The fair value of requested stock should be $99.54
* Note: Prices are in Million (M) USD.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $2,660 M
Debt : $15,830 M
EBITDA : $2,920 M
Net Debt (Debt - Cash): $13,170 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Communication Services
Industry: Entertainment
Based on industry, 3 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 7.42
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $1,224 M
Average Revenue: $18,367 M
Free Cash Flow to Revenue : 7 %
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $29,213 M
Revenue 4 Years Ago (2020-12-31): $25,285 M
Revenue Growth: 3%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $664 M
Share Count 5 Years Ago (2020-12-31): $618 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $1.58
Dividend Per Share (DPS): $0
Payout Ratio: 13%
Dividend Yield: 2%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 6%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $12
52-Week Low: $9
Threshold Price (15% Above 52-Week Low): $11
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $7,653 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 15 points to above Paramount Global Class B (PARA) stock.
Twenty Years Avg PE 13, Fair Value PE 12, Industry Based PE is 18 and Growth based PE is 15. Based on these all values average assigned is 14.50.
Value-Trades has assined P/E value 14.50. Since current year earning per share is $1.58.
The fair value of Paramount Global Class B (PARA) stock should be (14.50 x $1.58) = $22.91
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