Formula One Group (FWONK)
Valuation Overview•Is Formula One Group Overvalued or Undervalued?
Trading at a discount compared to peers, but the underlying intrinsic cash flows struggle to support the current price.
Moderate quality score of 55/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is highly bullish, projecting significant upside. The company currently dilutes shareholders to fund operations and growth rather than returning capital.
FWONK demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company is driving exceptional top-line expansion (20.3% 3Y CAGR) paired with stable bottom-line earnings. The company maintains healthy operational efficiency with a 15.6% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $711.0M | +22.7% | +20.3% | +31.4% | -0.7% | |
| EBITDA | $176.0M | — | +23.1% | — | — | |
| Net Income | $57.0M | +1950.0% | -0.2% | — | — | |
| EPS (Diluted) | $0.23 | +1891.7% | +0.0% | — | — | |
| Free Cash Flow | $337.0M | +52.6% | +45.7% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 27.3% | 29.1% | 29.9% | 28.6% |
| Operating Margin | 15.6% | 10.2% | 7.8% | -1.1% |
| Net Margin | 12.8% | 5.8% | 6.0% | -3.5% |
| FCF Margin | 15.4% | 12.1% | 13.5% | 8.3% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $-0.06 | $0.03 | +150.0% | ||
| Q1'26 | $0.40 | $0.39 | -1.6% | ||
| Q4'25 | $0.42 | $0.24 | -42.9% | ||
| Q3'25 | $0.81 | $1.52 | +87.7% | ||
| Q2'25 | $-0.18 | $0.05 | +127.8% | ||
| Q1'25 | $0.42 | $-1.03 | -345.2% | ||
| Q4'24 | $0.19 | — | — | ||
| Q3'24 | $0.31 | $0.10 | -67.7% |
Total return is -11.0% (1Y), lagging the benchmark by -36.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -7.4% | -16.7% | — |
| 1Y | -11.0% | -36.0% | — |
| 3YCAGR | +6.3% | -13.3% | +1.6% |
| 5YCAGR | +16.1% | +3.2% | +2.8% |
| 10YCAGR | +17.5% | +4.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Formula One Group (FWONK) valuation, health, and returns.
Formula One Group is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. overvalued (implying -32.0% downside from DCF intrinsic value of $61.70)
Formula One Group has multiple valuation anchors: DCF Intrinsic Value: $61.70 | Peer Relative Fair Value: $175.13 | Wall Street Analyst Target: $115.75 (implying +27.5% upside). A convergence of these signals offers higher conviction.
Formula One Group displays fair financial health with a composite quality score of 55/100, supported by a Altman Z-Score of 2.7 (grey zone), Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 4.5%.
Formula One Group does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Formula One Group's current growth trajectory is Accelerating. The company achieved +22.7% 1Y revenue growth and +1891.7% 1Y EPS growth, compared to its 3Y revenue CAGR of +20.3%.
Wall Street consensus is Buy based on 24 analysts, beating EPS expectations in 50% of recent quarters with a 1-quarter streak. The consensus price target represents a +27.5% change from current levels.
Investment risks for Formula One Group include: -24.8% 1-year max drawdown. Volatility risk is characterized by a beta of 0.40x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.