FWONA

Liberty Media's Formula 1 tracking stock owns two scarce, globally franchised motorsport assets. FY2025 revenue grew 22.7% to $4.48B as Formula 1 climbed to $3,873M and the July 2025 MotoGP acquisition added $325M; operating income doubled to $577M and Adjusted OIBDA reached $1,068M. These are durable, contractually recurring media/sponsorship/race-promotion franchises with limited direct competition, and operating cash flow of $908M (+60.1%) shows the model converts well to cash.

The problem is price. At $84.08 the stock trades at 442.5x the FY diluted EPS of $0.19, a figure depressed by heavy depreciation/amortization ($393M) and interest expense ($249M, up $41M) rather than by weak operations — but it still means GAAP earnings provide essentially no valuation support. Net income of $555M against $7.76B of equity is only a 7.2% ROE. The MotoGP deal lifted long-term debt 70.2% to $5.05B and drew cash down 59.9% to $1.05B, so the balance sheet is more levered than a year ago even at a still-manageable 0.90x liabilities/equity.