Is TKO Group Holdings, Inc. overvalued or undervalued?

As of 8 May 2025, TKO Group Holdings, Inc. has moved from an attractive to a fair valuation grade. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 61, an EV to EBITDA of 27.89, and a PEG ratio of 0.11, which suggests that while the company has growth potential, its current price may not fully reflect its earnings capabilities compared to its peers.
In comparison to its peers, TKO Group Holdings, Inc. has a P/E ratio of 62.19, while VeriSign, Inc. stands at 33.71 and XP, Inc. at 12.44, indicating that TKO is priced at a premium relative to these companies. Additionally, the EV to EBITDA ratio for TKO is slightly higher than that of VeriSign, which is at 25.13. Notably, TKO has outperformed the S&P 500 over the past year with a return of 64.22% compared to the index's 10.26%, reinforcing its strong market performance despite the fair valuation.