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    TKO Group Holdings (TKO) After The Buyback And Earnings Hype Looks Undervalued

    Simply Wall St·07/19/2026 03:29:15
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    Upcoming earnings and buyback program put TKO Group Holdings (TKO) in focus

    TKO Group Holdings (TKO) heads into its August 3 fiscal 2026 Q2 earnings release with investor attention on forecasts for a 47% profit per share increase and an $800 million accelerated share repurchase that was recently completed.

    See our latest analysis for TKO Group Holdings.

    At a share price of $185.13, TKO Group Holdings has seen its short term momentum cool, with a 30 day share price return of negative 6.87%. However, a 1 year total shareholder return of 10.08% and a 5 year total shareholder return of 306.18% indicate that longer term holders have still seen substantial gains. This helps explain why the completion of the $800 million buyback and expectations for higher profits are now in focus for sentiment.

    If TKO Group Holdings has your attention around earnings and buybacks, it can also be useful to see what else is moving and compare against 18 top founder-led companies

    After a recent pullback and a completed $800 million buyback, TKO Group Holdings sits at a crossroads. Does the current setup still offer an attractive risk reward for new buyers, or is it mainly compelling for existing holders?

    Most Popular Narrative: 21% Undervalued

    At a last close of $185.13 versus a narrative fair value of $234.39, the current gap for TKO Group Holdings reflects a valuation built on ambitious long term media and event assumptions.

    Embedded step ups in long-term media rights for UFC with Paramount and WWE with ESPN and Netflix, alongside annual escalators and broader distribution, are set to structurally lift high-margin contractual revenue and expand EBITDA margins and earnings visibility from 2026 onward.

    Read the complete narrative.

    Want to see what explains that higher fair value for TKO Group Holdings? The narrative focuses on multi year revenue growth, margin expansion and a re rated earnings multiple. The exact mix of assumptions might surprise you.

    Result: Fair Value of $234.39 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, the TKO Group Holdings narrative still depends on media partners sustaining fee commitments, and on site fee support from governments and municipalities remaining intact.

    Find out about the key risks to this TKO Group Holdings narrative.

    Another View on TKO Group Holdings’ Valuation

    While the TKO Group Holdings narrative fair value of $234.39 points to an undervalued stock, the current P/E of 60.5x tells a more cautious story. It is above the US Entertainment industry at 21.1x and almost double the 32.8x fair ratio, which raises questions about how much good news is already in the price.

    See what the numbers say about this price — find out in our valuation breakdown.

    NYSE:TKO P/E Ratio as at Jul 2026
    NYSE:TKO P/E Ratio as at Jul 2026

    Next Steps

    With TKO Group Holdings presenting both risks and rewards in this article, it makes sense to move quickly and pressure test the data yourself using the 3 key rewards and 2 important warning signs.

    Looking for more investment ideas beyond TKO Group Holdings?

    If TKO Group Holdings has sharpened your focus, do not stop here. Broader ideas can help you compare opportunities and stress test your thinking across sectors.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.