Intrinsic value of Nexstar Media Group Cl A - NXST

Previous Close

$60.00

  Intrinsic Value

$1,047

stock screener

  Rating & Target

str. buy

+999%

  Value-price divergence*

-74%

Previous close

$60.00

 
Intrinsic value

$1,047

 
Up/down potential

+999%

 
Rating

str. buy

 
Value-price divergence*

-74%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of NXST stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 1.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  23.10
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  1,103
  1,765
  2,727
  4,078
  5,916
  8,347
  11,476
  15,404
  20,226
  26,026
  32,873
  40,820
  49,907
  60,155
  71,572
  84,156
  97,894
  112,765
  128,747
  145,813
  163,937
  183,096
  203,269
  224,442
  246,605
  269,754
  293,893
  319,031
  345,186
  372,382
  400,647
Variable operating expenses, $m
 
  1,045
  1,588
  2,352
  3,391
  4,764
  6,532
  8,752
  11,477
  14,755
  18,624
  23,068
  28,203
  33,994
  40,447
  47,558
  55,321
  63,726
  72,757
  82,401
  92,643
  103,470
  114,871
  126,836
  139,361
  152,443
  166,084
  180,290
  195,071
  210,439
  226,413
Fixed operating expenses, $m
 
  153
  157
  160
  164
  169
  173
  177
  182
  186
  191
  196
  200
  205
  211
  216
  221
  227
  232
  238
  244
  250
  257
  263
  270
  276
  283
  290
  297
  305
  313
Total operating expenses, $m
  816
  1,198
  1,745
  2,512
  3,555
  4,933
  6,705
  8,929
  11,659
  14,941
  18,815
  23,264
  28,403
  34,199
  40,658
  47,774
  55,542
  63,953
  72,989
  82,639
  92,887
  103,720
  115,128
  127,099
  139,631
  152,719
  166,367
  180,580
  195,368
  210,744
  226,726
Operating income, $m
  287
  567
  982
  1,566
  2,361
  3,414
  4,770
  6,474
  8,567
  11,085
  14,058
  17,557
  21,503
  25,955
  30,915
  36,382
  42,351
  48,813
  55,758
  63,173
  71,049
  79,375
  88,142
  97,343
  106,975
  117,035
  127,526
  138,451
  149,818
  161,638
  173,922
EBITDA, $m
  385
  725
  1,200
  1,869
  2,780
  3,985
  5,538
  7,488
  9,884
  12,765
  16,168
  20,118
  24,635
  29,730
  35,406
  41,663
  48,494
  55,889
  63,836
  72,323
  81,336
  90,864
  100,897
  111,427
  122,449
  133,962
  145,968
  158,470
  171,479
  185,004
  199,063
Interest expense (income), $m
  100
  123
  199
  320
  490
  722
  1,027
  1,421
  1,915
  2,522
  3,251
  4,113
  5,113
  6,256
  7,545
  8,981
  10,565
  12,293
  14,164
  16,174
  18,321
  20,602
  23,012
  25,550
  28,214
  31,002
  33,914
  36,951
  40,113
  43,404
  46,825
Earnings before tax, $m
  171
  445
  783
  1,245
  1,871
  2,693
  3,743
  5,053
  6,652
  8,563
  10,806
  13,444
  16,391
  19,699
  23,370
  27,401
  31,787
  36,520
  41,594
  46,999
  52,728
  58,773
  65,130
  71,793
  78,761
  86,034
  93,612
  101,500
  109,705
  118,234
  127,097
Tax expense, $m
  78
  120
  211
  336
  505
  727
  1,011
  1,364
  1,796
  2,312
  2,918
  3,630
  4,425
  5,319
  6,310
  7,398
  8,582
  9,860
  11,230
  12,690
  14,237
  15,869
  17,585
  19,384
  21,266
  23,229
  25,275
  27,405
  29,620
  31,923
  34,316
Net income, $m
  92
  325
  571
  909
  1,366
  1,966
  2,732
  3,689
  4,856
  6,251
  7,889
  9,814
  11,965
  14,380
  17,060
  20,003
  23,204
  26,660
  30,363
  34,309
  38,491
  42,905
  47,545
  52,409
  57,496
  62,805
  68,337
  74,095
  80,084
  86,311
  92,781

