The fair value of requested stock should be $99.54
* Note: Prices are in Million (M) USD.
Description:
Nexstar Media Group, Inc., a broadcast television and digital media company, focuses on the acquisition, development and operation of television stations and interactive community websites and digital media services in the United States. The company is headquartered in Irving, Texas.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $144 M
Debt : $6,399 M
EBITDA : $1,803 M
Net Debt (Debt - Cash): $6,255 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Consumer Cyclical
Industry: Broadcasting - TV
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: 11.19
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: $345 M
Average Revenue: $1,918 M
Free Cash Flow to Revenue : 18 %
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $5,407 M
Revenue 4 Years Ago (2020-12-31): $4,501 M
Last 5 Years Average Revenue Growth: 4%
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): $33 M
Share Count 5 Years Ago (2020-12-31): $47 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $15.23
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 5%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is greater than 4, 4 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 555%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $170
52-Week Low: $142
Threshold Price (15% Above 52-Week Low): $163
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: $4,977 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 25 points to above Nexstar Broadcasting Group Inc (NXST) stock.
Twenty Years Avg PE 9, Fair Value PE 15, Industry Based PE is 15 and Growth based PE is 10. Based on these all values average assigned is 12.25.
Value-Trades has assined P/E value 12.25. Since current year earning per share is $15.23.
The fair value of Nexstar Broadcasting Group Inc (NXST) stock should be (12.25 x $15.23) = $186.57
