Update shared on 07 Nov 2025
Fair value Increased 1.38%Analysts have raised their price target for Formula One Group by $1.60 to $117.47. They cite ongoing healthy trends in live events, promotion, and sponsorship, despite softer revenue growth expectations.
Analyst Commentary
Recent research highlights both strengths and potential challenges for Formula One Group as the outlook for the company's shares is updated.
Bullish Takeaways- Bullish analysts point to healthy trends in live events, promotion, and sponsorship, supporting confidence in the company's long-term growth.
- The inclusion of Dorna in updated company models is seen as a move that can enhance the diversity and revenue profile of the business.
- The business is viewed as well positioned to compound free cash flow growth in the coming years, reinforcing the recent upward revisions to price targets.
- Resilient demand across related business lines allows some flexibility, even if the pace of rights related revenue catalysts slows.
- Bearish analysts note that rights catalysts are becoming less frequent, which could temper top line growth projections over the medium term.
- While current trends are healthy, softer expectations for revenue growth may weigh on near term valuation.
- Execution risks related to the successful integration of Dorna and expansion into new business lines could present future challenges.
- Ongoing dependency on event driven income may expose Formula One Group to macroeconomic uncertainties or shifts in consumer demand.
What's in the News
- Formula One Group will hold a Special/Extraordinary Shareholders Meeting on December 5, 2025 (Key Developments).
- An Analyst/Investor Day is scheduled to discuss the company's financial performance, outlook, and future plans (Key Developments).
Valuation Changes
- Fair Value Estimate has risen slightly to $117.47 from $115.87.
- Discount Rate has increased moderately and is now at 9.7%, compared to 9.4% previously.
- Revenue Growth expectations have softened, decreasing to 10.8% from the earlier 11.3%.
- Net Profit Margin has improved substantially to 21.8%, up from the previous 14.2%.
- Future P/E multiple has fallen significantly to 32.9x from 50.8x, reflecting adjustments in growth and profitability outlooks.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.