Intrinsic value of Entercom Communications Cl A - ETM

Previous Close

$7.26

  Intrinsic Value

$27.65

stock screener

  Rating & Target

str. buy

+281%

Previous close

$7.26

 
Intrinsic value

$27.65

 
Up/down potential

+281%

 
Rating

str. buy

We calculate the intrinsic value of ETM 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 0001), $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 1.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  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
  949
  1,466
  2,192
  3,180
  4,487
  6,168
  8,280
  10,872
  13,989
  17,670
  21,942
  26,826
  32,334
  38,471
  45,236
  52,620
  60,614
  69,204
  78,377
  88,119
  98,417
  109,261
  120,642
  132,555
  144,998
  157,973
  171,486
  185,544
  200,162
  215,356
Variable operating expenses, $m
  531
  629
  767
  954
  1,202
  1,521
  1,921
  2,413
  3,004
  3,702
  4,161
  5,087
  6,132
  7,296
  8,579
  9,979
  11,495
  13,124
  14,864
  16,712
  18,665
  20,721
  22,880
  25,139
  27,499
  29,959
  32,522
  35,188
  37,960
  40,842
Fixed operating expenses, $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
Total operating expenses, $m
  531
  629
  767
  954
  1,202
  1,521
  1,921
  2,413
  3,004
  3,702
  4,161
  5,087
  6,132
  7,296
  8,579
  9,979
  11,495
  13,124
  14,864
  16,712
  18,665
  20,721
  22,880
  25,139
  27,499
  29,959
  32,522
  35,188
  37,960
  40,842
Operating income, $m
  418
  836
  1,425
  2,226
  3,285
  4,647
  6,358
  8,459
  10,985
  13,968
  17,781
  21,738
  26,202
  31,175
  36,657
  42,641
  49,118
  56,080
  63,513
  71,408
  79,753
  88,540
  97,763
  107,416
  117,500
  128,014
  138,964
  150,356
  162,202
  174,514
EBITDA, $m
  838
  1,295
  1,936
  2,809
  3,963
  5,448
  7,313
  9,603
  12,356
  15,607
  19,380
  23,694
  28,559
  33,980
  39,954
  46,477
  53,537
  61,125
  69,227
  77,831
  86,927
  96,505
  106,557
  117,079
  128,070
  139,530
  151,465
  163,882
  176,794
  190,213
Interest expense (income), $m
  35
  101
  190
  320
  503
  752
  1,081
  1,505
  2,037
  2,689
  3,475
  4,402
  5,478
  6,708
  8,095
  9,641
  11,344
  13,204
  15,218
  17,381
  19,692
  22,145
  24,739
  27,470
  30,337
  33,337
  36,471
  39,739
  43,142
  46,683
  50,365
Earnings before tax, $m
  316
  646
  1,105
  1,723
  2,532
  3,566
  4,853
  6,422
  8,296
  10,493
  13,379
  16,261
  19,494
  23,080
  27,016
  31,296
  35,914
  40,862
  46,132
  51,716
  57,608
  63,801
  70,292
  77,080
  84,163
  91,543
  99,225
  107,214
  115,519
  124,149
Tax expense, $m
  85
  174
  298
  465
  684
  963
  1,310
  1,734
  2,240
  2,833
  3,612
  4,390
  5,263
  6,232
  7,294
  8,450
  9,697
  11,033
  12,456
  13,963
  15,554
  17,226
  18,979
  20,812
  22,724
  24,717
  26,791
  28,948
  31,190
  33,520
Net income, $m
  231
  472
  806
  1,257
  1,849
  2,603
  3,543
  4,688
  6,056
  7,660
  9,767
  11,870
  14,231
  16,849
  19,722
  22,846
  26,217
  29,829
  33,676
  37,753
  42,054
  46,575
  51,313
  56,268
  61,439
  66,826
  72,434
  78,266
  84,329
  90,629

