What Is WWE Worth?

WWE is a publicly traded company with a current market capitalization of over $1.6 billion. But what is WWE actually worth? Let’s take a closer look.

WWE’s Business Model

WWE is a publicly traded company with a market capitalization of $3.4 billion as of April 2019. The company’s business model is built around live events, merchandise, and media (television and digital), which are monetized through various revenue streams. Let’s take a closer look at each of these revenue streams.

Live events

A big part of WWE’s business model is their live events. WWE hosts many live events each year, both in the United States and internationally. These live events are a major source of revenue for WWE, as they often sell out arenas and stadiums. In addition, WWE merchandise is also sold at these live events.

WWE also offers live event tickets for sale on their website. You can purchase tickets to upcoming WWE live events, as well as box sets of DVDs for past events.

Television

WWE’s television business model has evolved over the years. In the early days, WWE (then known as the World Wrestling Federation, or WWF) was primarily a live event company. The company’s flagship event, WrestleMania, was a huge draw, but it was the only event that was widely available on pay-per-view (PPV). As such, WrestleMania was the primary source of revenue for the company.

In the mid-1990s, WWE began to air its flagship show, Monday Night Raw, on a cable network called USA Network. This was a huge shift for the company, as it now had a regular television platform on which to air its product. Raw quickly became one of the highest-rated shows on cable television, and WWE began to air other shows on USA Network as well (such as Saturday Night’s Main Event).

In 2000, WWE debuted another show called SmackDown! on a different cable network (UPN). This marked the first time that WWE had two regular television shows airing on different networks.

In 2005, WWE launched its own 24/7 cable network called WWE Network. This was a major milestone for the company, as it gave WWE complete control over its own content and distribution. The launch of WWE Network also coincided with the end of WWE’s partnership with USA Network (Raw) and UPN (SmackDown!).

WWE currently airs four shows on its cable network: Raw, SmackDown Live!, Main Event, and 205 Live. In addition to these regular shows, WWE also produces numerous special events each year that are available on PPV or via the WWE Network.

Merchandise

WWE merchandise is one of the company’s most lucrative revenue streams. In fact, merchandise sales account for approximately 10% of WWE’s total revenue.

WWE has a wide array of merchandise available for sale, including t-shirts, action figures, DVDs, and many other items. The company licenses its merchandise to a variety of retailers, including Walmart, Target, and Toys “R” Us.

WWE’s merchandise business is very successful due to the company’s large and passionate fan base. WWE fans are some of the most loyal in all of sports and entertainment, and they are willing to spend money on merchandise that supports their favorite wrestlers and events.

Digital media

The global professional wrestling market was valued at $1.54 billion in 2018. Of that, WWE accounted for $277 million, or about 18%. That leaves a little more than $1 billion up for grabs for other promoters, such as All Elite Wrestling (AEW), New Japan Pro-Wrestling (NJPW) and Impact Wrestling.

WWE’s business model is simple: it produces entertainment content and sells it directly to consumers through its digital media platforms, including its website, app and streaming service. The company also generates revenue from ticket sales, merchandise and sponsorships.

While WWE’s revenue has grown steadily over the past decade, the company has struggled to find new ways to grow in recent years. In 2018, WWE’s revenue was flat compared to the previous year. That’s why the company is now looking to expand its reach into new markets, such as India and China, and attract new fans with its revamped product.

WWE’s Financials

WWE is a publicly traded company, and as such, their financials are available for anyone to see. The company is worth an estimated $3 billion. This includes their TV rights, live events, merchandising, and licensing.

Revenue

In 2019, WWE generated a total revenue of $930.2 million, which was an increase of $27.9 million, or 3%, from the prior year. The company’s Live Events, Consumer Products and Network divisions all helped contribute to this growth. WrestleMania 35, which took place in April 2019 at MetLife Stadium in New York/New Jersey, was the biggest and most successful event in WWE history, generating more than $165 million in revenue.

Operating income

According to their 2018 10-K filing, WWE had an operating income of $33.4 million in 2017, down from $38.9 million in 2016. The company’s operating income is the profit that it makes from its core businesses, which are live events, content licensing, and WWE Network subscriptions.

WWE’s operating income has been on a general decline in recent years,due in part to the company’s increased investment in content production. In 2017, WWE spent $265 million on content production, up from $247 million in 2016. This increase in content spending has weighed on the company’s bottom line even as its top line revenues have continued to grow.

