Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2024-03-10), Paramount Global's Intrinsic Value: Projected FCF is $45.63. The stock price of Paramount Global is $10.925. Therefore, Paramount Global's Price-to-Intrinsic-Value-Projected-FCF of today is 0.2.
The historical rank and industry rank for Paramount Global's Intrinsic Value: Projected FCF or its related term are showing as below:
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Paramount Global was 1.46. The lowest was 0.24. And the median was 0.69.
Paramount Global Intrinsic Value: Projected FCF Historical Data
The historical data trend for Paramount Global's Intrinsic Value: Projected FCF can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Paramount Global Annual Data | |||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |
Intrinsic Value: Projected FCF | 57.01 | 58.57 | 51.77 | 49.00 | 45.63 |
Paramount Global Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
Intrinsic Value: Projected FCF | 49.00 | 45.73 | 43.65 | 44.27 | 45.63 |
Competitive Comparison
For the Entertainment subindustry, Paramount Global's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Paramount Global Price-to-Projected-FCF Distribution
For the Media - Diversified industry and Communication Services sector, Paramount Global's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where Paramount Global's Price-to-Projected-FCF falls into.
Paramount Global Intrinsic Value: Projected FCF Calculation
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)
In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):
Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)
Add all the Free Cash Flow together and divide 6 will get Paramount Global's Free Cash Flow(6 year avg) = $1,246.24.
Paramount Global's Intrinsic Value: Projected FCF for today is calculated as
Intrinsic Value: Projected FCF | = | (Growth Multiple | * | Free Cash Flow (6 year avg) | + | Total Stockholders Equity (Dec23) | * | 0.8) | / | Shares Outstanding (Diluted Average) |
= | (9.5203515959648 | * | 1246.24 | + | 22526 | * | 0.8) | / | 655.000 | |
= | 45.63 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Paramount Global(NAS:PARA) Intrinsic Value: Projected FCF Explanation
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
Paramount Global's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF | = | Share Price | / | Intrinsic Value: Projected FCF |
= | 10.925 | / | 45.626630493061 | |
= | 0.24 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Paramount Global Intrinsic Value: Projected FCF Related Terms
Thank you for viewing the detailed overview of Paramount Global's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
Paramount Global (NAS:PARA) Business Description
Industry
GURUFOCUS.COM »STOCK LIST »Communication Services » Media - Diversified » Paramount Global (NAS:PARA) » Definitions » Intrinsic Value: Projected FCF
Comparable Companies
NYSE:EDR NYSE:TKO NAS:ROKU NAS:NXST NYSE:MSGS NAS:LLYVA NAS:IQ NYSE:MANU NAS:PLAY NAS:BATRA NAS:NFLX NYSE:DIS XAMS:UMG NYSE:LYV NAS:WBD XPAR:BOL NAS:SIRI NAS:WMG NAS:FWONA NAS:NWSA
Traded in Other Exchanges
PARAP.PFD:USA PARAA:USA PARA:Peru PARA:Mexico 0HQM:UK 0VVB:Germany 0VV:Germany 0VVB:Germany 0VV:Germany 0VVB:Germany C1BS34:Brazil PARA:Austria
Address
1515 Broadway, New York, NY, USA, 10036
Website
Paramount Global is the rebranded recombination of CBS and Viacom that has created a media conglomerate with global scale. CBS contributed Showtime in addition to its television assets--the CBS television network, 28 local TV stations, and 50% of CW, a joint venture between CBS and WarnerMedia. Viacom brought several leading cable network properties, including Nickelodeon, MTV, BET, Comedy Central, VH1, CMT, and Paramount. Paramount Pictures produces original motion pictures and owns a library of 2,500 films, including the Mission: Impossible and Transformers series. Paramount operates a number of streaming services, most notably Paramount+ and Pluto TV.
Executives
Dawn Ostroff | director | 3100 OCEAN PARK BOULEVARD, SANTA MONICA CA 91405 |
Sumner M. Redstone National Amusem*nts Part B General Trust | director, 10 percent owner | 846 UNIVERSITY AVENUE, NORWORD MA 02062 |
National Amusem*nts Inc /md/ | director, 10 percent owner | 846 UNIVERSITY AVENUE, NORWOOD MA 02062 |
Naveen K. Chopra | officer: EVP, Chief Financial Officer | C/O 2160 GOLD STREET, SAN JOSE CA 95002 |
Linda M Griego | director | SOUTHWEST WATER CO, 624 SO. GRAND, STE 2900, LOS ANGELES CA 90017 |
Phillips Jr Charles E | director | 113 WEST 88TH STREET, NEW YORK NY 10024 |
Shari Redstone | director, officer: Vice Chair | C/O CBS CORPORATION, 51 WEST 52ND STREET, NEW YORK NY 10019 |
Frederick Terrell | director | 17 STATE STREET, NEW YORK NY 10004 |
Nicole Seligman | director | C/O VIACOM INC., 1515 BROADWAY, NEW YORK NY 10036 |
Christina Spade | officer: EVP, Chief Financial Officer | 11 PENN PLAZA, NEW YORK NY 10001 |
Barbara M Byrne | director | C/O CBS CORPORATION, 51 WEST 52ND STREET, NEW YORK NY 10019 |
Christa A Dalimonte | officer: EVP, General Counsel & Secy | C/O VIACOM INC., 1515 BROADWAY, NEW YORK NY 10036 |
Ronald L Nelson | director | |
Judith Mchale | director | C/O RALPH LAUREN CORPORATION, 650 MADISON AVENUE, NEW YORK NY 10022 |
Robert M Bakish | director, officer: President and CEO | AVID TECHNOLOGY, INC., 75 NETWORK DRIVE, BURLINGTON MA 01803 |
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