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  88
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  2,966
  4,744
  7,330
  10,961
  15,904
  22,439
  30,848
  41,408
  54,371
  69,962
  88,368
  109,732
  134,158
  161,706
  192,398
  226,226
  263,155
  303,133
  346,094
  391,970
  440,690
  492,193
  546,423
  603,339
  662,917
  725,146
  790,035
  857,611
  927,920
  1,001,026
  1,077,009
Adjusted assets (=assets-cash), $m
  2,878
  4,744
  7,330
  10,961
  15,904
  22,439
  30,848
  41,408
  54,371
  69,962
  88,368
  109,732
  134,158
  161,706
  192,398
  226,226
  263,155
  303,133
  346,094
  391,970
  440,690
  492,193
  546,423
  603,339
  662,917
  725,146
  790,035
  857,611
  927,920
  1,001,026
  1,077,009
Revenue / Adjusted assets
  0.383
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
Average production assets, $m
  1,107
  1,772
  2,738
  4,094
  5,940
  8,381
  11,521
  15,465
  20,307
  26,130
  33,004
  40,984
  50,107
  60,395
  71,858
  84,493
  98,285
  113,217
  129,262
  146,396
  164,593
  183,828
  204,082
  225,340
  247,591
  270,833
  295,069
  320,308
  346,567
  373,871
  402,250
Working capital, $m
  173
  208
  322
  481
  698
  985
  1,354
  1,818
  2,387
  3,071
  3,879
  4,817
  5,889
  7,098
  8,446
  9,930
  11,551
  13,306
  15,192
  17,206
  19,345
  21,605
  23,986
  26,484
  29,099
  31,831
  34,679
  37,646
  40,732
  43,941
  47,276
Total debt, $m
  2,359
  3,832
  6,159
  9,427
  13,876
  19,757
  27,326
  36,829
  48,496
  62,528
  79,093
  98,321
  120,305
  145,097
  172,720
  203,166
  236,402
  272,382
  311,047
  352,335
  396,183
  442,535
  491,342
  542,567
  596,187
  652,193
  710,593
  771,412
  834,690
  900,485
  968,870
Total liabilities, $m
  2,797
  4,270
  6,597
  9,865
  14,314
  20,195
  27,764
  37,267
  48,934
  62,966
  79,531
  98,759
  120,743
  145,535
  173,158
  203,604
  236,840
  272,820
  311,485
  352,773
  396,621
  442,973
  491,780
  543,005
  596,625
  652,631
  711,031
  771,850
  835,128
  900,923
  969,308
Total equity, $m
  169
  474
  733
  1,096
  1,590
  2,244
  3,085
  4,141
  5,437
  6,996
  8,837
  10,973
  13,416
  16,171
  19,240
  22,623
  26,316
  30,313
  34,609
  39,197
  44,069
  49,219
  54,642
  60,334
  66,292
  72,515
  79,003
  85,761
  92,792
  100,103
  107,701
Total liabilities and equity, $m
  2,966
  4,744
  7,330
  10,961
  15,904
  22,439
  30,849
  41,408
  54,371
  69,962
  88,368
  109,732
  134,159
  161,706
  192,398
  226,227
  263,156
  303,133
  346,094
  391,970
  440,690
  492,192
  546,422
  603,339
  662,917
  725,146
  790,034
  857,611
  927,920
  1,001,026
  1,077,009
Debt-to-equity ratio
  13.959
  8.080
  8.400
  8.600
  8.720
  8.800
  8.860
  8.890
  8.920
  8.940
  8.950
  8.960
  8.970
  8.970
  8.980
  8.980
  8.980
  8.990
  8.990
  8.990
  8.990
  8.990
  8.990
  8.990
  8.990
  8.990
  8.990
  8.990
  9.000
  9.000
  9.000
Adjusted equity ratio
  0.028
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  92
  325
  571
  909
  1,366
  1,966
  2,732
  3,689
  4,856
  6,251
  7,889
  9,814
  11,965
  14,380
  17,060
  20,003
  23,204
  26,660
  30,363
  34,309
  38,491
  42,905
  47,545
  52,409
  57,496
  62,805
  68,337
  74,095
  80,084
  86,311
  92,781
Depreciation, amort., depletion, $m
  98
  158
  218
  303
  419
  571
  767
  1,014
  1,316
  1,680
  2,110
  2,561
  3,132
  3,775
  4,491
  5,281
  6,143
  7,076
  8,079
  9,150
  10,287
  11,489
  12,755
  14,084
  15,474
  16,927
  18,442
  20,019
  21,660
  23,367
  25,141
Funds from operations, $m
  226
  483
