Television Broadcasting Stations
Paramount Global operates as a media and entertainment company worldwide. The company operates through TV Media, Direct-to-Consumer, and Filmed Entertainment segments. Its TV Media segment operates domestic and international broadcast networks, including CBS Television Network, Network 10, Channel 5, Telefe, and Chilevisión; and cable networks comprising Paramount Media Networks, Nickelodeon, BET Media Group, and CBS Sports. The company's Direct-to-Consumer segment provides portfolio of domestic and international pay and free streaming services, including Paramount+, Pluto TV, Showtime Networks' subscription streaming service, BET+, and Noggin. The company's Filmed Entertainment segment produces and acquires films, series, and short-form content for release; media licensing around the world, including in theaters, on streaming services, on television, digital home entertainment, and DVDs; and operates portfolio of Paramount Pictures, Paramount Players, Paramount Animation, Nickelodeon Studio, Awesomeness, and Miramax. The company was formerly known as ViacomCBS Inc. and changed its name to Paramount Global in February 2022. The company was founded in 1914 and is headquartered in New York, New York. Paramount Global operates as a subsidiary of National Amusements, Inc.
Discounted Cash Flow Valuation of Paramount Global
Growth
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Discount
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Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $805M | $742.7M | $685.1M | $632.1M | $583.1M | $538M | $496.3M | $457.9M | $422.4M | $389.7M | $359.5M | $3.595B |
DCF | $645.8M | $518.1M | $415.6M | $333.4M | $267.5M | $214.6M | $172.1M | $138.1M | $110.8M | $88.87M | $888.7M | |
Value | $3.793B |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 10% | 9.6% | 2.6% | 14% | 12% | 9.6% | 16% | 3.5% | -2.2% | -0.34% |
ROA | 10% | 11% | 12% | 13% | 8.7% | 7.9% | 11% | 4% | -0.62% | 0.92% |
ROE | 25% | 15% | 4.2% | 19% | 25% | 15% | 20% | 4.4% | -2.9% | -0.46% |
The average Net Margin over the past 5 years is +8.66%.
The trend of Net Margin over the past 5 years is -2.8%.
The average ROA over the past 5 years is +7.24%.
The trend of ROA over the past 5 years is -2.22%.
The average ROE over the past 5 years is +13.29%.
The trend of ROE over the past 5 years is -4.7%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | 6.89 | 5.99 | 14.45 | 15.37 | 21.34 | 10.02 | 29.56 | -114.00 | 99.33 | 18.15 |
Debt Equity | 1.52 | 1.08 | 1.18 | 1.85 | 1.41 | 1.23 | 0.77 | 0.67 | 0.63 | 0.65 |
MIN | ||||||||||
Graham Stability | - | - | 19% | 100% | 100% | 100% | 100% | 31% | -25% | -25% |
The Debt/FCF trailing twelve month is 18.15.
The trend of Debt/FCF over the past 5 years is 0.95.
Graham’s Stability measure stands at -0.25.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
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Revenue | 12% | 15% | 5.5% | -1.7% | 0.43% |
Net Income | - | - | - | - | 0.78% |
Stockholders Equity | 16% | 17% | 13% | -2.4% | 0.17% |
FCF | -28% | -35% | -58% | - | -0.86% |
The Revenue CAGR over the past 5 years is +15.36%.
The trend of Revenue growth rate over the past 5 years is +0.43%.
The Earnings CAGR over the past 5 years is -.
The trend of Earnings growth rate over the past 5 years is +0.78%.
The Equity CAGR over the past 5 years is +17.02%.
The trend of Equity growth rate over the past 5 years is +0.17%.
The FCF CAGR over the past 5 years is -34.94%.
The trend of FCF growth rate over the past 5 years is -0.86%.