Paramount Global Stock Fair Value – Paramount Global Shake-Up Could Lead to Sale of Paramount+
October 25, 2023
🌥️Trending News
A potential sale of Paramount+ could be a consequence of the recent shake-up at Paramount Global ($NASDAQ:PARA). Paramount Global is a leading entertainment company, headquartered in Los Angeles, that produces, finances and distributes films, television programs and other entertainment-related content. As part of this process, Paramount Global is considering selling off its streaming service, Paramount+, which could lead to the company’s streaming operations becoming part of a larger global streaming business. The sale could include the entire streaming business or just parts of it, depending on the negotiations.
Price History
On Tuesday, PARAMOUNT GLOBAL stock opened at $11.3 and closed at $11.2, down by 0.4% from previous closing price of 11.2. This follows news that the company is set to undergo a shakeup and may lead to the sale of its streaming service, Paramount+. The shakeup is expected to involve a restructuring of the company’s operations and could result in some of its divisions being sold off. It is unclear at this stage which divisions may be affected or how much the sale could be worth.
However, it is likely to have an impact on the stock’s performance going forward. Investors will be closely monitoring the situation as it develops, in order to understand how the company’s future strategy may be impacted. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Paramount Global. More…
| Total Revenues | Net Income | Net Margin |
| 29.93k | -1.17k | -4.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Paramount Global. More…
| Operations | Investing | Financing |
| -773 | -495 | -1.03k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Paramount Global. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 55.36k | 33.2k | 33.26 |
Key Ratios Snapshot
Some of the financial key ratios for Paramount Global are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.1% | -14.6% | -2.0% |
| FCF Margin | ROE | ROA |
| -3.7% | -1.7% | -0.7% |
Analysis – Paramount Global Stock Fair Value
At GoodWhale, we have conducted an in-depth analysis of PARAMOUNT GLOBAL‘s fundamentals and have made the following assessment. Our proprietary Valuation Line, which uses multiple methodologies to calculate a fair value for the stock, indicates that the fair value of PARAMOUNT GLOBAL share is around $16.5. Currently, the stock is traded at $11.2, which implies that it is undervalued by 32.0%. This presents an attractive opportunity for investors to add this stock to their portfolio. More…
Peers
Paramount Global is one of the leading entertainment companies in the world. It has a strong presence in the film and television industry and competes with the likes of The Walt Disney Co, Lions Gate Entertainment Corp, and Netflix Inc. The company has a diversified portfolio of businesses that includes film production and distribution, television programming and syndication, home entertainment, theme parks, and consumer products.
– The Walt Disney Co ($NYSE:DIS)
Walt Disney Co is a publicly traded company with a market cap of 186.02B as of 2022. The company has a return on equity of 4.53%. Walt Disney Co is a diversified entertainment company that operates in four business segments: media networks, parks and resorts, studio entertainment, and consumer products. The company was founded in 1923 and is headquartered in Burbank, California.
– Lions Gate Entertainment Corp ($NYSE:LGF.B)
Lions Gate Entertainment Corp is a Canadian entertainment company with a market cap of 1.71B as of 2022. The company has a Return on Equity of -1.61%. Lions Gate is a leading global entertainment company with a strong and diversified presence in motion picture production and distribution, television programming and syndication, home entertainment, digital distribution, new channel platforms and international distribution and sales. The company’s motion picture business includes the production, financing and distribution of motion pictures through its Lionsgate and Summit Entertainment labels, as well as through its Pantelion Films joint venture with Televisa. Lionsgate’s television business includes the production, financing and distribution of television series, telefilms and other programming through its Lionsgate Television, Lionsgate UK and Debmar-Mercury subsidiaries.
– Netflix Inc ($NASDAQ:NFLX)
Netflix, Inc. is an American publicly traded streaming entertainment company founded in 1997 by Reed Hastings and Marc Randolph. The company’s primary business is a subscription-based streaming service offering online streaming from a library of films and television series, including those produced in-house.
Summary
Amidst the ongoing disruptions caused by the pandemic, Paramount Global has announced a major shake-up in its business strategies. This includes potential plans to divest its streaming service – Paramount+. Investors are now analyzing the company’s prospects and future potential as the changes come into effect. Paramount Global has seen a decline in its share prices since the announcement, indicating that investors have yet to be convinced of the effectiveness of the changes.
Analysts are carefully assessing the company’s future growth prospects, factoring in the potential financial gains that could come from the sale of Paramount+ and other restructuring options. Therefore, investors should conduct their own due diligence before investing in Paramount Global, considering how the company’s new strategies might impact their potential profits.
