Cumulus Media own and operates radio stations in 90 United States media markets; and approximately 8,500 broadcast radio affiliates and various digital channels. The company was founded in 1997 and is based in Atlanta, Georgia.
CMLS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Cumulus Media Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Cumulus Media Inc ranked in the 90th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 2103% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for CMLS, they are:
8% of the company's capital comes from equity, which is greater than merely 2.7% of stocks in our cash flow based forecasting set.
Cumulus Media Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Consumer Cyclical), Cumulus Media Inc has a reliance on debt greater than 96.41% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SGC, WINA, LCUT, AIN, and CONN can be thought of as valuation peers to CMLS, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
The negative outlook for Cumulus reflects the impact of the economic recession arising from the coronavirus outbreak which Moody's expects will materially impact radio advertising revenue in the near term and lead to higher leverage levels and lower cash outflow from operations. As a result, the Speculative Grade Liquidity (SGL) rating was downgraded to SGL-3 from SGL-2.
In the current market session, Cumulus Media Inc. (NASDAQ: CMLS) is trading at $4.89, after a 13.99% increase. However, over the past month, the stock decreased by 17.26%, and in the past year, by 73.64%. Shareholders might be interested in knowing whether the stock is undervalued, even if the company is performing up to par in the current session.The stock is currently higher from its 52 week low by 63.00%. Assuming that all other factors are held constant, this could present itself as an opportunity for investors trying to diversify their portfolio with Broadcasting stocks, and capitalize on the lower share price observed over the year.The P/E ratio is used by long-term shareholders to assess the company's market performance against aggregate market data, historical earnings, and ...
In its efforts to reduce net leverage and strengthen balance sheet, Cumulus Media (CMLS) +2.1% AH completed the sale of an ~75-acre in Bethesda, Maryland to Toll Brothers (TOL) for gross proceeds of $74.1M.Post the transaction closure, marginal savings in real estate taxes are expected.Net proceeds from the sale will be used to pay down...
In this article you are going to find out whether hedge funds think Cumulus Media Inc (NASDAQ:CMLS) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks […]