Hemisphere Media Group owns and operates cable and television broadcasting networks in the United States, as well as a Spanish-language cable movie network with approximately 15 million subscribers in the United States, Latin America, and Canada. The company was founded in 2013 and is based in Coral Gables, Florida.
HMTV Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Hemisphere Media Group Inc. To summarize, we found that Hemisphere Media Group Inc ranked in the 51th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Hemisphere Media Group Inc ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 0.72; that's higher than merely 24.72% of US stocks in the Consumer Cyclical sector that have positive free cash flow.
Hemisphere Media Group Inc's weighted average cost of capital (WACC) is 10%; for context, that number is higher than 77.53% of tickers in our DCF set.
Hemisphere Media Group Inc's effective tax rate, as measured by taxes paid relative to net income, is at 48 -- greater than 94.52% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BYD, FRGI, IHG, THO, and CCK can be thought of as valuation peers to HMTV, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
We are still in an overall bull market and many stocks that smart money investors were piling into surged through October 17th. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 45% and 39% respectively. Hedge funds' top 3 stock picks returned 34.4% this year and beat the S&P […]