TKO Group HoldingsTKO +0.14%60 ROE % is 10.05% as of Mar. 2026, which is 5% above its 10-year median of 9.55. GuruFocus rates TKO with a GF Score™ of 60/100 and a GF Value™ of $131.71 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 958 Media - Diversified companies, TKO Group Holdings ranks better than 61.69% on this metric.
The historical rank and industry rank for TKO Group Holdings's ROE % or its related term are showing as below:
TKO'
s ROE % Range Over the Past 10 Years
Min: 0.23 Med: 9.55 Max: 42.61
Current: 5.85
During the past 6 years, TKO Group Holdings's highest ROE % was 42.61%. The lowest was 0.23%. And the median was 9.55%.
TKO's ROE % is ranked better than 61.69% of 958
companies
in the Media - Diversified industry
Industry Median: 2.47
vs TKO: 5.85
TKO Group Holdings (NYSE:TKO) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
TKO Group Holdings ROE % Related Terms
TKO Group Holdings ROE % Historical Data
* Premium members only.
The historical data trend for TKO Group Holdings's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, TKO Group Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where TKO Group Holdings's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
TKO Group Holdings (TKO) has a ROE % of 10.05% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on TKO Group Holdings and its competitors. This is near median its historical median of 9.55. Over the past decade, TKO Group Holdings' ROE % has ranged from 0.23 to 42.61. According to the industry distribution chart, TKO Group Holdings ranks #367 out of 958 companies in the Media - Diversified industry, placing it in the top 38.3%.
Is TKO Group Holdings' ROE % too high?
TKO Group Holdings' current ROE % of 10.05% is near median its 10-year median of 9.55. Over the past 10 years, this metric has ranged from a low of 0.23 to a high of 42.61. The Media - Diversified industry median ROE % is 2.47. TKO Group Holdings' value of 10.05% is 306.9% above this industry median. Based on the distribution chart, TKO Group Holdings ranks #367 out of 958 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' ROE % compare to NWSA and WMG?
According to the Media - Diversified industry distribution chart, TKO Group Holdings ranks #367 out of 958 companies for ROE %. This puts TKO Group Holdings in the upper half of its industry. The industry median ROE % is 2.47. TKO Group Holdings' value of 10.05% is 306.9% above this benchmark. Historically, TKO Group Holdings' own ROE % has ranged from 0.23 to 42.61 over the past decade. While the company's 10-year median is 9.55 vs. the industry median of 2.47, 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 ROE % for a Media - Diversified company?
The median ROE % among Media - Diversified companies is 2.47, based on 958 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TKO Group Holdings's current ROE % of 10.05% is 306.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on TKO Group Holdings and its competitors. For the Media - Diversified industry, the median ROE % is 2.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TKO Group Holdings's current ROE % is 10.05%, which is near median its own 10-year median of 9.55. 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 $131.71, compared to a current price of $203.80 — trading 54.7% above its estimated fair value. The current ROE % is 10.05%, which is near median its 10-year median of 9.55 and 306.9% above the Media - Diversified industry median of 2.47. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For TKO Group Holdings (TKO), the current ROE % is 10.05% 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 54.7% above its estimated GF Value™ of $131.71.
GuruFocus considers TKO Group Holdings to be Significantly Overvalued.
Key valuation signals for TKO:
ROE %: 10.05% (near median its 10-year median of 9.55)
GF Value™: $131.71 vs. price of $203.80 (54.7% above fair value)
Industry Position: 306.9% above the Media - Diversified median (#367 of 958)
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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