implying +23% upside).
Moat
Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong.
Risk
Trailing P/E 66.5x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Net margin 4.3% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first. ROE 7% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.
Horizon
1-3 yr $232.21 (19-analyst consensus) — fundamentals + valuation re-rating. 5 yr $339.98 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $504.34 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

TKO vs the Top Picks average

PillarTKOBook avgDiff
Quality0.570.83-0.26
Growth0.770.92-0.15
Value0.460.75-0.29

Averaged across the 30 names in today's Top Picks (mean score 82.4). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
+12.7 over 37 daily scores
From 45.9 (Jun 22) → 58.6 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
10
Position size
$1,894
3.8% of portfolio
Stop price
$142.06
25% below $189.42
$ at risk if stopped
$473.55
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

TKO Group Holdings, Inc. (TKO): score, valuation & FAQ

TKO Group Holdings, Inc. (TKO) is a Entertainment company that scores 58.6 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

On valuation, TKO sits about 20% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 4% annual free-cash-flow growth over the next decade.

Is TKO a good stock to buy?

Bull Rankings scores TKO 58.6 out of 100 on its quality-growth model, which is a middling reading. A score is a quantitative screen of TKO Group Holdings, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does TKO score 58.6 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). TKO grades middle-of-pack across the strip. Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is TKO overvalued or undervalued?

Based on $189.42, TKO sits about 20% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 4% annual free-cash-flow growth over the next decade. It trades at a 66.5x× P/E (graded C). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in TKO?

Trailing P/E 66.5x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Net margin 4.3% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first. ROE 7% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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