Viacom: Underappreciated Media Networks, Good Buyback Program Make For Limited Downside
- Recent declines in the share price reflect fears over stagnating revenue and a changing content consumption landscape.
- Flat-lining revenue represents shifting sales into higher margin segments - from Filmed Entertainment to Media Networks.
- Despite legitimate concerns, Viacom's present valuation offers the possibility of solid risk-adjusted returns. By my estimation, 8-14% CAGR over the next 5 years.