WWE

World Wrestling Entertainment Inc

Consumer


Presented:12/03/2019
Price:$61.88
Cap:$4.86B
Current Price:$125.36
Cap:$10.16B

Presented

Date12/03/2019
Price$61.88
Market Cap$4.86B
Ent Value$6.74B
P/E Ratio117.22x
Book Value$3.73
Div Yield0.78%
Shares O/S78.56M
Ave Daily Vol1,232,117
Short Int36.68%

Current

Price$125.36
Market Cap$10.16B
World Wrestling Entertainment, Inc. engages in the development, production and marketing of television and pay-per-view event programming and live events and the licensing and sale of consumer products featuring its brands. It operates through the following business segments: Digital Media, Live Events, Consumer Products Division, WWE Studios, and Corporate & Other. The Digital Media segment revenues consist principally of subscriptions to WWE Network, fees for viewing its pay-per-view and video-on-demand programming, and advertising fees. The Live Events segment revenues consist principally of ticket sales and travel packages for live events. The Consumer Products segment revenues consist principally of royalties or license fees related to various WWE themed products such as video games, toys and apparel. The WWE Studios segment revenues consist of amounts earned from the investing in producing and/or distributing of filmed entertainment. The Corporate & Other segment revenues consist of amounts earned from the investing in producing and/or distributing of filmed entertainment. The company was founded by Vincent K. McMahon in 1980 and is headquartered in Stamford, CT.

Publicly traded companies mentioned herein: World Wrestling Entertainment Inc (WWE)

Highlights

The presenter is long shares of World Wrestling Entertainment Inc (WWE), and believes the stock is undervalued at ~$60, having traded down from a high of $96 in April 2019. WWE is at an interesting point, as they have renewed TV rights in the US, and are in the process of renewing international TV rights in India and the Middle East. The presenter believes both of these international deals are a material catalyst in the next three months, which could be resolved by February 2020. Once management is able to clarify guidance, he is targeting $5 of FCF in 2021 and sees the stock trading up to 15x EBITDA.

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Idea Discussion

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