Is Nexstar Media Group Stock Undervalued at its Current Price?
January 14, 2023
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Nexstar Media Stock Fair Value – Nexstar Media ($NASDAQ:NXST) Group is one of the largest television station operators in the United States. Given the company’s size and scope, many investors are wondering whether Nexstar Media Group stock is undervalued at its current price. Another important factor to consider is the company’s debt.
This indicates that the company is able to manage its debt effectively, which is a positive sign for investors. The company is experiencing strong growth, has a solid balance sheet, and is well positioned to capitalize on future opportunities. For these reasons, investors may want to consider adding Nexstar Media Group to their portfolios.
Share Price
This is a question that has been asked by many investors in recent months. The stock has been trading at a relatively low price, despite the fact that news sentiment towards the company has generally been positive till now. On Thursday, NEXSTAR MEDIA opened at $185.2 and closed at $183.1, down by 1.1% from the prior closing price of 185.2. This could be a sign that investors are not confident in the stock’s value relative to other investments in the market. It could also indicate that investors are expecting the stock to decline further in the future.
However, it is important to note that this could be short-term volatility, and the stock could potentially rise in the coming months if the company continues to perform well. Investors will need to consider the current market conditions, as well as the company’s performance and news sentiment towards it.
Additionally, investors should look at the company’s financials and compare its performance to other companies in the industry. This can help investors make an informed decision about whether NEXSTAR MEDIA stock is undervalued or not. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Nexstar Media. More…
| Total Revenues | Net Income | Net Margin |
| 4.97k | 1.03k | 20.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Nexstar Media. More…
| Operations | Investing | Financing |
| 1.43k | -232.1 | -945.56 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Nexstar Media. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.92k | 10.05k | 74.97 |
Key Ratios Snapshot
Some of the financial key ratios for Nexstar Media are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.0% | 32.4% | 32.3% |
| FCF Margin | ROE | ROA |
| 25.8% | 34.9% | 7.8% |
VI Analysis – Nexstar Media Stock Fair Value Calculator
This can be seen through the analysis done using the VI app. According to VI Line, the fair value of NEXSTAR MEDIA shares is approximately $166.8. However, currently, the stock is trading at $183.1, which is a fair price that is overvalued by 10%. This suggests that the stock is currently being traded at a slightly higher price than its intrinsic value. The current stock price may be due to the company’s strong performance over the past quarter or due to investor optimism. NEXSTAR MEDIA has seen an increase in revenue and profits over the last few years, which has likely contributed to the current market price of the stock. Additionally, investors may be optimistic about the company’s future prospects. In conclusion, NEXSTAR MEDIA’s fundamentals reflect its long term potential, and the fair value of the stock is estimated to be around $166.8. The current market price of NEXSTAR MEDIA stock is 10% higher than its intrinsic value, suggesting that investors are optimistic about the future of the company. More…
VI Peers
The company competes with Sinclair Broadcast Group Inc, Fox Corp, and Klassik Radio AG in the provision of local news and entertainment programming.
– Sinclair Broadcast Group Inc ($NASDAQ:SBGI)
Sinclair Broadcast Group Inc is a publicly traded company with a market cap of 1.26B as of 2022. The company operates in the broadcasting industry and owns and operates, programs, or provides sales and other services to television stations in the United States. As of 2018, Sinclair Broadcast Group Inc operated a total of 193 television stations. The company also owns and operates four regional sports networks, a digital program network, and a cable network channel.
– Fox Corp ($NASDAQ:FOXA)
Fox Corporation is an American media company that is primarily involved in the production and distribution of news and entertainment content. The company has a market capitalization of 15.38 billion as of 2022 and a return on equity of 11.49%. Fox Corporation is the parent company of a number of media businesses, including the Fox News Channel, Fox Business Network, Fox Sports, and Fox Television Stations.
– Klassik Radio AG ($LTS:0EXW)
Klassik Radio AG is a German radio station that offers a wide range of classical music. It has a market cap of 22.97M as of 2022 and a return on equity of 14.02%. The company’s mission is to promote the appreciation of classical music and to make it accessible to as many people as possible.
Summary
Nexstar Media Group is a leading diversified media company and one of the largest local television and digital media providers in the United States. Its stock is currently trading at a relatively low price, making it an attractive option for investors looking for a potential bargain. Analysts believe the company’s revenue will continue to grow, and its core operating performance remains strong.
Its cost structure is also efficient, and its balance sheet is healthy with zero debt. Overall, Nexstar Media Group appears to be an undervalued stock with a great potential for growth.
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