FWONK

Liberty Media Corp. - Ordinary Shares (New Liberty Formula One) Series C

TMT


Presented:03/13/2024
Price:$70.04
Cap:$16.44B
Current Price:$79.90
Cap:$18.87B

Presented

Date03/13/2024
Price$70.04
Market Cap$16.44B
Ent Value$16.31B
P/E Ratio171.16x
Book Value$27.36
Div Yield0%
Shares O/S234.67M
Ave Daily Vol1,157,122
Short Int1.80%

Current

Price$79.90
Market Cap$18.87B
Liberty Media Corp. engages in the media and entertainment industries. It operates through the following segments: Sirius XM Holdings, Formula 1, and Other. The Sirius XM Holdings segment focuses on operating two complementary audio entertainment businesses, Sirius XM and Pandora and Off-platform. The Formula 1 segment is involved in the global motorsports business that holds exclusive commercial rights with respect to the world championship, an annual, motor race-based competition. The company was founded on March 28, 1991, and is headquartered in Englewood, CO.

Publicly traded companies mentioned herein: Liberty Formula One (FWONK)

Highlights

The presenter is long shares of Liberty Formula One (FWONK), which has been operated by Liberty Media since its 2017 acquisition. FWONK is flattish since the beginning of 2023 based on an overarching concern around sports rights monetization given the potential impact of weakening linear broadcasters’ abilities to afford increasing TV rights, as well as bloated costs at the inaugural Las Vegas Grand Prix that management attributes to a rushed setup, which should improve going forward. He thinks concerns about the health of the ecosystem are overstated given F1’s current monetization level, creating an attractive entry point as FCF grows 20%+ through ramping sponsorships and margin expansion. Modeling $4.50 FCF per share in 2026, he feels the stock should trade at 25x+ FCF, creating meaningful upside from the current $70 share price.

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