Analysis: Positive view on World Wrestling Entertainment (WWE)
Chart Courtesy of StockCharts.com.
WWE: Get in the ring!
By Katie Benner
May 20, 2005: 12:46 PM EDT
WWE has practically no debt, a big pile of cash, a stranglehold on a niche market and an annual dividend yield of about 4.5 percent. "It's a conservative investment, despite the flamboyant nature of the business," said Robert Routh, an analyst with Jefferies & Co.Read further:
"When WWE gets its star, the stock will start to rise again. And they've never had a problem finding a star."
It trades at a relatively high P/E ratio of 24 times WWE's estimated earnings for fiscal 2006. But if you take out the company's pile of cash, the P/E falls to about 15.4. Analysts said this is more than reasonable given that the company pretty much has a monopoly. "It would be too capital intensive for anyone to recreate what WWE has," said Routh.
CNN Money: WWE: Get in the ring!