Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, newly public football club operator Manchester United (NYSE: MANU ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Manchester United's business and see what CAPS investors are saying about the stock right now.
Manchester United facts
|Headquarters (founded)||Manchester, U.K. (1990)|
|Market Cap||$2.3 billion|
|Trailing-12-Month Revenue||$266.6 million|
|Management||CEO David Gill
COO Michael Bolingbroke
|Trailing-12-Month Return on Equity||40.6%|
|Cash/Debt||$151.0 million / $459 million|
|Competitors||Olympique Lyonnais Groupe|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 87 members who have rated Manchester United believe the stock will underperform the S&P 500 going forward.
As it becomes clear that teams require monster money, and other teams -- Man City, Chelsea, Liverpool, Tottenham, PSG, etc. ramp up spending, and ramp up their global marketing operations, the allure of Man United will fade. Their dominance was earned through excellent management -- and a massive financial advantage. That will be diluted more and more. A few billion seems like a high enough valuation to me.
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