Emmis Communications Corporation, a diversified media company, engages in radio broadcasting activities in the United States. More info.
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$6.57||$6.68||$6.80||$6.91||$7.03|
|Source||Extrapolated @ (1.7%)||Extrapolated @ (1.7%)||Extrapolated @ (1.7%)||Extrapolated @ (1.7%)||Extrapolated @ (1.7%)|
Discounted (@ 17.53%)
Present value of next 5 years cash flows:
Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $7 × (1 + 2.47%) ÷ (17.53% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$43 = $21 + $21
Value = Total value / Shares Outstanding ($43 / 13)Discount to Share Price
Value per share:
Current discount (share price of $3.55): -5.66%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 17.53% = 2.47% + (2 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($45,758,952).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
3.041 = 0.96 (1 + (1- 30%) (309.47%))
Levered Beta used in calculation = 2
Mr. Jeffrey H. Smulyan, also known as Jeff, J.D., serves as an Operating Partner at Catalyst Investors. Mr. Smulyan founded Emmis Communications Corporation in 1979 and has been its Executive Chairman and Chief Executive Officer since 1981. He serves as the President and Chief Executive Officer of Emmis Operating Company. He is an Industry Advisor at BIA Digital Partners LP. He began working in radio in 1973 and has owned one or more radio stations since then. He was the owner and Chief Executive Officer of the Seattle Mariners baseball team. He has been an Executive Director of Emmis Communications Corp. since 1979. He served as President at Emmis Communications Corp from 1994 to August 2015. Mr. Smulyan serves as the Chairman of Emmis Operating Company. He serves as a Member of the Advisory Board at BIA Digital Partners II, L.P. He served as a Director of Finish Line Inc. from June 1992 to July 17, 2008. He sits on the Board of Trustees of Ball State University. He serves as a Trustee of University of Southern California. He was Note and Comment Editor of the USC Law Review at USC School of Law. He was the Chairman of the Board of Directors of the Radio Advertising Bureau. Mr. Smulyan was a Director of the National Association of Broadcasters. In 2000, he was honored with the American Women in Radio and Television's Silver Satellite Award, the National Association of Broadcasters' National Radio Award and as Radio Ink's “Radio Executive of the Year“ by a radio industry group. Mr. Smulyan was voted one of the Ten Most Influential Radio Executives in the past 20 Years in a poll in Radio and Records magazine. Mr. Smulyan is a cum laude graduate of the University of Southern California with a BA in History and Telecommunications. He earned a Juris Doctor degree from USC School of Law.
Average tenure and age of the Emmis Communications management team in years:
Average tenure and age of the Emmis Communications board of directors in years:
Emmis Communications Corporation, a diversified media company, engages in radio broadcasting activities in the United States. The company operates in three segments: Radio, Publishing, and Corporate & Emerging Technologies. It operates 16 FM and 3 AM radio stations in New York, Los Angeles, St. Louis, Austin, and Indianapolis, as well as publishes Indianapolis monthly magazine. The company also develops and licenses TagStation, a cloud-based software platform that allows a broadcaster to manage album art, meta data, and enhanced advertising on its various broadcasts; and develops NextRadio, a smartphone application that marries over-the-air FM radio broadcasts with visual and interactive features on smartphones. In addition, it provides Dial Report that offers radio advertising buyers and sellers big data analytics derived from radio station network, smartphone usage, location-based data, demographic profiling and listening data; and engages in dynamic pricing business. Emmis Communications Corporation was founded in 1981 and is based in Indianapolis, Indiana.
|Name:||Emmis Communications Corporation|
Emmis Communications Corporation
One Emmis Plaza,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NasdaqGS||EMMS||Class A Common Stock||Nasdaq Global Select||US||USD||23. Feb 1994|
|DB||EC21||Class A Common Stock||Deutsche Boerse AG||DE||EUR||23. Feb 1994|