As of May 22, 2025, World Wrestling Entertainment Inc has a Discounted Cash Flow (DCF) derived fair value of $92.21 per share. With the current market price at $100.65, this represents a potential upside of -8.4%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $83.11 |
| DCF Fair Value (10-year) | $92.21 |
| Potential Upside (5-year) | -17.4% |
| Potential Upside (10-year) | -8.4% |
| Discount Rate (WACC) | 5.4% - 7.8% |
Revenue is projected to grow from $1292 million in 12-2022 to $2664 million by 12-2032, representing a compound annual growth rate of approximately 7.5%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2022 | 1292 | 18% |
| 12-2023 | 1383 | 7% |
| 12-2024 | 1486 | 7% |
| 12-2025 | 1636 | 10% |
| 12-2026 | 1735 | 6% |
| 12-2027 | 1895 | 9% |
| 12-2028 | 2066 | 9% |
| 12-2029 | 2157 | 4% |
| 12-2030 | 2349 | 9% |
| 12-2031 | 2467 | 5% |
| 12-2032 | 2664 | 8% |
Net profit margin is expected to improve from 15% in 12-2022 to 16% by 12-2032, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2022 | 196 | 15% |
| 12-2023 | 218 | 16% |
| 12-2024 | 235 | 16% |
| 12-2025 | 258 | 16% |
| 12-2026 | 274 | 16% |
| 12-2027 | 299 | 16% |
| 12-2028 | 326 | 16% |
| 12-2029 | 341 | 16% |
| 12-2030 | 371 | 16% |
| 12-2031 | 390 | 16% |
| 12-2032 | 421 | 16% |
with a 5-year average of $74 million. Projected CapEx is expected to maintain at approximately 7% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2023 | 85 |
| 12-2024 | 91 |
| 12-2025 | 107 |
| 12-2026 | 121 |
| 12-2027 | 106 |
| 12-2028 | 115 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 36 |
| Days Inventory | 0 |
| Days Payables | 0 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 6M/2023 | 193 | 32 | 45 | 19 | 97 |
| 2024 | 415 | 69 | 97 | 33 | 216 |
| 2025 | 463 | 76 | 107 | (6) | 286 |
| 2026 | 499 | 81 | 113 | 17 | 288 |
| 2027 | 519 | 89 | 123 | 20 | 287 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 83.11 | -17.4% |
| 10-Year DCF (Growth) | 92.21 | -8.4% |
| 5-Year DCF (EBITDA) | 46.66 | -53.6% |
| 10-Year DCF (EBITDA) | 57.18 | -43.2% |
Is World Wrestling Entertainment Inc (WWE) a buy or a sell? World Wrestling Entertainment Inc is definitely a sell. Based on our DCF analysis, World Wrestling Entertainment Inc (WWE) appears to be fairly valued with upside potential of -8.4%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a hold at the current market price of $100.65.