TKOSports & entertainment media
TKO Group
Not investment advice. Kevin may own this stock. How we value stocks
By Kevin Amado
Updated
- Price
- $199.50
- Intrinsic value
- Intrinsic value from an AI estimate
- Analysts view
- Very bullish
- Discount category
- Pricey (AI estimate)
- Pick status
- Research only
- Next earnings
- Earnings Feb 24 · · estimated
- Market cap
- $38B
- Shares of Oct 30, 2026
- Yield at current rate
- 1.6%
- Current annual rate, at the price of Nov 12, 2026
- Dividend yield
- 1.6%
- Last 12 months, at the price of Nov 12, 2026
- P/E (trailing)
- 53.5
- Price of Nov 12, 2026
- EPS (trailing)
- $3.73
- 12 months to Sep 30, 2026
- 52-week range
- $170.14 – $226.94
- To Nov 12, 2026
- Beta
- 0.68
- Vs S&P 500, 5 years monthly, to Oct 30, 2026
- Average volume
- 1.1M
- 3 months, to Nov 12, 2026
Check the numbers:ExchangeGoogle FinanceYahoo FinanceSEC filings
In short
- Thesis
- The market prices TKO close to the AI estimate, and only Adjusted EBITDA that keeps rising in 2027 after the one-time gains of 2026, with debt funded buybacks under control, can keep it there.
- Gap
- Can close. The Q4 2026 report in February 2027 and the 2027 guidance show whether Adjusted EBITDA grows after the one-time events of 2026.
Company guidance: 2026 revenue of $5.790 billion to $5.830 billion; Adjusted EBITDA of $2.295 billion to $2.315 billion (, Q3 2026 results release (8-K))
Price history
About
TKO Group Holdings, Inc. (TKO) owns the UFC, WWE and IMG, which includes On Location, and Professional Bull Riders (PBR). It is based in New York. It earns revenue from media rights, live events and hospitality, partnerships and marketing, and consumer products. It has three segments: UFC, WWE and IMG, and a Corporate and Other group.
In Q3 2026, revenue was $1.360 billion, of which UFC gave $519.2 million, WWE $399.3 million and IMG $391.3 million. Adjusted EBITDA was $555.7 million. TKO is the managing member of TKO Operating Company, LLC (TKO OpCo), which holds the business. At September 30, 2026, TKO owned 38.5% of TKO OpCo.
Other members hold the rest as TKO OpCo units, each with one share of Class B common stock. Silver Lake controls TKO through its ownership of Endeavor. The Class A shares trade on the New York Stock Exchange in US dollars.
Thesis
The market prices TKO close to the AI estimate, and it must decide how much of the 2026 growth repeats. UFC revenue rose 60% in Q3 2026 to $519.2 million, mostly from the new media rights agreement with Skydance that began in January 2026, two more events and a record UFC 329. IMG Adjusted EBITDA rose to $115.9 million with FIFA World Cup 2026 hospitality at On Location. A part of this growth does not repeat in 2027.
TKO also borrows to return cash. It priced $1.0 billion of new senior secured notes on November 5, 2026, and it plans to buy back the rest of its $936.0 million authorization with debt and cash. UFC also faces antitrust suits, and one of them covers Paramount+ subscribers. For the price to stay close to the AI estimate, three things must be true.
Adjusted EBITDA for 2027 must stay above the guided $2.295 billion to $2.315 billion for 2026. The media rights agreements, which the company says lock in most revenue for five to seven years, must keep their price steps. Debt must stay in line with the growth of Adjusted EBITDA. The next tests are the Q4 2026 events, including those in the Middle East, and the Q4 2026 report with 2027 guidance in February 2027.
Valuation
AI estimate, checked by Kevin. How it is made
Show the method
The intrinsic value for TKO Group is an AI estimate from November 12, 2026. It is not an analyst's value. An AI research agent calculated it from the filings of TKO with the SEC. The method is a multiple of Adjusted EBITDA for 2027, less net debt and redeemable non-controlling interests, divided by the number of Class A shares plus the TKO OpCo units.
Adjusted EBITDA is the own measure of TKO. It is the profit of all of TKO OpCo, so the share count must include the units that other members hold. The multiples are assumptions that allow for interest, tax, capital spending and the long term of the media rights agreements. The Q3 2026 release (8-K, November 4, 2026) gives Adjusted EBITDA of $555.7 million for Q3 and $1,755.4 million for nine months, and 2026 guidance of Adjusted EBITDA of $2.295 billion to $2.315 billion and revenue of $5.790 billion to $5.830 billion.