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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
Total assets, $m
  7,241
  11,188
  16,731
  24,276
  34,251
  47,087
  63,204
  82,991
  106,789
  134,883
  167,495
  204,778
  246,827
  293,675
  345,310
  401,678
  462,699
  528,275
  598,299
  672,666
  751,278
  834,055
  920,932
  1,011,870
  1,106,856
  1,205,902
  1,309,050
  1,416,370
  1,527,957
  1,643,938
Adjusted assets (=assets-cash), $m
  7,241
  11,188
  16,731
  24,276
  34,251
  47,087
  63,204
  82,991
  106,789
  134,883
  167,495
  204,778
  246,827
  293,675
  345,310
  401,678
  462,699
  528,275
  598,299
  672,666
  751,278
  834,055
  920,932
  1,011,870
  1,106,856
  1,205,902
  1,309,050
  1,416,370
  1,527,957
  1,643,938
Revenue / Adjusted assets
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
Average production assets, $m
  2,075
  3,205
  4,794
  6,955
  9,813
  13,490
  18,108
  23,777
  30,595
  38,644
  47,987
  58,668
  70,715
  84,137
  98,930
  115,080
  132,562
  151,349
  171,411
  192,717
  215,239
  238,954
  263,844
  289,898
  317,111
  345,487
  375,039
  405,786
  437,755
  470,983
Working capital, $m
  290
  448
  671
  973
  1,373
  1,888
  2,534
  3,327
  4,281
  5,407
  6,714
  8,209
  9,894
  11,772
  13,842
  16,102
  18,548
  21,176
  23,983
  26,964
  30,116
  33,434
  36,916
  40,562
  44,369
  48,340
  52,475
  56,777
  61,250
  65,899
Total debt, $m
  3,522
  5,934
  9,321
  13,931
  20,025
  27,868
  37,716
  49,805
  64,346
  81,512
  101,437
  124,217
  149,909
  178,533
  210,082
  244,523
  281,807
  321,874
  364,659
  410,097
  458,129
  508,705
  561,787
  617,351
  675,387
  735,904
  798,928
  864,500
  932,680
  1,003,544
Total liabilities, $m
  4,424
  6,836
  10,223
  14,833
  20,927
  28,770
  38,618
  50,707
  65,248
  82,414
  102,339
  125,120
  150,811
  179,435
  210,984
  245,425
  282,709
  322,776
  365,561
  410,999
  459,031
  509,607
  562,689
  618,253
  676,289
  736,806
  799,830
  865,402
  933,582
  1,004,446
Total equity, $m
  2,817
  4,352
  6,509
  9,444
  13,323
  18,317
  24,586
  32,283
  41,541
  52,470
  65,155
  79,659
  96,016
  114,240
  134,325
  156,253
  179,990
  205,499
  232,738
  261,667
  292,247
  324,447
  358,242
  393,618
  430,567
  469,096
  509,221
  550,968
  594,375
  639,492
Total liabilities and equity, $m
  7,241
  11,188
  16,732
  24,277
  34,250
  47,087
  63,204
  82,990
  106,789
  134,884
  167,494
  204,779
  246,827
  293,675
  345,309
  401,678
  462,699
  528,275
  598,299
  672,666
  751,278
  834,054
  920,931
  1,011,871
  1,106,856
  1,205,902
  1,309,051
  1,416,370
  1,527,957
  1,643,938
Debt-to-equity ratio
  1.250
  1.360
  1.430
  1.480
  1.500
  1.520
  1.530
  1.540
  1.550
  1.550
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
  1.570
  1.570
  1.570
  1.570
  1.570
  1.570
  1.570
  1.570
  1.570
  1.570
  1.570
  1.570
  1.570
  1.570
Adjusted equity ratio
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  231
  472
  806
  1,257
  1,849
  2,603
  3,543
  4,688
  6,056
  7,660
  9,767
  11,870
  14,231
  16,849
  19,722
  22,846
  26,217
  29,829
  33,676
  37,753
  42,054
  46,575
  51,313
  56,268
  61,439
  66,826
  72,434
  78,266
  84,329
  90,629
Depreciation, amort., depletion, $m
  420
  458
  511
  583
  678
  801
  955
  1,144
  1,371
  1,639
  1,600
  1,956
  2,357
  2,805
  3,298
  3,836
  4,419
  5,045
  5,714
  6,424
  7,175
  7,965
  8,795
  9,663
  10,570
  11,516
  12,501
  13,526
  14,592
  15,699
Funds from operations, $m
  651
  930
  1,317
  1,841
  2,527
  3,404
  4,498
  5,832
  7,427
  9,299
  11,366
  13,826
  16,588
  19,653
  23,019
  26,682
  30,636
  34,874
  39,390
  44,177
  49,228
  54,540
  60,108
  65,931
  72,009
  78,343
  84,935
  91,793
  98,921
  106,328
Change in working capital, $m
  109
  158
  222
  302
  400
  515
  646
  793
  954
  1,126
  1,307
  1,495
  1,686
  1,878
  2,070
  2,260
  2,446
