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Liberty Media Corporation - Series C Liberty Formula One (FWONK)

Fair Value
Communication ServicesEntertainmentUnited States

Fundamental

57

Price

$92.40

Market Cap

$23.84B

Part 1 · What the company is worth

Overview

FWONK tracks Liberty Media's Formula One Group, which holds the commercial rights to the Formula 1 World Championship and, since July 2025, to MotoGP as well. The group does not build cars or employ drivers — the ten F1 teams do that — it owns the rights to organize the championship, sell those broadcast and race rights, and collect a share of team-level economics under a long-term agreement with the teams and the sport's governing body, the FIA.

How it makes money

Formula 1 revenue comes from three main sources: fees paid by circuits to host a race, fees paid by broadcasters for media rights, and sponsorship fees from brands that pay to be associated with the sport, plus smaller hospitality and licensing revenue. A large share of that revenue is then paid out to the ten teams under the Concorde Agreement, so the group's profit depends on growing total revenue faster than the contractual team payments tied to it. MotoGP, acquired in mid-2025, adds a second, smaller motorsport with a broadly similar rights-based model.

Revenue by segment

Media rights fees27.3%

Fees paid by broadcasters and the F1 TV streaming subscription for the right to air Formula 1 races.

Race promotion fees23.3%

Fees paid by race circuits and host cities for the right to hold a round of the championship.

Sponsorship fees18.9%

Fees from global and race-specific sponsors, boosted in 2025 by a new ten-year LVMH partnership.

Other Formula 1 revenue17.7%

Paddock Club hospitality, freight services for teams, and licensing of the Formula 1 brand.

MotoGP12.9%

Commercial rights to the MotoGP motorcycle racing championship, consolidated since its July 2025 acquisition.

Competitive moat

Patents and licences · Wide

The group holds exclusive, long-term commercial rights to organize and sell Formula 1 under an agreement with the FIA that no competitor can replicate — there is only one FIA-sanctioned world championship of this kind. That legal exclusivity, not a replicable product or process, is the source of the group's pricing power over broadcasters, host circuits and sponsors.

What drives demand

Moderately cyclical

Media rights and race promotion fees are locked in by multi-year contracts, giving revenue more visibility than a typical consumer business, but sponsorship and hospitality spending still track corporate marketing budgets and can soften in a broader economic slowdown. Growing global fan interest, not the economic cycle, has been the main driver of recent growth.

Key risks

  • Dependence on the Concorde Agreement with the teams — The current commercial and revenue-sharing agreement with the ten teams and the FIA runs through 2030; a less favorable renegotiation at expiry would directly reduce the group's share of Formula 1 economics.
  • Reliance on a single sport's popularity — The large majority of the group's revenue and value depends on continued global interest in Formula 1; a decline in fan engagement, a competitive imbalance among teams, or reputational damage to the sport would flow directly into revenue.
  • Race calendar and circuit dependency — Race promotion revenue depends on host cities and circuits renewing or extending their contracts on acceptable terms, and on the events themselves taking place without cancellation from political, safety or logistical disruption.
  • Integration risk from the MotoGP acquisition — MotoGP was only consolidated into the group in July 2025; integrating a second motorsport's commercial operations, media contracts and team relationships carries execution risk distinct from the established Formula 1 business.

The case for

Buyers argue that exclusive, contractually locked commercial rights to the world's leading motorsport give the group pricing power that keeps compounding as global fan interest grows, that team payments have been falling as a share of profit even as those payments rise in absolute terms, and that the MotoGP acquisition opens a second growth avenue using the same commercial playbook.

The case against

Sellers fear that almost all value rests on a single sport's continued popularity and on renewing the Concorde Agreement on favorable terms after 2030, that sponsorship and hospitality revenue would soften in an economic downturn even if media contracts hold, and that integrating MotoGP so soon after acquisition could distract management or underdeliver against expectations.

Written by the editors, published on August 18, 2026

Direct competitors

Who this company fights with for the same customers

Compare

Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users

P/E: 63.1Score: 65Market cap: —

TKO owns global live-event sports properties sold through the same channel as Formula 1 — worldwide media rights packages, premium sponsorship and ticketed live events.

NASCAR Holdings, LLC (National Association for Stock Car Auto Racing)Not tracked

NASCAR is the other major commercial rights holder of a top-tier racing championship, competing with Formula 1 for U.S. broadcast deals, race attendance and motorsport sponsorship budgets.

Penske Entertainment Corp. (IndyCar Series / Indianapolis 500)Not tracked

IndyCar runs the rival single-seater championship in North America and competes for the same drivers, circuits, television windows and racing sponsors.

Formula E Operations Limited (ABB FIA Formula E World Championship)Not tracked

Formula E is the other FIA-sanctioned single-seater world championship, competing for manufacturer entries, city race hosting fees and the same global motorsport audience.

The Football Association Premier League Limited (Premier League)Not tracked

The Premier League is a Tier 1 global sports rights owner bidding against Formula 1 for the same broadcaster and streaming budgets and for viewers' weekend attention.

Balance Sheet & Liquidity

Revenue

$4.34B

Trailing 12 months (through 6/30/2026)

Net Income

$408M

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$789M

Total Equity

$7.76B

Total Liabilities

$6.95B

Current Ratio

1.27

Interest Coverage

2.32

Debt/EBITDA

5.08

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$84.72

Current Price

$92.40

Margin of Safety

-9.1%

Fair Value Range

$55.07 - $114.37

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$119.82
Discounted cash flow (DCF):Not enough data to compute it
Earnings multiple (P/E):$32.73
Graham growth formula:$13.19
Earnings power value (EPV):$26.62
Justified P/B:$26.57
Dividend discount (Gordon):Not enough data to compute it
P/FFO, funds from operations:Not enough data to compute it
Mid-cycle earnings:Not enough data to compute it
Revenue multiple:$38.92
Analyst Consensus:Strong Buy (17B / 1H / 0S)
Last Earnings Surprise:-92.14%

Valuation Metrics

P/E Ratio

39.84

ROE

7.2%

P/B Ratio

2.72

P/FCF

25.19

Gross Margin

-

ROIC

2.9%

Profitability Radar

Value Creation (Economic Moat)

ROIC

2.9%

WACC

7.6%

ROIC − WACC

-4.8 pp

ROIC is below the cost of capital — the company is destroying value for every dollar invested.

Fundamental Analysis Criteria

Passed (18)

  • Price CAGR 11.90%
  • P/FCF 25.19
  • P/B Ratio 2.72
  • Debt/Equity ratio
  • Operating Margin 11.9%
  • Positive Free Cash Flow
  • CapEx intensity
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 7.5%
  • Revenue Growth 5Y 31.4%
  • Analyst Consensus 94% Buy
  • Earnings Surprise avg 7.1%
  • Earnings Quality (OCF/NI) 2.33
  • Net Margin Trend 9.4% vs -65.1%
  • Piotroski F-Score 6/9

Failed (5)

  • EPS shows upward trend
  • EPS CAGR -63.16%
  • ROIC 2.9%
  • Low reliance on intangibles
  • DCF valuation (Unknown)

Unavailable (5)

  • Gross Margin NaN%
  • Dividend Payout NaN%
  • Price below Graham Number
  • PEG Ratio (need PE > 0 and growth > 0)
  • Share Dilution (missing shares data)

Piotroski F-Score

6/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

2.33

High quality: earnings backed by cash

Share Dilution

-

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Stefano DomenicaliPresident & CEO60
Mr. Duncan LlowarchChief Financial Officer-
Mr. Liam ParkerChief Communications & Corporate Relations Officer-
Ms. Emily PrazerChief Commercial Officer-
Ms. Amber ConnInvestor Relations Coordinator-

Audit Risk

8

Board Risk

10

Compensation Risk

10

Shareholder Rights Risk

10

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-26

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-08-06

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-09-02

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for FWONK, sourced from Markets Gazette.

  • 2/27/2026POSITIVE
    Why F1’s sponsorship boom is nearing $3 billion

    Formula 1 is experiencing a golden age, with sponsorships nearing the $3 billion mark. This figure, exceeding expectations, highlights the motorsport's transformation into a premier global business platform, synonymous with luxury and premium brand partnerships. The rapid expansion of its worldwide audience and growing commercial demand are the driving forces behind this unstoppable growth. For investors, this positive trend translates into a significant strengthening of the underlying value of assets like Liberty Media Corporation, which owns the Formula One Group. The increase in sponsorship revenue not only improves operating margins but also signals greater financial stability and future growth potential, making investment in the sector more attractive. F1's ability to attract and retain high-profile partners is a key indicator of its resilience and market appeal.

  • 2/25/2026NEUTRAL
    Earnings Preview: Liberty Formula One Group

    An earnings preview for Liberty Formula One Group has been announced for February 25, 2026. This type of communication precedes the official release of the company's financial results, serving as a reminder to investors of the upcoming event. For shareholders and analysts, the earnings date is a crucial moment to assess business performance, understand future strategies, and anticipate potential impacts on the stock's value. While this news itself contains no specific financial data or projections, its importance lies in signaling the approach of an event that could generate volatility and trading opportunities, depending on whether results beat, meet, or miss market expectations. Investors will closely monitor upcoming announcements for details on revenue, profits, and guidance.

via Markets Gazette