As of Jan. 31, shares of the six pure-play groups were trading at a multiple of 7.3 times trailing 12-month EBITDA, down 32% from the 10.7 times from two years earlier, according to a study by M.C. Alcamo & Co. Investors remain "cautious" despite positive signs, says Alcamo President Michael Alcamo.
M.C. ALCAMO RESEARCH
Value of TV Firms Down A Third Since 2010
The worth of publicly traded TV station group has sunk by a third over the past two years, according to a study by the M.C. Alcamo & Co., a New York investment banker.
As of Jan. 31, shares of the six pure-play groups were trading at a multiple of 7.3 times trailing 12-month EBITDA, down 32% from the 10.7 times from two years earlier, the study said.
The Jan. 31 multiple of eight “integrated” companies with TV stations and other media assets was lower — at 6 times — but it was down just 25% from two years ago, it said.
“Investors remain cautious about broadcast, despite rising profitability, improved credit profiles, an excellent outlook for 2012 and audience trends all pointed in the right director,” said M.C. Alcamo President Michael Alcamo.
The six pure plays used in the study: Belo, Fisher, Gray, LIN, Nexstar and Sinclair.
The eight integrated companies: Entravision, Gannett, Journal Communications, Meredith, Media General, Saga Communications, Scripps and the Washington Post Co.
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Comments (1)
Eric Koepele says:
February 3, 2012 at 8:42 am
Are investors worried that TV station groups will suffer the same fate as newspaper groups? What’s the deal here?