Is TKO Group Holdings, Inc. overvalued or undervalued?

As of 7 July 2025, TKO Group Holdings, Inc. has moved from an attractive to a fair valuation grade. The company appears to be overvalued based on several key metrics, including a P/E ratio of 61, a Price to Book Value of 7.89, and an EV to EBITDA ratio of 40.29. In comparison, peers such as Check Point Software Technologies Ltd. have a P/E of 53.34 and an EV to EBITDA of 45.82, while VeriSign, Inc. shows a more favorable P/E of 33.05.
Despite the overvaluation, TKO Group has demonstrated strong performance, with a year-to-date return of 42.71%, significantly outpacing the S&P 500's 12.22% during the same period. This performance indicates that while the stock may be overvalued, it has still delivered substantial returns to investors.