  790
  1,212
  1,784
  2,537
  3,500
  4,703
  6,172
  7,931
  9,999
  12,375
  15,097
  18,155
  21,551
  25,283
  29,347
  33,736
  38,442
  43,459
  48,778
  54,394
  60,300
  66,493
  72,970
  79,732
  86,778
  94,114
  101,745
  109,677
  117,921
Change in working capital, $m
  -22
  78
  113
  159
  217
  287
  369
  464
  569
  684
  808
  938
  1,072
  1,209
  1,347
  1,485
  1,621
  1,755
  1,886
  2,014
  2,139
  2,261
  2,380
  2,498
  2,615
  2,732
  2,848
  2,966
  3,086
  3,209
  3,335
Cash from operations, $m
  248
  405
  676
  1,053
  1,567
  2,250
  3,131
  4,239
  5,603
  7,247
  9,191
  11,438
  14,025
  16,946
  20,204
  23,798
  27,726
  31,981
  36,556
  41,445
  46,640
  52,133
  57,920
  63,995
  70,355
  77,000
  83,930
  91,148
  98,659
  106,468
  114,586
Maintenance CAPEX, $m
  0
  -69
  -111
  -171
  -256
  -371
  -524
  -720
  -967
  -1,269
  -1,633
  -2,063
  -2,561
  -3,132
  -3,775
  -4,491
  -5,281
  -6,143
  -7,076
  -8,079
  -9,150
  -10,287
  -11,489
  -12,755
  -14,084
  -15,474
  -16,927
  -18,442
  -20,019
  -21,660
  -23,367
New CAPEX, $m
  -136
  -665
  -966
  -1,356
  -1,846
  -2,441
  -3,141
  -3,944
  -4,842
  -5,823
  -6,874
  -7,980
  -9,123
  -10,289
  -11,463
  -12,634
  -13,793
  -14,931
  -16,046
  -17,134
  -18,197
  -19,235
  -20,254
  -21,258
  -22,251
  -23,242
  -24,235
  -25,239
  -26,260
  -27,304
  -28,379
Cash from investing activities, $m
  -140
  -734
  -1,077
  -1,527
  -2,102
  -2,812
  -3,665
  -4,664
  -5,809
  -7,092
  -8,507
  -10,043
  -11,684
  -13,421
  -15,238
  -17,125
  -19,074
  -21,074
  -23,122
  -25,213
  -27,347
  -29,522
  -31,743
  -34,013
  -36,335
  -38,716
  -41,162
  -43,681
  -46,279
  -48,964
  -51,746
Free cash flow, $m
  108
  -329
  -400
  -475
  -535
  -562
  -534
  -424
  -205
  155
  683
  1,395
  2,340
  3,525
  4,966
  6,673
  8,653
  10,907
  13,435
  16,232
  19,293
  22,611
  26,176
  29,982
  34,020
  38,284
  42,768
  47,467
  52,380
  57,504
  62,840
Issuance/(repayment) of debt, $m
  -25
  1,473
  2,327
  3,269
  4,449
  5,881
  7,568
  9,503
  11,667
  14,032
  16,565
  19,228
  21,983
  24,793
  27,623
  30,445
  33,236
  35,980
  38,665
  41,288
  43,849
  46,352
  48,807
  51,225
  53,620
  56,006
  58,400
  60,819
  63,278
  65,795
  68,385
Issuance/(repurchase) of shares, $m
  1
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -34
  1,473
  2,327
  3,269
  4,449
  5,881
  7,568
  9,503
  11,667
  14,032
  16,565
  19,228
  21,983
  24,793
  27,623
  30,445
  33,236
  35,980
  38,665
  41,288
  43,849
  46,352
  48,807
  51,225
  53,620
  56,006
  58,400
  60,819
  63,278
  65,795
  68,385
Total cash flow (excl. dividends), $m
  73
  1,143
  1,927
  2,794
  3,914
  5,319
  7,035
  9,079
  11,462
  14,187
  17,248
  20,624
  24,324
  28,318
  32,589
  37,118
  41,889
  46,887
  52,100
  57,520
  63,142
  68,963
  74,983
  81,207
  87,640
  94,290
  101,168
  108,286
  115,658
  123,299
  131,225
Retained Cash Flow (-), $m
  -88
  -305
  -259
  -363
  -494
  -653
  -841
  -1,056
  -1,296
  -1,559
  -1,841
  -2,136
  -2,443
  -2,755
  -3,069
  -3,383
  -3,693
  -3,998
  -4,296
  -4,588
  -4,872
  -5,150
  -5,423
  -5,692
  -5,958
  -6,223
  -6,489
  -6,758
  -7,031
  -7,311
  -7,598
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  838
  1,668
  2,431
  3,420
  4,666
  6,194
  8,023
  10,166
  12,628
  15,408
  18,487
  21,881
  25,563
  29,520
  33,735
  38,196
  42,889
  47,804
  52,933
  58,270
  63,812
  69,560
  75,515
  81,682
  88,067
  94,679
  101,528
  108,627
  115,988
  123,627
Discount rate, %
 
