Paramount Global (PARA) Fair Value & PE Analysis
Entertainment · NASDAQ
Current Price
$11.04
PE Ratio (TTM)
n/m
Intrinsic Value
Use the calculator below to estimate
COMPETITIVE MOAT
↑Content Library Strength
Paramount possesses a vast and diverse library of iconic intellectual property across film and television. This deep catalog provides a consistent source for new content and evergreen appeal.
↑Brand Recognition
Strong brands like CBS, Paramount Pictures, and Nickelodeon resonate deeply with global audiences. This established recognition drives viewership and consumer loyalty across various platforms.
↑Synergistic Potential
The potential merger with Warner Bros. Discovery could create significant synergies. Combining content, distribution, and advertising capabilities could lead to greater market power and efficiency.
INVESTMENT RISKS
↓Regulatory Scrutiny
The proposed merger with Warner Bros. Discovery faces intense DOJ scrutiny. Concerns about market concentration and competition in streaming could lead to deal blockage or significant concessions.
↓Debt Burden
The company's history, exemplified by Ted Turner's ventures, highlights the risks of building on debt. Significant debt financing for acquisitions could strain financial flexibility and profitability.
↓Fragmented Streaming Market
The media earnings blitz reveals a challenging streaming landscape. Intense competition and subscriber fatigue make it difficult to achieve sustainable profitability and market share.
Customize the PARA PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Paramount Global respond.
Open PE Calculator for PARACompany Overview
Paramount Global is a prominent global media and entertainment company with extensive operations. It is a major producer and distributor of content, curating diverse programming for the CBS Television Network. This includes everything from popular primetime comedies and dramas, reality series, and special events, to children's shows, daytime and late-night programs, and game shows. Furthermore, it supplies a wide array of news, public affairs, sports, and general entertainment broadcasts, alongside syndicated talk shows, court shows, and newsmagazines. Its reach extends to the ownership and management of 29 local broadcast television stations. The company also operates CBS Sports Network, a dedicated 24-hour cable channel for sports enthusiasts, and offers various streaming and cable subscription services. A cornerstone of its digital offerings is Paramount+, its flagship subscription video-on-demand (SVOD) and live streaming platform. Paramount Global develops and acquires programming tailored for diverse media outlets, spanning subscription cable networks, streaming platforms, and both premium and basic cable channels. Beyond its television and streaming endeavors, the company is also deeply involved in the motion picture industry, developing, producing, financing, acquiring, and distributing feature films. Founded in 1986 and headquartered in New York City, the entity now known as Paramount Global officially adopted its current name in February 2022, having previously operated as ViacomCBS Inc. It functions as a subsidiary under National Amusements, Inc.
Financial Metrics — PARA PE Stock Valuation Data
PE Ratio (TTM)
n/m
PEG Ratio
0.00
Earnings Yield
-8.70%
ROE (TTM)
-4.6%
Revenue/Share (TTM)
$44.23
Dividend Yield
1.91%
Debt/Equity
1.36x
Frequently Asked Questions
What is the PE ratio of PARA?
The trailing twelve-month PE ratio of PARA reflects how much investors pay per dollar of Paramount Global's earnings. This metric is most useful when compared to Entertainment peers and the company's own historical range.
Is PARA overvalued based on PE ratio?
PARA's PE of -11.5x combined with a PEG ratio of 0.00 provides a growth-adjusted perspective. A PEG below 1.0 suggests PARA may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Entertainment, a DCF analysis may be more appropriate.
How do I value PARA stock using PE ratio?
To value Paramount Global using PE: (1) Compare the current PE (-11.5x) against the Entertainment median to assess relative pricing, (2) check the PEG ratio (0.00) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of PARA?
PARA's PEG ratio is 0.00, calculated by dividing the PE ratio (-11.5x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for PARA stock valuation?
PE ratio gives a quick relative read — how PARA is priced versus Entertainment peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See PARA DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Communication Services valuationsP/E and DCF value PARA with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2025-08-07. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.