Based on the provided data and current market conditions, here's an analysis of TKO's valuation:
Valuation Analysis
TKO currently shows signs of being fairly valued based on multiple metrics. The company's EV/EBITDA ratio of 24.07 in Q3 2024 indicates a premium valuation compared to historical levels, having increased from 21.49 in Q2 2024.
Price Movement
The stock is currently trading at $173.925 during regular market hours, showing strong momentum with a +4.54% gain today. The pre-market activity also demonstrated strength with a +1.29% increase.
Insider Activity
Recent insider transactions show significant bullish sentiment:
- Lake West HoldCo purchased 1,262 shares on Feb 7, 2025, increasing their position to 2,188,966 shares
- Patrick Whitesell acquired 27,313 shares on Feb 6, 2025, worth approximately $4.4 million
- Over the past 6 months, insiders have made 234 purchases versus only 9 sales
Institutional Interest
Strong institutional confidence is evident with 223 institutions increasing their positions while 172 decreased their holdings in the most recent quarter.
Valuation Metrics Trend (Q1-Q3 2024):
- P/S ratio increased from 3.51 to 4.65
- P/B ratio rose from 1.77 to 2.48
- EV/EBITDA expanded from 23.84 to 24.07
Given the strong insider buying activity, positive institutional sentiment, and current market momentum, TKO appears to be appropriately valued at current levels. The increasing valuation multiples are supported by robust insider confidence and institutional support.