  13.00
  13.65
  14.33
  15.05
  15.80
  16.59
  17.42
  18.29
  19.21
  20.17
  21.18
  22.23
  23.35
  24.51
  25.74
  27.03
  28.38
  29.80
  31.29
  32.85
  34.49
  36.22
  38.03
  39.93
  41.93
  44.02
  46.22
  48.53
  50.96
  53.51
PV of cash for distribution, $m
 
  741
  1,292
  1,626
  1,952
  2,240
  2,466
  2,607
  2,651
  2,598
  2,454
  2,235
  1,967
  1,671
  1,371
  1,086
  831
  614
  437
  300
  199
  127
  77
  46
  26
  14
  7
  4
  2
  1
  0
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Nexstar Media Group, Inc. operates as a television broadcasting and digital media company in the United States. It focuses on the acquisition, development, and operation of television stations and interactive community Websites in medium-sized markets. The company offers free over-the-air programming to television viewing audiences. It also provides sales, programming, and other services through various local service agreements to 25 television stations and 5 power television stations owned and/or operated by independent third parties. As of December 31, 2015, the company owned, operated, programmed, or provided sales and other services to 99 television stations in 61 markets in the states of Alabama, Arizona, Arkansas, California, Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maryland, Michigan, Missouri, Montana, Nevada, New York, Pennsylvania, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, and Wisconsin. The company’s stations reach approximately 20.4 million viewers. The company was formerly known as Nexstar Broadcasting Group, Inc. and changed its name to Nexstar Media Group, Inc. in January 2017. Nexstar Media Group, Inc. was founded in 1996 and is headquartered in Irving, Texas.

FINANCIAL RATIOS  of  Nexstar Media Group Cl A (NXST)