It gives cash of $630.9 million and gross debt of $4.647 billion at September 30, 2026. The Form 10-Q for the quarter ended September 30, 2026 gives redeemable non-controlling interests of $34.4 million, 72,440,231 Class A shares and 116,158,615 Class B shares at October 30, 2026, and diluted weighted shares of 74.2 million for Q3, against basic shares of 73.1 million. TKO OpCo units, with an equal number of Class B shares, can be exchanged one for one for Class A shares, so the estimate counts them as shares. The count is 72.44 million plus 116.16 million plus 1.05 million for dilution, or 189.65 million.
TKO owned 38.5% of TKO OpCo at September 30, 2026. A count of Class A shares alone would give the holders of Class A shares all of the profit of TKO OpCo, and it would overstate the value of each share. The estimate leaves out the $1.0 billion of notes priced on November 5, 2026 and the planned repurchases, because buying shares near their value changes little. The net amount taken off is $4,050.5 million, which is $4,647.0 million of debt and $34.4 million of redeemable interests, less $630.9 million of cash.
The Adjusted EBITDA for 2027 and the multiples are assumptions. The low case assumes $2,300 million, about the same as 2026, because the one-time events do not repeat, at 13.0 times. It gives $136.30 per share. The base case assumes $2,550 million, which is about 11% above the middle of the 2026 guidance, because media rights fees step up, at 15.5 times.
It gives $187.05 per share. The high case assumes $2,800 million, because live events and partnerships grow fast, at 18.0 times. It gives $244.39 per share. The estimate assumes weights of 25%, 50% and 25%.
The weighted intrinsic value is $188.70 per share.
Checkpoints
- Q4 2026 · est.Due this quarterQ4 2026 events held as plannedTKO stages all live events, including those in the Middle East, and Adjusted EBITDA for 2026 lands in the guided range of $2.295 billion to $2.315 billion, and this passes; a cancelled event or a miss fails.
- Feb 24, 2027 · est.PendingQ4 2026 results and 2027 guidanceGuidance for 2027 Adjusted EBITDA is above the 2026 range, and this passes; a guide below it fails.
Recent events
- November 6, 2026TKO reported to the SEC that its indirect subsidiary TKO Worldwide Holdings, LLC priced an offering of $1.0 billion of Senior Secured Notes due 2031 on November 5, 2026.
- November 4, 2026TKO reported Q3 2026 results. Revenue was $1.360 billion, up 21%, and Adjusted EBITDA was $555.7 million, up 54%. Net income was $277.9 million. The company raised its 2026 guidance for the second time, to revenue of $5.790 billion to $5.830 billion and Adjusted EBITDA of $2.295 billion to $2.315 billion.
- November 4, 2026TKO said it intends to start more share repurchases. About $936.0 million remains of its $3 billion authorization, and it plans to use new debt and cash on hand. It bought back $85.5 million of Class A shares in Q3 2026 under a plan that ended on October 30, 2026.
Show 2 older eventsHide older events
- September 30, 2026TKO paid a quarterly dividend to holders of Class A common stock, from an aggregate distribution of about $150 million by TKO OpCo, or $0.79 per share.
- July 1, 2026TKO finished its accelerated share repurchase of $800 million, for 4,167,298 shares of Class A common stock. From May 14 to July 22, 2026, it also bought 1,022,434 shares for about $200.0 million.
Latest news and filings
- Last earnings
- November 4, 2026 (8-K on sec.gov)
- Next earnings
- Expected about February 24, 2027. The company has not confirmed the date.
- 8-KOther company newsFiled · Read it on sec.gov
- 10-QQuarterly report for the period ended Sep 30, 2026Filed · tko-20260930
- 8-KEarnings releaseFiled · Press release and exhibits
- 10-QQuarterly report for the period ended Jun 30, 2026Filed · tko-20260630
- 8-KEarnings releaseFiled · Press release and exhibits
- 8-KShareholder vote resultsFiled · Read it on sec.gov
- 8-KOther company newsFiled · Read it on sec.gov
- 10-QQuarterly report for the period ended Mar 31, 2026Filed · tko-20260331
- 8-KEarnings releaseFiled · Press release and exhibits
- 8-KNew material agreement and New debt or financial obligationFiled · Read it on sec.gov
Risks
- Part of the 2026 growth does not repeat. FIFA World Cup 2026 hospitality at On Location and the record UFC 329 lifted Q3 2026. Revenue for 2027 must grow from this higher base.
