VIAC
Paramount Global
$29.58
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 63.4% below fair value
You pay
$29.58
Bear
$64.71
Fair
$80.89
Bull
$97.07
Bear
$64.71
+118.8%
$3.60 × 18x P/E
Fair
$80.89
+173.5%
$3.60 × 22x P/E
Bull
$97.07
+228.1%
$3.60 × 27x P/E
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
8.2x
Summary
Applying a 22x P/E to adjusted EPS of $3.60, the base-case value is $80.89 per share.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples