Assessing Formula One Group (NasdaqGS:FWON.K) Valuation as Record Viewership and Apple Streaming Bid Drive Commercial Momentum

If you’re wondering how to play Formula One Group (NasdaqGS:FWON.K) after this week's headlines, you’re not alone. Record-setting viewership for the 2025 season has the sport firing on all cylinders. Formula One is averaging 1.4 million viewers per race so far, and now Apple is prepared to pay $150 million per year for streaming rights. That figure is miles ahead of ESPN’s current deal, signaling that the market for premium sports content is heating up. When McLaren Racing’s CEO calls out surging sponsorships from top-tier American tech giants, investors have every reason to take notice.

All this noise around new deals has shaken up the stock this year. Formula One Group shares have climbed 34% in the past year and are up 14% year-to-date, handily outpacing the broader market. Momentum hasn’t always been one way, as shares dipped slightly over the past three months, yet the bigger picture is hard to ignore thanks to steady revenue and profit growth, plus an impressive near-doubling for shareholders over five years. With bullish signals coming from both media partners and the sponsor bench, there is a palpable sense of acceleration under the hood.

But does the current valuation leave enough on the table for new buyers, or is the market already baking in another lap of growth?

Most Popular Narrative: 9.4% Undervalued

According to the most widely followed narrative, Formula One Group is considered modestly undervalued based on its long-term growth outlook and current discount to fair value.

Ongoing digital transformation, as shown by F1 TV's strong international subscriber growth, premium-tier uptake, and a vibrant digital and social content ecosystem, enables Formula One to directly monetize its expanding young global audience while improving net margins and earnings stability through higher-margin direct-to-consumer subscription streams.

What is the secret fuel behind this narrative’s compelling valuation? Unlock the story of how digital innovation, swelling younger fan bases, and new high-margin revenue streams could power the next era for Formula One. Want the roadmap behind these projections and the ambitious future profit targets set by analysts? The full narrative reveals the surprising formulas and numbers that drive this upbeat outlook.

Result: Fair Value of $115.87 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rising costs and reliance on new market expansion could pressure margins and create challenges for the sustainability of Formula One’s upward trajectory.

Find out about the key risks to this Formula One Group narrative.

Another View: Are Shares Priced for Perfection?

Looking from a different angle, the current stock price stands out as expensive compared to the rest of the US Entertainment sector using a market earnings-based approach. Could the market be overestimating future growth?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Formula One Group to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Formula One Group Narrative

If you see things differently or would rather dig into the numbers for yourself, you can build your own take on Formula One Group in just a few minutes. Do it your way.

A great starting point for your Formula One Group research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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