Net income

In 2018, WWE’s net income was $27.9 million, compared to $32.6 million in 2017. The company’s operating income was $31.0 million in 2018, compared to $37.1 million in 2017. WWE’s net income for the fourth quarter of 2018 was $8.4 million, or $0.11 per diluted share, compared to $8.2 million, or $0.11 per diluted share, in the fourth quarter of 2017.

WWE’s operating income was $10.5 million in the fourth quarter of 2018, compared to operating income of $10.7 million in the fourth quarter of 2017. WWE’s OIBDA (operating income before depreciation and amortization) for the fourth quarter of 2018 was $16.3 million compared to $16.4 million in the fourth quarter of 2017.”

WWE’s Valuation

WWE is a publicly traded company, and as such, its worth is dictated by the stock market. As of early 2020, WWE’s stock was trading at around $50 per share, giving the company a market capitalization of around $4 billion. However, WWE’s true value is likely much higher than that.

Enterprise value

WWE’s enterprise value is calculated to be $4.74 billion as of May 2020. This is calculated by taking the market capitalization of $3.11 billion and adding debt, minority interest, and preferred shares, minus total cash and investments.

Market capitalization

WWE’s market capitalization is $3.4 billion.

WWE’s Stock Performance

WWE is a publicly traded company on the New York Stock Exchange (NYSE). As of November 2020, WWE’s market capitalization is US$3.02 billion. WWE has traded as high as $93.30 per share in February 2014. The stock has a 52-week low of $24.87 per share, which was set in March 2020.

52-week high and low

WWE’s stock hit a 52-week high on January 26, 2018 of $37.56 per share and hit a 52-week low on July 5, 2017 of $20.21 per share.

Volume

WWE’s stock is down 6% on very light volume in mid-afternoon trading, likely due to a combination of negative press and the company’s lackluster Q1 results.

Analysts’ Recommendations

WWE has been in the news a lot lately with their new television deal and upcoming Saudi Arabia shows. Analysts have been wondering if WWE is worth their current stock price. Let’s take a look at what the analysts are saying.

Buy

The company’s stock is up more than 160% in the past five years, and it is currently trading at $93.72.
Analysts have a price target of $104.13, implying upside potential of more than 11%.
While there are concerns about the company’s slowing growth, WWE has been able to increase its revenue and profit margins in recent years.
Operating margin expanded from 9.4% in 2014 to 11.4% in 2018, while net income margin increased from 5.6% to 7.4% over the same period.

Hold

On Wall Street, the age-old adage is “buy the rumor, sell the news.” In this case, it means that analyst recommendations tend to lag a company’s stock performance. This is particularly true for high-profile companies like WWE, which are often in the news and in investors’ crosshairs.

If WWE stock is trading at $100 per share and an analyst recommends that investors buy the stock, it’s likely because the analyst believes WWE will outperform the market. If the stock subsequently falls to $90 per share, the analyst may then downgrade their recommendation to “hold,” meaning they believe WWE will perform in line with the market.

While analysts’ recommendations can be useful for identifying potential investment opportunities, it’s important to remember that they are not always accurate. Ultimately, it’s up to individual investors to do their own due diligence before buying or selling any stock.

Sell

WWE is a publicly traded company, and as such, its stock is subject to the ebbs and flows of the market. Recently, analysts have been recommending that investors sell their WWE stock, citing a variety of reasons.

First and foremost, analysts believe that WWE is overvalued. The company’s current market capitalization is $3.1 billion, but its enterprise value is only $2.4 billion. This means that the market is assigning a premium to WWE’s equity, and analysts believe that this premium is unwarranted.

In addition, analyst firm BTIG downgraded WWE stock from “neutral” to “sell,” citing concerns about the company’s live event business. BTIG believes that WWE is facing increased competition from other forms of entertainment, such as streaming services like Netflix (NFLX).

Finally, some analysts are concerned about WWE’s recent TV deal with FOX (FOXA). While the deal is worth a whopping $1 billion per year, it comes with some strings attached. Namely, it requires FOX to air live programming on Friday nights – a slot that has historically low viewership. This could lead to lower ratings for Friday Night SmackDown!, which could in turn lead to lower ad revenue for FOX.

All things considered, analysts are fairly bearish on WWE stock at the moment. If you’re thinking about investing in the company, you may want to wait until the dust settles before buying shares.