E W Scripps (SSP:NAS) Fundamental Valuation Report

E W Scripps (SSP:NAS) Fundamental Valuation Report

Fundamental Valuation Report

E W Scripps(SSP:NAS)

Communication Services:Broadcasting

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$19.78 (USD) 05/12/2021

Weighted Valuation
$21.28 (USD)

Overall Rating
Undervalued by 7.6%

Valuation Models Adjusted Book Value: $21.28 (USD)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation
According to Analyst consensus at $29.00 this stock is Undervalued

Company Overview (SSP:NAS USD)

Price 19.78
Range 19.68 – 20.52
52 week 6.75 – 24.33
Open 20.33
Vol / Avg. 406519/405510
Mkt cap 1.63B
P/E 10.87
Div/yield 0.20/0.01
EPS 3.21
Shares 82.28M
Beta 2.12

Company Description

The E W Scripps Co is a media enterprise with interests in local and national media brands. It owns and operates a collection of daily and community newspapers, primarily in medium-sized cities in the southern and western portions of the United States. The company’s operating segment includes Local Media, National Media and Other. It generates maximum revenue from the Local Media segment. The Local Media segment includes approximately 60 local broadcast stations and their related digital operations. Its National Media segment includes a collection of national brands.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for SSP:NAS

Using a discounted cash flow model we generated an intrinsic value of $104.22 (USD) for SSP:NAS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

SSP:NAS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $104.22 1% 5% 1% 5%
WACC (or Ke) 7.93 $130.36 $86.75
Terminal Growth Rate 2.90 $88.29 $128.06
Tax Rate 0.27 $111.96 $96.48
Cash Flow 731,601,507 $98.29 $110.15
Capital Expenditures -41,013,800 $103.90 $104.54
Long Term Debt 0 $104.22 $104.22

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $37.71 (USD) for SSP:NAS. We also generated a valuation of $32.14 (USD) using other metrics and comparables.
The comparable companies were Chicken Soup for the Soul (CSSE:NAS), Liberty Formula One Group (FWONK:NAS), FuboTV (FUBO:NYS), AMC Networks (AMCX:NAS) and iHeartMedia (IHRT:NAS).

Company SSP:NAS End Date Value
Earnings/Share $3.29 (USD)
Book Value/Share $14.11 (USD)
Sales/Share $24.19 (USD)
Cash Flow/Share $3.82 (USD)
EBITDA/Share $4.99 (USD)
Price Based on Comps Adjustment Factor (%)
$27.87 (USD) 0.0
$71.47 (USD) -80.3
$98.07 (USD) -27.6
$1.63 (USD) 0.0
$0.00 (USD) 74.4
SSP:NAS Ratios Used Average Values CSSE:NAS FWONK:NAS FUBO:NYS AMCX:NAS IHRT:NAS
10.87 PE Ratio 8.47 0.00 0.00 0.00 8.47 0.00
1.40 PB Ratio 7.38 16.65 1.54 11.98 2.89 3.85
0.82 PS Ratio 4.05 6.30 8.09 3.96 0.81 1.12
5.17 PCF Ratio 9.91 0.00 0.00 0.00 3.40 16.42
11.40 EV to EBITDA 32.99 72.09 52.68 0.00 2.64 4.53

Multiples

Using a multiples approach we generated a valuation of  $54.97 (USD) for SSP:NAS

Company SSP:NAS End Date Value
Earnings/Share $3.29 (USD)
Book Value/Share $14.11 (USD)
Sales/Share $24.19 (USD)
Cash Flow/Share $3.82 (USD)
EBITDA/Share $4.99 (USD)
Price Based on Comps Adjustment Factor
$92.61 (USD) 0
$19.59 (USD) 0
$29.92 (USD) 0
$58.07 (USD) 0
$74.68 (USD) 0
Ratios Ratio Average
PE Ratio 28.15
PB Ratio 1.39
PS Ratio 1.24
PCF Ratio 15.18
EV to EBITDA 14.97

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  SSP:NAS for the last 10 years was  1.50

We ran the Adjusted Book Value for  SSP:NAS and generated a book value of  $14.23 (USD)
By multiplying these we get an adjusted valuation of  $21.28 (USD)

Analyst Data

In the Stockcalc database there are 1 analysts that provide a valuation for SSP:NAS. The 1 analysts have a concensus valuation for SSP:NAS for 2021 of $29.00 (USD).

SSP:NAS E W Scripps

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
1 0 0 5.0000 Buy 2021-5-11

Current Price: 19.78 USD

Analyst Consensus
USD Millions 2021 2022
Mean EPS 1.84 3.54
# EPS Analysts 1 1
Mean Revenue 2,263.50 2,682.40
# Revenue Analysts 1 1
Mean Target Price 29.00
Mean Cash Flow
Mean EBITDA 507.00 781.30
Mean Net Income 136.40 396.60
Mean Debt Outstanding
Mean Tax Rate 31.90 19.60
Mean Growth Rate
Mean Capital Expenditure 67.40 60.00

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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