Formula 1 had another banner year in 2024, with the world’s most popular racing series recently reporting $3.65 billion in annual revenue. That’s a 14% increase from F1’s $3.2 billion in 2023 revenue and the fourth consecutive year of top-line growth.

Formula 1 is seeing gains across the board. Last year, viewership, media rights, ticket sales, sponsorships, and hospitality experiences all increased. The sport’s 24-race schedule averaged over 85 million viewers across linear and digital platforms, and a recent Nielsen report estimates there are now over 750 million F1 fans worldwide.

This success has fundamentally changed Formula 1’s business. Cadillac and its ownership group recently agreed to pay a $450 million anti-dilution fee to become F1’s 11th team in 2026, agreeing to invest billions more in the development of their car.

Furthermore, luxury brand LVMH (think: Louis Vuitton, TAG Heuer, etc.) signed a major sponsorship deal this offseason that could be worth $1 billion over 10 years, and Formula 1 finished the year with $2.6 billion in cash and liquid investments on hand.

As a result, Formula 1’s stock has risen 29% in the last year and 244% over the last five years. Liberty Media purchased Formula 1 at an enterprise value of $8 billion in 2017, but the racing series now trades at an enterprise value of $30 billion, a 275% jump.

Full disclosure, I purchased F1 stock ($FWONK) in 2020. It’s an immaterial part of my portfolio, but I haven’t sold it because I think it will go higher (and I’ll tell you why)…