TKO Group HoldingsTKO -3.96%60 Operating Margin % is 21.20% as of Mar. 2026, which is 20% below its 10-year median of 26.44. GuruFocus rates TKO with a GF Score™ of 60/100 and a GF Value™ of $132.36 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,015 Media - Diversified companies, TKO Group Holdings ranks better than 90.05% on this metric.
TKO Group Holdings (NYSE:TKO) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
TKO Group Holdings Operating Margin % Related Terms
TKO Group Holdings Operating Margin % Historical Data
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The historical data trend for TKO Group Holdings's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TKO vs NWSA, WMG, ROKU: Operating Margin % Comparison
For the Entertainment subindustry, TKO Group Holdings's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
TKO Group Holdings Operating Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, TKO Group Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where TKO Group Holdings's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
TKO Group Holdings's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TKO Group Holdings (TKO) has a Operating Margin % of 21.20% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on TKO Group Holdings and its competitors. This is 20% below median its historical median of 26.44. Over the past decade, TKO Group Holdings' Operating Margin % has ranged from 0.63 to 47.75. According to the industry distribution chart, TKO Group Holdings ranks #101 out of 1015 companies in the Media - Diversified industry, placing it in the top 10%.
Is TKO Group Holdings' Operating Margin % too high?
TKO Group Holdings' current Operating Margin % of 21.20% is 20% below median its 10-year median of 26.44. Over the past 10 years, this metric has ranged from a low of 0.63 to a high of 47.75. The Media - Diversified industry median Operating Margin % is 2.42. TKO Group Holdings' value of 21.20% is 776% above this industry median. Based on the distribution chart, TKO Group Holdings ranks #101 out of 1015 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, TKO Group Holdings has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TKO Group Holdings' Operating Margin % compare to NWSA and WMG?
According to the Media - Diversified industry distribution chart, TKO Group Holdings ranks #101 out of 1015 companies for Operating Margin %. This places TKO Group Holdings in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 2.42. TKO Group Holdings' value of 21.20% is 776% above this benchmark. Historically, TKO Group Holdings' own Operating Margin % has ranged from 0.63 to 47.75 over the past decade. While the company's 10-year median is 26.44 vs. the industry median of 2.42, TKO Group Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Media - Diversified company?
The median Operating Margin % among Media - Diversified companies is 2.42, based on 1,015 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TKO Group Holdings's current Operating Margin % of 21.20% is 776% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on TKO Group Holdings and its competitors. For the Media - Diversified industry, the median Operating Margin % is 2.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TKO Group Holdings's current Operating Margin % is 21.20%, which is 20% below median its own 10-year median of 26.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TKO Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, TKO Group Holdings (TKO) is currently considered Significantly Overvalued. The stock's GF Value™ is $132.36, compared to a current price of $194.42 — trading 46.9% above its estimated fair value. The current Operating Margin % is 21.20%, which is 20% below median its 10-year median of 26.44 and 776% above the Media - Diversified industry median of 2.42. TKO Group Holdings' overall GF Score™ is 60/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For TKO Group Holdings (TKO), the current Operating Margin % is 21.20% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is TKO Group Holdings (TKO) Overvalued in 2026?
Based on GuruFocus' analysis, TKO Group Holdings stock appears to be overvalued.
The current stock price of $194.42 is trading 46.9% above its estimated GF Value™ of $132.36.
GuruFocus considers TKO Group Holdings to be Significantly Overvalued.
Key valuation signals for TKO:
Operating Margin %: 21.20% (20% below median its 10-year median of 26.44)
GF Value™: $132.36 vs. price of $194.42 (46.9% above fair value)
Industry Position: 776% above the Media - Diversified median (#101 of 1015)
No single metric tells the full story. See the TKO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TKO Group Holdings Inc is a sports and sports entertainment company that operates combat sports and sports entertainment companies. It owns and manages valuable sports and entertainment intellectual property. The company distributes content and monetizes its intellectual property through four activities: Media rights, production, and content, Live events and hospitality, Partnerships and marketing and Consumer products licensing, The company has two reportable segments, UFC and WWE. The company generates majority of revenue from the UFC segment. The UFC segment revenue consists of media rights fees associated with the distribution of its programming content, ticket sales, and site fees associated with the business's international live events.
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