Munro Partners’ Qiao Ma pitched TKO Group Holdings as a top investment opportunity at the Sohn Hearts & Minds Investment conference in Sydney. Ma highlighted the $US35 billion sports and entertainment company, formed in 2023 through the merger of Endeavor’s Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE). TKO Group operates in the sports and entertainment sector, producing and promoting live events and content. The company is a result of a merger between UFC and WWE, offering a diverse portfolio of entertainment assets.
Ma’s investment thesis centres on the leadership of UFC chief executive Dana White and super agent Ari Emanuel. She emphasised TKO’s ability to generate unique content and substantial profits. Ma noted that the company’s financial strength and growth potential are not fully reflected in its current valuation.
According to Ma, TKO Group is a “cash flow machine” with an impressive EBITDA margin of 35 per cent, positioning it among the highest in the media sector. She argued that the company’s “undiscovered” status makes it a particularly attractive investment. Despite a growth rate of 15 per cent per year, the stock currently trades at only 17 times earnings, which Munro Partners considers a bargain.
TKO Group’s shares have already demonstrated strong performance this year, climbing more than 27 per cent year-to-date in New York. Ma’s endorsement at the Sohn Hearts & Minds conference could further boost investor interest in the company, reinforcing her view that TKO Group represents a compelling and undervalued investment opportunity.