Valuation Ratios
P/E Ratio 20
Price to Sales 1.7
Price to Book 10.9
Price to Tangible Book
Price to Cash Flow 7.4
Price to Free Cash Flow 16.5
Growth Rates
Sales Growth Rate 23.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -73.1%
Cap. Spend. - 3 Yr. Gr. Rate -11.3%
Financial Strength
Quick Ratio 2
Current Ratio 0.2
LT Debt to Equity 1369.2%
Total Debt to Equity 1395.9%
Interest Coverage 3
Management Effectiveness
Return On Assets 6.1%
Ret/ On Assets - 3 Yr. Avg. 7.1%
Return On Total Capital 4.5%
Ret/ On T. Cap. - 3 Yr. Avg. 5.2%
Return On Equity 73.6%
Return On Equity - 3 Yr. Avg. 171.7%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 65.4%
Gross Margin - 3 Yr. Avg. 67.3%
EBITDA Margin 33.5%
EBITDA Margin - 3 Yr. Avg. 34.1%
Operating Margin 26%
Oper. Margin - 3 Yr. Avg. 25.5%
Pre-Tax Margin 15.5%
Pre-Tax Margin - 3 Yr. Avg. 15.7%
Net Profit Margin 8.3%
Net Profit Margin - 3 Yr. Avg. 9.1%
Effective Tax Rate 45.6%
Eff/ Tax Rate - 3 Yr. Avg. 42.1%
Payout Ratio 31.5%

NXST stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NXST stock intrinsic value calculation we used $1103 million for the last fiscal year's total revenue generated by Nexstar Media Group Cl A. The default revenue input number comes from 2016 income statement of Nexstar Media Group Cl A. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our NXST stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 13%, whose default value for NXST is calculated based on our internal credit rating of Nexstar Media Group Cl A, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Nexstar Media Group Cl A.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of NXST stock the variable cost ratio is equal to 60.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $149 million in the base year in the intrinsic value calculation for NXST stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.2% for Nexstar Media Group Cl A.

Corporate tax rate of 27% is the nominal tax rate for Nexstar Media Group Cl A. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the NXST stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for NXST are equal to 100.4%.

Life of production assets of 16 years is the average useful life of capital assets used in Nexstar Media Group Cl A operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for NXST is equal to 11.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $169 million for Nexstar Media Group Cl A - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 30.212 million for Nexstar Media Group Cl A is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Nexstar Media Group Cl A at the current share price and the inputted number of shares is $1.8 billion.

RELATED COMPANIES Price Int.Val. Rating
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GTN Gray Televisio 13.85 31.76  str.buy
DIS Walt Disney 100.70 105.74  hold
CBS CBS Cl B 64.80 43.61  sell
GCI Gannett 8.18 50.68  str.buy
SBGI Sinclair Broad 29.70 72.88  str.buy
EVC Entravision Co 5.65 3.92  sell
VIAB Viacom Cl B 28.59 153.37  str.buy

COMPANY NEWS

▶ Local TV station to launch new newscast   [Aug-17-17 04:15PM  American City Business Journals]
▶ Nexstar beats Street 2Q forecasts   [Aug-08-17 05:26PM  Associated Press]
▶ REPEAT/Gabelli & Companys Broadcasting Symposium   [Aug-02-17 07:00AM  Business Wire]
▶ Gabelli & Companys Broadcasting Symposium   [07:00AM  Business Wire]
▶ Nexstar beats Street 1Q forecasts   [10:25AM  Associated Press]
▶ [$$] Possible Bidding War Emerges for Tribune Media   [12:09AM  The Wall Street Journal]
▶ [$$] Possible Bidding War Emerges for Tribune Media   [Apr-30-17 11:39PM  The Wall Street Journal]
▶ Possible Bidding War Emerges for Tribune Media   [11:39PM  The Wall Street Journal]
▶ Muse John R Buys Nexstar Media Group, Sells Media General   [Apr-28-17 07:38PM  GuruFocus.com]
▶ Raleigh TV station changing channels after FCC auction   [Apr-18-17 02:33PM  American City Business Journals]
▶ [$$] FCC to Vote on Relaxing Obama-Era Rule on TV Ownership   [Mar-29-17 06:15PM  at The Wall Street Journal]
▶ GM, news director exit from Raleighs CBS TV affiliate   [Feb-10-17 04:26PM  at bizjournals.com]
▶ Cramer Remix: What is weighing on Apple suppliers   [Feb-01-17 07:31PM  at CNBC]
▶ KRQE changes ownership as part of $4.6 billion deal   [10:25AM  at bizjournals.com]
Stock chart of NXST Financial statements of NXST
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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