GTN Limited

ASX:GTN Stock Report

Market Cap: AU$87.7m

GTN Valuation

Is GTN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GTN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GTN (A$0.45) is trading below our estimate of fair value (A$1.94)

Significantly Below Fair Value: GTN is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GTN?

Key metric: As GTN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GTN. This is calculated by dividing GTN's market cap by their current earnings.
What is GTN's PE Ratio?
PE Ratio15.5x
EarningsAU$5.66m
Market CapAU$87.70m

Price to Earnings Ratio vs Peers

How does GTN's PE Ratio compare to its peers?

The above table shows the PE ratio for GTN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12x
IGL IVE Group
12.2x19.2%AU$337.7m
OML oOh!media
19.4x16.0%AU$657.3m
RXH Rewardle Holdings
2.5xn/aAU$15.3m
BBL Brisbane Broncos
14xn/aAU$86.3m
GTN GTN
15.5x34.3%AU$87.7m

Price-To-Earnings vs Peers: GTN is expensive based on its Price-To-Earnings Ratio (15.5x) compared to the peer average (12x).

Price to Earnings Ratio vs Industry

How does GTN's PE Ratio compare vs other companies in the Global Media Industry?

27 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GTN 15.5xIndustry Avg. 15.7xNo. of Companies82PE01632486480+
27 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GTN is good value based on its Price-To-Earnings Ratio (15.5x) compared to the Global Media industry average (15.7x).

Price to Earnings Ratio vs Fair Ratio

What is GTN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GTN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.5x
Fair PE Ratio24x

Price-To-Earnings vs Fair Ratio: GTN is good value based on its Price-To-Earnings Ratio (15.5x) compared to the estimated Fair Price-To-Earnings Ratio (24x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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