WWE
World Wrestling Entertainment, Inc.
TMT
02/24/2020
Presented
| Date | 02/20/2020 |
| Price | $47.74 |
| Market Cap | $3.75B |
| Ent Value | $6.06B |
| P/E Ratio | 55.77x |
| Book Value | $3.56 |
| Div Yield | 1.01% |
| Shares O/S | 78.56M |
| Ave Daily Vol | 1,871,162 |
| Short Int | 31.99% |
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: Amazon.com Inc (AMZN), Comcast Corp (CMCSA), Fox Corp (FOX), Walt Disney Co/The (DIS), World Wrestling Entertainment Inc (WWE)
Highlights
The presenter is long shares of World Wrestling Entertainment Inc (WWE), which has seen its stock price cut in half over the past eighteen months. In that time, catalysts such as Middle East distribution deal delays and leadership shake-ups have negatively impacted WWE’s performance, its outlook going forward, and overall investor sentiment. Despite this, the presenter sees material upside to management’s 2020 OIBDA guidance of $250MM – $300MM, which he views as conservative. Between factors including international business, domestic streaming opportunities, and capex step downs, he considers $350MM – $375MM a more reasonable OIBDA estimate. At WWE’s current ~$46 share price, the market is valuing the company at ~12.5x and ~10x the high end of OIBDA guidance and the presenter’s expectations, respectively. If his base case is correct, the presenter anticipates WWE’s multiple rerating to ~15x OIBDA and the share price to reach the mid- to high-$60 range.
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