The fair value of requested stock should be $99.54
* Note: Prices are in Million (M) USD.
Description:
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $2,661 M
Debt : $14,501 M
EBITDA : $2,618 M
Net Debt (Debt - Cash): $11,840 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: NA
Industry: NA
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: 16.06
Since Forward PE Ratio is between 15 - 20, 3 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
Last 5 Years Average 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): $1.41
Dividend Per Share (DPS): $0
Payout Ratio: 14%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 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: $23
52-Week Low: $16
Threshold Price (15% Above 52-Week Low): $19
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: $8,478 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 12 points to above Paramount Global Class A (PARAA) stock.
Twenty Years Avg PE 13, Fair Value PE 12 and Growth based PE is 10. Based on these three values average assigned is 11.67.
Value-Trades has assined P/E value 11.67. Since current year earning per share is $1.41.
The fair value of Paramount Global Class A (PARAA) stock should be (11.67 x $1.41) = $16.45