  2,629
  2,807
  2,981
  3,151
  3,318
  3,483
  3,645
  3,808
  3,970
  4,135
  4,302
  4,473
  4,649
Cash from operations, $m
  542
  772
  1,095
  1,538
  2,127
  2,889
  3,852
  5,039
  6,473
  8,173
  10,059
  12,331
  14,903
  17,775
  20,949
  24,423
  28,190
  32,246
  36,583
  41,196
  46,077
  51,222
  56,626
  62,286
  68,201
  74,372
  80,801
  87,491
  94,448
  101,679
Maintenance CAPEX, $m
  -43
  -69
  -107
  -160
  -232
  -327
  -450
  -604
  -793
  -1,020
  -1,288
  -1,600
  -1,956
  -2,357
  -2,805
  -3,298
  -3,836
  -4,419
  -5,045
  -5,714
  -6,424
  -7,175
  -7,965
  -8,795
  -9,663
  -10,570
  -11,516
  -12,501
  -13,526
  -14,592
New CAPEX, $m
  -778
  -1,131
  -1,588
  -2,162
  -2,858
  -3,677
  -4,618
  -5,669
  -6,818
  -8,049
  -9,343
  -10,682
  -12,047
  -13,422
  -14,793
  -16,149
  -17,482
  -18,787
  -20,062
  -21,306
  -22,522
  -23,715
  -24,890
  -26,054
  -27,213
  -28,376
  -29,552
  -30,747
  -31,969
  -33,228
Cash from investing activities, $m
  -821
  -1,200
  -1,695
  -2,322
  -3,090
  -4,004
  -5,068
  -6,273
  -7,611
  -9,069
  -10,631
  -12,282
  -14,003
  -15,779
  -17,598
  -19,447
  -21,318
  -23,206
  -25,107
  -27,020
  -28,946
  -30,890
  -32,855
  -34,849
  -36,876
  -38,946
  -41,068
  -43,248
  -45,495
  -47,820
Free cash flow, $m
  -278
  -428
  -600
  -783
  -962
  -1,115
  -1,216
  -1,234
  -1,138
  -896
  -572
  50
  900
  1,996
  3,352
  4,976
  6,872
  9,040
  11,476
  14,176
  17,131
  20,332
  23,771
  27,438
  31,325
  35,425
  39,733
  44,243
  48,952
  53,859
Issuance/(repayment) of debt, $m
  1,650
  2,411
  3,387
  4,610
  6,094
  7,843
  9,848
  12,090
  14,541
  17,166
  19,925
  22,780
  25,692
  28,624
  31,549
  34,441
  37,284
  40,067
  42,785
  45,438
  48,032
  50,576
  53,082
  55,563
  58,036
  60,517
  63,023
  65,572
  68,180
  70,864
Issuance/(repurchase) of shares, $m
  822
  1,063
  1,350
  1,678
  2,031
  2,390
  2,727
  3,009
  3,202
  3,269
  2,919
  2,633
  2,126
  1,375
  364
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  2,472
  3,474
  4,737
  6,288
  8,125
  10,233
  12,575
  15,099
  17,743
  20,435
  22,844
  25,413
  27,818
  29,999
  31,913
  34,441
  37,284
  40,067
  42,785
  45,438
  48,032
  50,576
  53,082
  55,563
  58,036
  60,517
  63,023
  65,572
  68,180
  70,864
Total cash flow (excl. dividends), $m
  2,193
  3,047
  4,137
  5,504
  7,163
  9,118
  11,359
  13,865
  16,605
  19,539
  22,272
  25,463
  28,718
  31,996
  35,265
  39,417
  44,156
  49,106
  54,261
  59,614
  65,163
  70,908
  76,852
  83,001
  89,361
  95,943
  102,756
  109,815
  117,132
  124,723
Retained Cash Flow (-), $m
  -1,053
  -1,535
  -2,156
  -2,935
  -3,880
  -4,993
  -6,270
  -7,697
  -9,258
  -10,929
  -12,686
  -14,503
  -16,357
  -18,224
  -20,086
  -21,927
  -23,737
  -25,509
  -27,239
  -28,929
  -30,580
  -32,200
  -33,795
  -35,375
  -36,949
  -38,529
  -40,125
  -41,747
  -43,408
  -45,116
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
  1,140
  1,511
  1,981
  2,569
  3,283
  4,125
  5,089
  6,168
  7,347
  8,610
  9,587
  10,960
  12,361
  13,772
  15,179
  17,489
  20,418
  23,597
  27,022
  30,685
  34,583
  38,708
  43,057
  47,626
  52,412
  57,414
  62,632
  68,067
  73,724
  79,607
Discount rate, %
  9.40
  9.87
  10.36
  10.88
  11.43
  12.00
  12.60
  13.23
  13.89
  14.58
  15.31
  16.08
  16.88
  17.73
  18.61
  19.54
  20.52
  21.54
  22.62
  23.75
  24.94
  26.19
  27.50
  28.87
  30.32
  31.83
  33.42
  35.09
  36.85
  38.69
PV of cash for distribution, $m
  1,042
  1,252
  1,474
  1,700
  1,912
  2,090
  2,218
  2,283
  2,279
  2,207
  2,000
  1,832
  1,627
  1,402
  1,173
  1,006
  855
  704
  561
  432
  322
  232
  161
  108
  70
  44
  26
  15
  8
  4
Current shareholders' claim on cash, %
  60.1
  39.0
  27.0
  19.8
  15.1
  12.0
  9.9
  8.4
  7.4
  6.6
  6.2
  5.8
  5.6
  5.5
  5.5
  5.5
  5.5
  5.5
  5.5
  5.5
  5.5
  5.5
  5.5
  5.5
  5.5
  5.5
  5.5
  5.5
  5.5
  5.5

