Is TKO Group Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, TKO Group Holdings, Inc. has moved from an expensive to a fair valuation grade. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 61, an EV to EBITDA of 27.89, and a PEG ratio of 0.11, indicating strong growth potential relative to its price. In comparison, CoStar Group, Inc. has a significantly higher P/E of 381.24, while Check Point Software Technologies Ltd. shows a more reasonable P/E of 53.34, suggesting TKO is competitively positioned within its industry.
Despite a recent one-week stock return of 1.19% compared to the S&P 500's 1.70%, TKO has outperformed the index over longer periods, with a year-to-date return of 33.19% versus 13.30% for the S&P 500. This performance reinforces the notion that TKO Group Holdings, Inc. is fairly valued given its growth prospects and competitive standing in the market.