PARA Valuation

Paramount Global

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12.010

-1.29(-9.699%)1D

Overview
Forecast
Valuation
Earnings

PARA Relative Valuation

PARA's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, PARA is overvalued; if below, it's undervalued.

Historical Valuation

Paramount Global (PARA) is now in the Fair zone, suggesting that its current forward PE ratio of 10.13 is considered Fairly compared with the five-year average of 13.50. The fair price of Paramount Global (PARA) is between 9.16 to 25.47 according to relative valuation methord.

Relative Value

Fair Zone

9.16-25.47

Current Price：13.30

Fair

10.13

Trailing

Forward

8.00

EV/EBITDA

Paramount Global. (PARA) has a current EV/EBITDA of 8.00. The 5-year average EV/EBITDA is 9.19. The thresholds are as follows: Strongly Undervalued below 5.80, Undervalued between 5.80 and 7.50, Fairly Valued between 10.89 and 7.50, Overvalued between 10.89 and 12.58, and Strongly Overvalued above 12.58. The current Forward EV/EBITDA of 8.00 falls within the Historic Trend Line -Fairly Valued range.

9.46

EV/EBIT

Paramount Global. (PARA) has a current EV/EBIT of 9.46. The 5-year average EV/EBIT is 10.12. The thresholds are as follows: Strongly Undervalued below 2.38, Undervalued between 2.38 and 6.25, Fairly Valued between 13.99 and 6.25, Overvalued between 13.99 and 17.87, and Strongly Overvalued above 17.87. The current Forward EV/EBIT of 9.46 falls within the Historic Trend Line -Fairly Valued range.

0.32

Paramount Global. (PARA) has a current PS of 0.32. The 5-year average PS is 0.54. The thresholds are as follows: Strongly Undervalued below -0.09, Undervalued between -0.09 and 0.22, Fairly Valued between 0.85 and 0.22, Overvalued between 0.85 and 1.16, and Strongly Overvalued above 1.16. The current Forward PS of 0.32 falls within the Historic Trend Line -Fairly Valued range.

6.85

P/OCF

Paramount Global. (PARA) has a current P/OCF of 6.85. The 5-year average P/OCF is 16.85. The thresholds are as follows: Strongly Undervalued below -34.54, Undervalued between -34.54 and -8.84, Fairly Valued between 42.54 and -8.84, Overvalued between 42.54 and 68.24, and Strongly Overvalued above 68.24. The current Forward P/OCF of 6.85 falls within the Historic Trend Line -Fairly Valued range.

13.57

P/FCF

Paramount Global. (PARA) has a current P/FCF of 13.57. The 5-year average P/FCF is 92.67. The thresholds are as follows: Strongly Undervalued below -253.32, Undervalued between -253.32 and -80.32, Fairly Valued between 265.66 and -80.32, Overvalued between 265.66 and 438.66, and Strongly Overvalued above 438.66. The current Forward P/FCF of 13.57 falls within the Historic Trend Line -Fairly Valued range.

Paramount Global (PARA) has a current Price-to-Book (P/B) ratio of 0.54. Compared to its 3-year average P/B ratio of 0.47 , the current P/B ratio is approximately 14.05% higher. Relative to its 5-year average P/B ratio of 0.81, the current P/B ratio is about -33.45% higher. Paramount Global (PARA) has a Forward Free Cash Flow (FCF) yield of approximately 4.38%. Compared to its 3-year average FCF yield of 1.17%, the current FCF yield is approximately 273.16% lower. Relative to its 5-year average FCF yield of 2.88% , the current FCF yield is about 52.22% lower.

0.54

P/B

Median3y

0.47

Median5y

0.81

4.38

FCF Yield

Median3y

1.17

Median5y

2.88

Competitors Valuation Multiple

The average P/S ratio for PARA's competitors is 2.46, providing a benchmark for relative valuation. Paramount Global Corp (PARA) exhibits a P/S ratio of 0.32, which is -86.89% above the industry average. Given its robust revenue growth of -6.42%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Sirius XM Holdings Inc

Nexstar Media Group Inc

Performance Decomposition

Market capitalization of PARA increased by 17.54% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -0.63 to -1.61.

The secondary factor is the Revenue Growth, contributed -6.42%to the performance.

Overall, the performance of PARA in the past 1 year is driven by P/E Change. Which is more unsustainable.

-6.42%

7.69B → 7.19B

Revenue Growth

-131.11%

-7.20 → 2.24

Margin Expansion

155.07%

-0.63 → -1.61

P/E Change

17.54%