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:
We started the process of determining a valid price forecast for Hemisphere Media Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Hemisphere Media Group Inc ranked in the 52th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 18.67%. In terms of the factors that were most noteworthy in this DCF analysis for HMTV, they are:
Hemisphere Media Group Inc's weighted average cost of capital (WACC) is 10%; for context, that number is higher than 77.77% 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 94.44% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than 74.52% of stocks in its sector (Consumer Cyclical).
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 HMTV, try TSCO, CLUB, TSQ, FRGI, and CSV.
Today's announcement and our comments may contain certain statements about Hemisphere that are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Please refer to our Company's most recent Annual Report on Form 10-K and our other public filings for a more complete discussion of forward-looking statements and the risk factors applicable to our Company. Forward-looking statements included herein are made as of the date hereof, and Hemisphere undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances.
Hemisphere Media Group, Inc. (NASDAQ: HMTV) ("Hemisphere" or the "Company"), the only publicly traded pure-play U.S. media company targeting the high-growth U.S. Hispanic and Latin American markets with leading broadcast and cable television and digital content platforms, today announced financial results for the first quarter ended March 31, 2020.
Hemisphere Media Group, Inc. (NASDAQ: HMTV) ("Hemisphere" or the "Company"), the only publicly traded pure-play U.S. media company targeting the high growth U.S. Hispanic and Latin American markets with leading broadcast and cable television and digital content platforms, plans to announce its first quarter 2020 financial results on Monday, May 11, 2020. The financial release will be posted to the Investor Relations section at www.hemispheretv.com before the market opens. The Company will host a conference call following the release at 10:00 AM Eastern Time.