Another Overvalued IPO: Endeavor Group

Another Overvalued IPO: Endeavor Group

Share to Linkedin A man browses hats displaying the Ultimate Fighting Championship (UFC) logo at a merchandise kiosk ... [+] during UFC Fight Night at Cotai Arena, inside the Venetian Macao resort and casino, operated by Sands China Ltd., a unit of Las Vegas Sands Corp., in Macau, China, on Saturday, Aug. 23, 2014. UFC, the largest pay-per-view event provider, broadcasts to more than 800 million homes worldwide. Photographer: Brent Lewin/Bloomberg After withdrawing its IPO the day before it was expected to trade in September 2019, Endeavor Group Holdings (EDR), a talent agency turned entertainment and sports provider, is planning to IPO on April 29, 2021. At the midpoint of its price range ($23. 50/share), Endeavor is valued at ~$10 billion and earns an unattractive rating. While going public in today's reckless meme stock-driven investing environment is good for the company's insiders, it's not good for investors. Endeavor needs this IPO more than investors do. Endeavor will test investors' appetite for overvalued and over-hyped IPOs. No matter how many Elon Musks it adds to its board, Endeavor's expected valuation of $10 billion is in nosebleed territory. A $10 billion valuation is too high because it implies the company will achieve