TKO Group HoldingsTKO +5.93%60 Pretax Margin % is 17.67% as of Mar. 2026, which is 2% above its 10-year median of 17.36. GuruFocus rates TKO with a GF Score™ of 60/100 and a GF Value™ of $131.79 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,016 Media - Diversified companies, TKO Group Holdings ranks better than 82.78% on this metric.
The historical rank and industry rank for TKO Group Holdings's Pretax Margin % or its related term are showing as below:
TKO'
s Pretax Margin % Range Over the Past 10 Years
Min: -4.3 Med: 17.36 Max: 35.39
Current: 13.92
TKO's Pretax Margin % is ranked better than 82.78% of 1016
companies
in the Media - Diversified industry
Industry Median: 1.975
vs TKO: 13.92
TKO Group Holdings (NYSE:TKO) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
TKO Group Holdings Pretax Margin % Related Terms
TKO Group Holdings Pretax Margin % Historical Data
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The historical data trend for TKO Group Holdings's Pretax 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: Pretax Margin % Comparison
For the Entertainment subindustry, TKO Group Holdings's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, TKO Group Holdings's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where TKO Group Holdings's Pretax Margin % falls into.
* 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 Pretax Margin % of 17.67% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on TKO Group Holdings and its competitors. This is near median its historical median of 17.36. According to the industry distribution chart, TKO Group Holdings ranks #175 out of 1016 companies in the Media - Diversified industry, placing it in the top 17.2%.
Is TKO Group Holdings' Pretax Margin % too high?
TKO Group Holdings' current Pretax Margin % of 17.67% is near median its 10-year median of 17.36. The Media - Diversified industry median Pretax Margin % is 1.98. TKO Group Holdings' value of 17.67% is 794.7% above this industry median. Based on the distribution chart, TKO Group Holdings ranks #175 out of 1016 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' Pretax Margin % compare to NWSA and WMG?
According to the Media - Diversified industry distribution chart, TKO Group Holdings ranks #175 out of 1016 companies for Pretax Margin %. This places TKO Group Holdings in the top 17% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 1.98. TKO Group Holdings' value of 17.67% is 794.7% above this benchmark. While the company's 10-year median is 17.36 vs. the industry median of 1.98, 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 Pretax Margin % for a Media - Diversified company?
The median Pretax Margin % among Media - Diversified companies is 1.98, based on 1,016 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TKO Group Holdings's current Pretax Margin % of 17.67% is 794.7% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on TKO Group Holdings and its competitors. For the Media - Diversified industry, the median Pretax Margin % is 1.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TKO Group Holdings's current Pretax Margin % is 17.67%, which is near median its own 10-year median of 17.36. 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 $131.79, compared to a current price of $215.88 — trading 63.8% above its estimated fair value. The current Pretax Margin % is 17.67%, which is near median its 10-year median of 17.36 and 794.7% above the Media - Diversified industry median of 1.98. TKO Group Holdings' overall GF Score™ is 60/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For TKO Group Holdings (TKO), the current Pretax Margin % is 17.67% 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 $215.88 is trading 63.8% above its estimated GF Value™ of $131.79.
GuruFocus considers TKO Group Holdings to be Significantly Overvalued.
Key valuation signals for TKO:
Pretax Margin %: 17.67% (near median its 10-year median of 17.36)
GF Value™: $131.79 vs. price of $215.88 (63.8% above fair value)
Industry Position: 794.7% above the Media - Diversified median (#175 of 1016)
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.
60GF Score
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