WWE has been around since the 1950’s, with a troubled beginning to their history. Flashforward sixty years, and a completely different company exists, thanks to Vincent Kennedy McMahon. Thanks to the third generation of McMahon to run the company, Vince took the company into new realms. Over a forty-year period, Vince eliminated any form of serious competition by either stealing talent or buying competition out. In today’s decade, Vince still is in charge with the help of Stephanie McMahon and her husband Triple H. This same process is taking place as WWE is snipping talent, only the best, from its limited competition. Some of these superstars have already become top faces of the company. As these superstars have succeeded, the company has succeeded as well, plowing a …show more content…
Currently WWE’s stock price is fluctuating around $27.00 compared the valuation result of $30.00. As I have done in most of the collegiate career in any valuation model I worked on, taking a conservative approach is my preferred method. None of the assumptions that were made were on the extreme side. Therefore, because of this approach, ultimately the value could be undervalued compared to a potential more aggressive design.
A second takeaway that was noticed was relating to the inconsistencies around the way WWE reported their financial information. For example, in the most recent years, WWE broke their revenue out into segments that included: media division, live events, consumer products, WWE studios, and corporate, with smaller subsegments making up each larger segment. Flashback to the 2010 reporting WWE had Live & TV, consumer, digital, and studios segments with no further breakout. There were also subtle differences such as: the level of detail surrounding depreciation, capital expenditures, interest rates, and factors that were used within the