Entravision Communications Corporation logo EVC - Entravision Communications Corporation

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 2
HOLD 3
SELL 0
STRONG
SELL
0
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Leveraged Infrastructure 80% confidence

Primary model: EV/EBITDA × Default Multiple

Valuation Signal Overvalued Mild
Trading 0.0% below fair value
Current Price $9.84
Bear Case $0.00 100.0% downside ($0.00 - $9.84) / $9.84 = -100.0% EBITDA $0B × 6.3x − $0B debt
Fair Value $0.00 100.0% downside ($0.00 - $9.84) / $9.84 = -100.0% EBITDA $0B × 7.9x − $0B debt
Bull Case $0.00 100.0% downside ($0.00 - $9.84) / $9.84 = -100.0% EBITDA $0B × 9.5x − $0B debt

Adjust Assumptions

7.9x

Key Value Driver

EV/EBITDA multiple (7.9x) vs. 11.7× leverage

Implied Market Multiple 82.0x

Plain-Language Summary

At 7.9x EV/EBITDA on $0B EBITDA, enterprise value is $0B. After subtracting $0B net debt, equity value is $0.00 per share.

Warnings

Debt is 11.7x annual operating profit. Because the company carries so much debt, even small shifts in business value cause big swings in the stock price.
Operating profit only covers interest payments 0.9 times over. If the company needs to refinance at higher rates, it could struggle to service its debt.
Only 27% of operating profit turns into actual cash for shareholders. Big investments and interest payments consume most of what the business earns.
We value this business based on total operating profit relative to total enterprise value (debt + equity). Profit-per-share metrics are unreliable when debt makes up most of the company's value.

Key Risks

  • Debt refinancing at higher rates compresses equity value quickly
  • EBITDA flatters — capex, interest, and taxes eat the cash flow
  • Cord-cutting and wireless substitution are structural headwinds for cable