Formula One Group (FWON.K) continues to draw investor attention after recent share performance, with the price closing at US$89.27 on 23 October 2026 and trailing returns showing mixed results across different holding periods.
Recent trading has been softer, with the 1-month share price return down 5.64% and the 90-day share price return down 9.21%. Formula One Group still shows a 3-year total shareholder return of 38.70% and a 5-year total shareholder return of 65.55%, which points to fading short-term momentum following a stronger multi-year run.
Scan how Formula One Group compares to other media and entertainment plays that may be setting up for the next leg higher with our hand picked 21 high quality undiscovered gems
Bulls view Formula One Group's recent pullback as a reset following solid multi year returns, while bears point to softer recent performance and question the valuation. Which side do the numbers favor next?
Most Popular Narrative: 34% Undervalued
On the most followed view of Formula One Group, a fair value of $135.00 sits well above the recent $89.27 close. This puts the focus on how resilient cash generation might support that gap over time.
Diversification into new revenue streams is gaining momentum, including digital products, the global rollout of F1 Arcade and immersive Grand Prix Plaza experiences, expanded licensing deals, and year-round hospitality. These initiatives reduce reliance on single income sources and are intended to support higher margins and earnings.
See why 1 investors see Formula One Group as 34% undervalued .
Result: Fair Value of $135.00 (UNDERVALUED)
Still, that bullish Formula One Group story can unravel if environmental scrutiny dents sponsor appetite, or if media fragmentation limits future broadcast and streaming deals.
Find out about the key risks to this Formula One Group narrative .
Another View On Formula One Group's Valuation
The story looks very different when switching from the fair value narrative to the simple P/E yardstick. Formula One Group trades on a P/E of 100.8x, versus 21.2x for the US Entertainment industry, 39x for peers, and a fair ratio estimate of 23x. That gap points to real valuation risk if sentiment cools or earnings disappoint.
To see how this richer price tag stacks up against the underlying numbers in more detail, take a look at See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Mixed views on Formula One Group's recent run make this a good moment to check the numbers yourself and decide where you stand. To weigh both the downside concerns and upside potential in one place, review the 4 key rewards and 2 important warning signs .
Looking for more Formula One Group style ideas?
If you only stop at Formula One Group, you risk missing other opportunities that fit your goals. Take a few minutes now and scan these focused idea lists.
-
Target steadier candidates with defensive qualities by reviewing a curated 30 resilient stocks with low risk scores that screens for resilience when conditions change.
-
Hunt for mispriced potential by working through a hand picked 29 high quality undervalued stocks that filters for quality plus a gap between price and fundamentals.
-
Prioritise balance sheet strength by using the list of solid balance sheet and fundamentals (24 results) to narrow in on businesses with healthier financial footing.
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.
Companies discussed in this article include FWONK .
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
