TKO Group HoldingsTKO +0.14%60 ROA % is 2.27% as of Mar. 2026, which is 17% below its 10-year median of 2.75. GuruFocus rates TKO with a GF Score™ of 60/100 and a GF Value™ of $131.79 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,042 Media - Diversified companies, TKO Group Holdings ranks better than 55.47% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. TKO Group Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was $357 Mil.
TKO Group Holdings's average Total Assets over the quarter that ended in Mar. 2026 was $15,759 Mil. Therefore, TKO Group Holdings's annualized ROA % for the quarter that ended in Mar. 2026 was 2.27%.
The historical rank and industry rank for TKO Group Holdings's ROA % or its related term are showing as below:
TKO'
s ROA % Range Over the Past 10 Years
Min: 0.07 Med: 2.75 Max: 9.83
Current: 1.46
During the past 6 years, TKO Group Holdings's highest ROA % was 9.83%. The lowest was 0.07%. And the median was 2.75%.
TKO's ROA % is ranked better than 55.47% of 1042
companies
in the Media - Diversified industry
Industry Median: 0.65
vs TKO: 1.46
TKO Group Holdings (NYSE:TKO) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
TKO Group Holdings ROA % Related Terms
TKO Group Holdings ROA % Historical Data
* Premium members only.
The historical data trend for TKO Group Holdings's ROA % 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.
For the Entertainment subindustry, TKO Group Holdings's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, TKO Group Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where TKO Group Holdings's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
TKO Group Holdings (TKO) has a ROA % of 2.27% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on TKO Group Holdings and its competitors. This is 17% below median its historical median of 2.75. Over the past decade, TKO Group Holdings' ROA % has ranged from 0.07 to 9.83. According to the industry distribution chart, TKO Group Holdings ranks #464 out of 1042 companies in the Media - Diversified industry, placing it in the top 44.5%.
Is TKO Group Holdings' ROA % too high?
TKO Group Holdings' current ROA % of 2.27% is 17% below median its 10-year median of 2.75. Over the past 10 years, this metric has ranged from a low of 0.07 to a high of 9.83. The Media - Diversified industry median ROA % is 0.65. TKO Group Holdings' value of 2.27% is 249.2% above this industry median. Based on the distribution chart, TKO Group Holdings ranks #464 out of 1042 companies in the Media - Diversified industry, which is above the industry midpoint. 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' ROA % compare to NWSA and WMG?
According to the Media - Diversified industry distribution chart, TKO Group Holdings ranks #464 out of 1042 companies for ROA %. This puts TKO Group Holdings in the upper half of its industry. The industry median ROA % is 0.65. TKO Group Holdings' value of 2.27% is 249.2% above this benchmark. Historically, TKO Group Holdings' own ROA % has ranged from 0.07 to 9.83 over the past decade. While the company's 10-year median is 2.75 vs. the industry median of 0.65, 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 ROA % for a Media - Diversified company?
The median ROA % among Media - Diversified companies is 0.65, based on 1,042 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TKO Group Holdings's current ROA % of 2.27% is 249.2% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on TKO Group Holdings and its competitors. For the Media - Diversified industry, the median ROA % is 0.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TKO Group Holdings's current ROA % is 2.27%, which is 17% below median its own 10-year median of 2.75. 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 $203.80 — trading 54.6% above its estimated fair value. The current ROA % is 2.27%, which is 17% below median its 10-year median of 2.75 and 249.2% above the Media - Diversified industry median of 0.65. TKO Group Holdings' overall GF Score™ is 60/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For TKO Group Holdings (TKO), the current ROA % is 2.27% 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 $203.80 is trading 54.6% above its estimated GF Value™ of $131.79.
GuruFocus considers TKO Group Holdings to be Significantly Overvalued.
Key valuation signals for TKO:
ROA %: 2.27% (17% below median its 10-year median of 2.75)
GF Value™: $131.79 vs. price of $203.80 (54.6% above fair value)
Industry Position: 249.2% above the Media - Diversified median (#464 of 1042)
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
Get the complete analysis for TKO
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TKO has been successfully added to your 
