Liberty Media Corporation Series A Liberty Formula One Common Stock (FWONA)

FairStock Score: 48/100 — MIXED

Key Financials

Strengths

• Generates $664 million in annual free cash flow (3.2% yield on market cap)
• Revenue growth of 37.9% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($40) with negative 104% margin of safety—limited downside protection

AI Analysis

Liberty Media Corporation Series A Liberty Formula One Common Stock is a mid-cap communication services company valued at $20.5 billion. The business generates $4.5 billion in annual revenue with a 1.9% net margin and $664 million in free cash flow. From a quality standpoint, Liberty shows Altman Z-Score of 2.7 in the grey zone and modest 8% ROE. On valuation, the stock is trading at a premium 35.3x earnings, with trades far above its Graham Number ($40) with no margin of safety. Growth dynamics show revenue growing at 37.9% and profit growth of 134.3%. Our composite FairStock Score of 48/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Liberty's 38% revenue growth trajectory could accelerate as it captures additional market share in the communication services sector. With $664 million in annual free cash flow (3.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 35x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer