Entertainment · NASDAQ
Current Price
$11.04
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Paramount Global with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Open DCF Calculator for PARAParamount Global operates as a media and entertainment company worldwide. The company distributes a schedule of news and public affairs broadcasts, and sports and entertainment programming; acquires or develops, and schedules programming on the CBS Television Network that includes primetime comedies and dramas, reality, specials, kids' programs, daytime dramas, game shows, and late night programs; produces or distributes talk shows, court shows, game shows, and newsmagazines; owns and operates 29 broadcast television stations; and operates CBS Sports Network, a 24-hour cable channel that provides sports and related content, as well as streaming and cable subscription services. It also operates Paramount+, a digital subscription video on-demand and live streaming services; and creates and acquires programming for distribution and viewing on various media platforms, including subscription cable networks, subscription streaming, and premium and basic cable networks. In addition, the company develops, produces, finances, acquires, and distributes films. Paramount Global was formerly known as ViacomCBS Inc. and changed its name to Paramount Global in February 2022. The company was incorporated in 1986 and is headquartered in New York, New York. Paramount Global operates as a subsidiary of National Amusements, Inc.
ROIC (TTM)
-16.1%
ROE (TTM)
-4.4%
FCF Yield
4.38%
Based on trailing twelve-month data, PARA shows a free cash flow per share of N/A and a ROIC of -16.1%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 4.38% are important context metrics when evaluating PARA's stock valuation relative to peers.
The intrinsic value of PARA depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether PARA is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $11.04. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Paramount Global: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Entertainment industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting PARA's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Paramount Global, this means projecting how much free cash flow the Entertainment will produce over the next 5-10 years, then discounting those amounts to today's dollars. PARA's ROIC of -16.1% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For PARA, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