- Antitrust and legal cases can cost money. Plaintiffs in suits against Zuffa claim that UFC pay-per-view and Paramount+ prices are too high under the Sherman Act, and WWE has legal proceedings that follow the investigation of its former chief executive.
- Debt rises with buybacks. Gross debt was $4.647 billion at September 30, 2026, and the company priced $1.0 billion of new notes on November 5, 2026 and plans to use debt and cash for repurchases. Net interest expense was $201.1 million for nine months.
- A few media partners give a large share of revenue. UFC media rights, production and content revenue was $933.3 million for nine months, and WWE gave $897.2 million.
- Guidance assumes all live events happen as planned, including those in the Middle East. A cancelled event cuts revenue and profit.
- A controlling holder decides many matters. Silver Lake and its affiliates held about 61% of the voting securities after the take-private of Endeavor.
Balance sheet
At September 30, 2026, TKO had cash and cash equivalents of $630.9 million and gross debt of $4.647 billion, which is net debt of about $4.0 billion. Total debt, net of discounts and issuance costs, was $4,618.0 million, against $3,762.1 million at December 31, 2025. Almost all of it is the first lien term loan, due in November 2031. Free cash flow was $449.9 million in Q3 2026. Net interest expense was $201.1 million for nine months. TKO also has redeemable non-controlling interests of $34.4 million. On November 5, 2026, after the balance sheet date, a TKO subsidiary priced $1.0 billion of senior secured notes due 2031. In nine months of 2026, the company returned more than $1.6 billion to equity holders through share repurchases and dividends and related distributions.
Dividends
- Yield at the current rate
- 1.6% (current annual rate, at today’s price)
- Dividend yield
- 1.6% (last 12 months, at today’s price of $199.50)
- Paid per share
- $3.14 in the last 12 months (4 payments)
- Current annual rate
- $3.16 ($0.79 × 4 a year)
- Payout ratio
- 102% of the last fiscal year’s earnings (the year that ended December 31, 2025)
- Latest ex-dividend date
- September 15, 2026, $0.79 per share
Dividends per share by year
| 2016 | $0.48 | |
|---|---|---|
| 2017 | $0.48 | |
| 2018 | $0.48 | |
| 2019 | $0.48 | |
| 2020 | $0.48 | |
| 2021 | $0.48 | |
| 2022 | $0.48 | |
| 2023 | $0.24 | |
| 2024 | $0.00 | |
| 2025 | $2.30 |
From 2020 to 2025, the dividend grew by about 36.8% a year. From 2015 to 2025, the dividend grew by about 17.0% a year.
One-off payments far above the usual dividend are left out of these numbers.
Source: company filings and market data, read on November 13, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.
Questions about TKO Group
What does TKO Group do?
TKO Group Holdings, Inc. (TKO) owns the UFC, WWE and IMG, which includes On Location, and Professional Bull Riders (PBR). It is based in New York. Its market cap is $38B at the current price of $199.50.
When does TKO Group report earnings next?
This is an estimate: TKO Group may report on February 24, 2027. It last reported results on November 4, 2026.
Is TKO Group stock below its intrinsic value?
TKO Group stock is pricey. The source of the intrinsic value is: AI estimate. This is general information, not advice.
What changed recently at TKO Group?
The latest update is from November 6, 2026. TKO reported to the SEC that its indirect subsidiary TKO Worldwide Holdings, LLC priced an offering of $1.0 billion of Senior Secured Notes due 2031 on November 5, 2026.
What are the main risks for TKO Group?
Part of the 2026 growth does not repeat. Antitrust and legal cases can cost money. Debt rises with buybacks.
How much debt and cash does TKO Group have?
At September 30, 2026, TKO had cash and cash equivalents of $630.9 million and gross debt of $4.647 billion, which is net debt of about $4.0 billion. This is as of September 30, 2026.
Does TKO Group pay a dividend?
Yes. The current annual dividend of TKO Group is $3.16 per share. That is a dividend yield of 1.6% at the current price of $199.50. In the last 12 months, it paid $3.14 per share (1.6%). The latest ex-dividend date was September 15, 2026.
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