Gannett Company operates 100 daily publications and related digital platforms in the United States and the United Kingdom; and approximately 400 non-daily local publications in the United States and approximately 125 such titles in the United Kingdom. The company was established in 2014 and is based in McLean, Virginia.
GCI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Gannett Co Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Gannett Co Inc ranked in the 9th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 94.17%. In terms of the factors that were most noteworthy in this DCF analysis for GCI, they are:
The company's balance sheet shows it gets 8% of its capital from equity, and 92% of its capital from debt. Its equity weight surpasses that of just 4.12% of free cash flow generating stocks in the Consumer Cyclical sector.
Its compound free cash flow growth rate, as measured over the past 5.16 years, is -0.34% -- higher than only 4.58% of stocks in our DCF forecasting set.
Gannett Co Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.28. This coverage rate is greater than that of merely 16.59% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as GCI, try MLCO, SBUX, SYPR, WING, and BLBD.
MCLEAN, Va.--(BUSINESS WIRE)--Gannett Co., Inc (NYSE: GCI) today launched “Rebuilding America,” an unprecedented national examination of how America’s economy is rebooting after nearly three months as states reopen for business. This ambitious project involving USA TODAY and Gannett’s 260 daily local news sites will give a coast-to-coast view of the country’s “new economic normal,” as told through the industries powering the national, regional and local economies. Stories will debut on Gannett-
ViacomCBS Inc is cutting up to 400 employees across CBS as part of its plan to save $750 million from its merger with CBS, a source familiar with the matter said on Thursday. Digital and local media companies including Atlantic Media, Vice Media, Gannett Co Inc and Tribune Publishing Co have slashed jobs since the start of the coronavirus pandemic due to drops in ad revenues adding to an declining industry which has seen employment drop by 23% between 2008 and 2019, according to the Pew Research Center. "We are restructuring various operations at CBS as part our ongoing integration with Viacom, and to adapt to changes in our business, including those related to COVID-19," a CBS spokesman said in a statement.
Gannett Co., Inc (NYSE: GCI) today launched "Rebuilding America," an unprecedented national examination of how America’s economy is rebooting after nearly three months as states reopen for business. This ambitious project involving USA TODAY and Gannett’s 260 daily local news sites will give a coast-to-coast view of the country’s "new economic normal," as told through the industries powering the national, regional and local economies. Stories will debut on Gannett-owned digital sites beginning today and appear in print editions on May 31 with a nationwide narrative of what consumers, companies and taxpayers can expect as the American economy begins to accelerate again.