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
↑Iconic Content Library
Paramount possesses a vast and valuable library of intellectual property across film and television. This includes beloved franchises and characters that drive ongoing consumer engagement and licensing opportunities.
↑Brand Recognition and Loyalty
Brands like CBS, Paramount Pictures, and Nickelodeon have strong global recognition and established consumer loyalty. This allows for premium pricing and sustained audience attention.
↑Diverse Distribution Channels
The company operates across multiple platforms, including broadcast, cable, streaming, and theatrical releases. This diversified approach captures a wider audience and revenue streams.
INVESTMENT RISKS
↓Debt Burden and Acquisition Uncertainty
Significant debt financing for acquisitions, like the potential Warner Bros. deal, creates financial strain and uncertainty. Regulatory hurdles could also derail these strategic moves.
↓Content Creation Costs and ROI
The escalating costs of producing high-quality content for multiple platforms make it challenging to achieve a consistent return on investment.
↓Talent and Creative Dependencies
Reliance on key talent and creative teams for successful content creation poses a risk if these individuals depart or demand significantly higher compensation.
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
0.06
Earnings Yield
-4.94%
ROE (TTM)
-4.6%
Revenue/Share (TTM)
$26.17
Dividend Yield
1.81%
Debt/Equity
1.42x
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 -21.2x combined with a PEG ratio of 0.06 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the 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 (-21.2x) against the Entertainment median to assess relative pricing, (2) check the PEG ratio (0.06) 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 0.06, calculated by dividing the PE ratio (-21.2x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. 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.