Entercom Communications Corp. is a radio broadcasting company. The Company sells advertising time to local, regional and national advertisers and national network advertisers, purchasing spot commercials in varying lengths. It focuses on station-related digital platforms, which allow for audience interaction and participation, and integrated local digital marketing solutions and station events. Its stations are classified by their format, such as news, sports, talk, classic rock, urban, adult contemporary, alternative and country, among others. As of December 31, 2016, it had a portfolio of radio stations in 28 markets across the United States. It operates in various markets, which include Boston, Buffalo, Denver, Kansas City, Miami, Sacramento, San Francisco and Seattle. Its radio stations include KSWD Frequency Modulation (FM), KOSI FM, KYGO FM, KEPN AM, KKFN FM, KQKS FM, KRWZ Amplitude Modulation (AM), WSTR FM, WAXY AM/FM, WLYF FM, WMXJ FM, KBZT FM, KSON FM/KSOQ FM and KIFM FM.

FINANCIAL RATIOS  of  Entercom Communications Cl A (ETM)

Valuation Ratios
P/E Ratio 7.8
Price to Sales 0.6
Price to Book 0.7
Price to Tangible Book
Price to Cash Flow 4.1
Price to Free Cash Flow 4.5
Growth Rates
Sales Growth Rate 11.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -92.3%
Cap. Spend. - 3 Yr. Gr. Rate 11.8%
Financial Strength
Quick Ratio 9
Current Ratio 0
LT Debt to Equity 110.9%
Total Debt to Equity 112.1%
Interest Coverage 3
Management Effectiveness
Return On Assets 6%
Ret/ On Assets - 3 Yr. Avg. 5.5%
Return On Total Capital 4.3%
Ret/ On T. Cap. - 3 Yr. Avg. 3.7%
Return On Equity 9.4%
Return On Equity - 3 Yr. Avg. 8.7%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 30.9%
Gross Margin - 3 Yr. Avg. 31%
EBITDA Margin 21.3%
EBITDA Margin - 3 Yr. Avg. 22.5%
Operating Margin 18.9%
Oper. Margin - 3 Yr. Avg. 20.7%
Pre-Tax Margin 11.5%
Pre-Tax Margin - 3 Yr. Avg. 11.9%
Net Profit Margin 8.3%
Net Profit Margin - 3 Yr. Avg. 7.5%
Effective Tax Rate 28.3%
Eff/ Tax Rate - 3 Yr. Avg. 36.8%
Payout Ratio 26.3%

ETM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ETM stock intrinsic value calculation we used $592.884 million for the last fiscal year's total revenue generated by Entercom Communications Cl A. The default revenue input number comes from 0001 income statement of Entercom Communications 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 ETM 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 9.4%, whose default value for ETM is calculated based on our internal credit rating of Entercom Communications 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 Entercom Communications 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 ETM stock the variable cost ratio is equal to 78.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for ETM 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 5.4% for Entercom Communications Cl A.

Corporate tax rate of 27% is the nominal tax rate for Entercom Communications 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 ETM 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 ETM are equal to 218.7%.

Life of production assets of 153.7 years is the average useful life of capital assets used in Entercom Communications 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 ETM is equal to 30.6%. 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 - $1764.36 million for Entercom Communications 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 138.473 million for Entercom Communications 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 Entercom Communications Cl A at the current share price and the inputted number of shares is $1.0 billion.

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COMPANY NEWS

▶ Entercom Communications Corp. Announces Quarterly Dividend   [Nov-12-18 04:15PM  Business Wire]
▶ An oldie but a goodie: Entercom rebrands WBEB to its former B101 name   [07:53AM  American City Business Journals]
▶ Entercom Communications: 3Q Earnings Snapshot   [08:00AM  Associated Press]
▶ Some reasons why WIP & Entercom may have ended Wing Bowl   [Oct-31-18 01:31PM  American City Business Journals]
▶ No Bottom Yet for Entercom Communications   [01:24PM  TheStreet.com]
▶ After almost 30 years, popular host Harvey Holiday retires from WOGL   [Oct-15-18 04:30PM  American City Business Journals]
▶ 97.5 The Fanatic hires new morning show host, shifts Gargano to middays   [Oct-01-18 02:30PM  American City Business Journals]
▶ Local Entercom stations, including WIP, establish own digital identity   [12:53PM  American City Business Journals]
▶ KYW taps N.Y. radio executive to replace longtime program director   [Sep-04-18 12:54PM  American City Business Journals]
▶ Entercom hires veteran executive to run new traffic & weather network   [Aug-17-18 01:58PM  American City Business Journals]
▶ Entercom's stock soars after second quarter earnings   [Aug-09-18 07:49AM  American City Business Journals]
▶ Why Entercom Communications Corp. Stock Jumped Wednesday   [Aug-08-18 07:41PM  Motley Fool]
▶ Entercom Communications: 2Q Earnings Snapshot   [08:15AM  Associated Press]
▶ $141M deal: Bala Cynwyd-based Entercom to sell 8 radio stations   [Aug-06-18 11:05AM  American City Business Journals]
▶ Entercom sued by former traffic data partner United States Traffic Network   [Jul-31-18 07:36AM  American City Business Journals]
▶ Entercom Contract with United States Traffic Network Ends   [Jul-30-18 02:34PM  Business Wire]
▶ Why Florida-based Beasley bought Phila. country station WXTU 4 years after selling it   [Jul-19-18 02:15PM  American City Business Journals]
▶ 5 Cheap Breakout Stocks for Formidable Returns   [Jul-12-18 09:12AM  Zacks]
▶ After 2 decades leading KYW Newsradio, news & program director to depart   [Jul-09-18 02:30PM  American City Business Journals]
▶ June Undervalued Tech Opportunities   [Jun-06-18 05:02PM  Simply Wall St.]
▶ Entercom parts ways with Pittsburgh, Washington market managers   [May-28-18 08:32AM  American City Business Journals]
▶ Entercom Communications Corp. Announces Quarterly Dividend   [May-21-18 04:30PM  Business Wire]
▶ Rough first quarter has investors spooked about Entercom, radio industry   [May-16-18 03:56PM  American City Business Journals]
▶ This radio station is the best anti-Facebook investment   [May-15-18 03:40PM  MarketWatch]
▶ Entercom shares plunge after it reports $14M 1Q loss   [May-08-18 01:35PM  American City Business Journals]
▶ Entercom Communications: 1Q Earnings Snapshot   [08:23AM  Associated Press]
▶ Jamie Allman sues after losing radio show over tweet   [May-02-18 12:11PM  American City Business Journals]
▶ iHeartMedia's Chicago country radio outlet taps programming whiz   [Apr-11-18 01:32PM  American City Business Journals]
▶ Entercom's all-news WBBM-AM records ad revenue drop in 2017   [Apr-09-18 03:32PM  American City Business Journals]
▶ Entercom brings back a Top 40 talent for another go-round in Chicago   [Apr-02-18 03:17PM  American City Business Journals]
▶ Entercom Communications posts 4Q profit   [Mar-08-18 09:45AM  Associated Press]
▶ Primecap Management's Biggest New 4th Quarter Buys   [Feb-13-18 04:13PM  GuruFocus.com]
▶ Bulls ink deal with Entercom's WSCR-AM for radio game broadcasts   [Jan-31-18 02:46PM  American City Business Journals]
▶ Entercom imports country music programming maven for WUSN-FM   [Jan-23-18 12:50PM  American City Business Journals]
▶ 'Lightning rod' sports radio host signs multiyear deal with Beasley   [Jan-02-18 02:38PM  American City Business Journals]

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