EVC
Entravision Communications
$8.09
Platform & Compounding FCF
50%
Two-stage FCF DCF
Mild
·
Conviction
Overvalued
Trading 1.8% above fair value
You pay
$8.09
Bear
$6.49
Fair
$7.94
Bull
$9.22
Bear
$6.49
-19.7%
3% stage 1 growth, 12% discount
Fair
$7.94
-1.8%
6% stage 1 growth, 12% discount
Bull
$9.22
+13.9%
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
14.2x
Market is pricing in (growth)
6.0%
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 41% 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