Late-night addendum to the Pandora analysis: "Enterprise value"

Now that I think about it, a better way to do the math in the “RAIN Analysis” in our June 3rd issue might be, rather than looking at market capitalizations, to look at the “enterprise values” of radio station groups — how much the stations themselves are worth, as represented by the sum of what the shareholders own (i.e., the market capitalization) and what the banks own (i.e., the company’s debt).

Example: At the moment, the stock market thinks that Emmis’s assets are worth $365 million (its “enterprise value”); but since Emmis has $325 million in bank debt, the remaining value owned by shareholders is only $40 million (its “market capitalization”). You can think of it this way: If you wanted to own all of Emmis’s radio stations free and clear, you’d theoretically have to pay $365 million, since you’d have to buy all the stock and pay off the bank debt.

(Incidentally, Pandora’s enterprise value and its market cap will be almost identical, since the company has very little bank debt.)

In terms of enterprise value, Sirius XM leads the pack with a value based on its stock price today of $8.4 billion. Based on this week’s stock prices, Entercom’s stations are currently worth $970 million; Cumulus’s stations are worth $740 million, Radio One’s are worth $760 million, Saga’s are worth $245 million, and so forth. Privately-held Clear Channel Radio and the CBS Radio division of CBS Corp., with six and three times the revenues of Entercom, respectively, would probably be reasonably valued this week at somewhere over $6 billion and $3 billion. Citadel is in the process of being acquired by Cumulus in a deal that assigns Citadel an enterprise value of $2.4 billion (although Citadel’s revenues are only about 50% larger than Entercom’s).

Thus, at a $1.3 billion valuation, Pandora would be, in terms of enterprise value, the country’s fifth-largest radio operator, after Sirius XM, Clear Channel, CBS Radio, and the upcoming Citadel/Cumulus combination. But a pretty-distant fifth.

At least for now.

Share this

Comments

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

So infotech and informative,i had learn hough from this.

Facetime for pc

Zapya for pc

allcast for pc

change my software for pc

I really like reading through a post that can make people think. Also, many thanks for permitting me to comment!
Jio4GVoice

istanamurah.com adalah website yang menjual berbagai macam produk seperti alatfitness.net dan juga cetakankue.net dan juga treadmill.co.id pembelian produk di website tersebut bisa diliat juga di bisagrosir.com disana juga menjual happy call dengan harga halomurah.com dan produk tersebut menjadi produk yang larismu.com di toko tersebut. selain situs ter sebut anda juga bisa mengunjungi situs indonetshop.com karena di sana menjual grosirfitnes.com dengan harga yang cukup maxgrosir.com

I have been exploring this topic for a some long time. You have offered great information in your post and some things I have not seen in other content I have read by my friends. kokoswasser kaufen - kokoswasserkaufen.de

You are so cool! I don't believe I've truly read through something like that before. So wonderful to discover someone with unique thoughts on this subject. Really.. thanks for starting this up. This site is one thing that is required on the internet, someone with some originality!
Filmywap 2018

Hi there! I am also interested in this topic. I have spent a lot of time on searching this kind of topic. It is very informative.

www.fernglaskaufen.eu

dengan tehnologi saat ini anda dengan mudah menemukan penjualan obat aborsi dengan mengetik di google contoh nya jual obat aborsi makassar , jual obat aborsi malang , jual obat aborsi semarang , jual obat aborsi surabaya , jual obat aborsi palembang , jual obat aborsi bekasi , cara menggugurkan kandungan informasi cara aborsi atau menggugurkan kandungan dini dengan mudah anda dapat dengan mengunjugi wabsite kami

dengan tehnologi saat ini anda dengan mudah menemukan penjualan obat aborsi dengan mengetik di google contoh nya jual obat aborsi , jual obat aborsi bandung , jual obat aborsi batam , jual obat aborsi murah , jual obat aborsi jakarta , jual obat aborsi jogja seperti ini anda menemukan apa yang anda cara tentang obat aborsi dengan pil cytotec.

The article you have shared here very good. This is really interesting information for me. Thanks for sharing!
hotmail login |hotmail sign in |free hotmail login

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Post new comment

  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.

More information about formatting options

By submitting this form, you accept the Mollom privacy policy.