EVC
Entravision Communications
$6.73
Platform & Compounding FCF
50%
Two-stage FCF DCF
Moderate
·
Conviction
Fair Value
Trading 15.3% below fair value
You pay
$6.73
Bear
$6.49
Fair
$7.94
Bull
$9.22
Bear
$6.49
-3.5%
3% stage 1 growth, 12% discount
Fair
$7.94
+18.0%
6% stage 1 growth, 12% discount
Bull
$9.22
+37.0%
8% stage 1 growth, 12% discount
Adjust Assumptions
5.8%
12.0%
3.0%
Key Value Driver
FCF growth rate (6% base case)
Terminal Value % of EV
31%
Implied Market Multiple
12.2x
Market is pricing in (growth)
3.9%
vs 5.8% base
Summary
Using a two-stage FCF DCF with 6% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $7.94 per share.
Warnings
This stock is 51% below its 52-week high, with weak or declining earnings. That combination often signals real trouble, even though the valuation below is based on other fundamentals.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions