Lions Gate Entertainment Corporation Class B Non-Voting Shares (LGF.B) Company Bio
Lions Gate Entertainment engages in motion picture production and distribution, television programming and syndication, home entertainment, family entertainment, digital distribution, channel platforms, and international distribution and sales activities. The company operates through two segments, Motion Pictures and Television Production. The company was founded in 1986 and is based in Santa Monica, California.
LGF.B Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Lions Gate Entertainment Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Lions Gate Entertainment Corp ranked in the 69th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 106%. As for the metrics that stood out in our discounted cash flow analysis of Lions Gate Entertainment Corp, consider:
35% of the company's capital comes from equity, which is greater than only 13.35% of stocks in our cash flow based forecasting set.
Lions Gate Entertainment Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.42. This coverage rate is greater than that of just 16.23% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Lions Gate Entertainment Corp experienced a tax rate of about 0% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Lions Gate Entertainment Corp? See F, MBUU, DISH, HBI, and MCS.