Robert Way
It's kind of a bittersweet thing to open a relatively positive article with, but my father passed away last year. One of the last TV shows he and I watched together was Tulsa King, a show which is on Paramount+. We both
Paramount Global: A Lot Of Uncertainties, But There's Value To Be Had
Summary
- Paramount Global is undervalued with a price/book ratio of 0.43, despite its well-known brands and extensive film and TV library.
- PARA's current ratio of 1.3 indicates a good cash position and manageable debt, essential amid near-term GAAP losses.
- The Company's profitability declined in 2023 due to falling ad revenue and streaming losses, but estimates suggest a return to profitability with a P/E ratio of 6.91.
- The potential Skydance merger offers solid returns, but even without it, Paramount's expected profitability and modest dividend make it a buy with caution.
I’m Jason Ditz and I have 20 years of experience in foreign policy research. My work has appeared in Forbes, Toronto Star, Minneapolis Star-Tribune, Providence Journal, Washington Times and the Detroit Free Press, as well as American Conservative Magazine and the Quincy Institute for Responsible Statecraft. I have been writing investment analysis, with a focus on deep-discount value plays, for over 25 years. I I got my start analyzing securities for a stock-picking contest on the now defunct StockJungle in college. After winning one of the top prizes for quarterly performance, I was hired to write a monthly article about micro-cap stocks, again with a value perspective. After StockJungle went belly-up, with its focus on momentum investing, I started to take a close interest in the contrarian investment philosophy of David Dreman. I began writing for Motley Fool and ultimately Seeking Alpha. My goal is to find underappreciated companies with a focus on returning value to investors.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of PARA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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