RCS MediaGroup Valuation

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

RCS (€0.84) is trading below our estimate of [[fair value]] (€2.26)

Is RCS 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 RCS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RCS (€0.84) is trading below our estimate of fair value (€2.26)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for RCS. This is calculated by dividing RCS's market cap by their current earnings.
What is RCS's PE Ratio?
PE Ratio	6x
Earnings	€61.30m
Market Cap	€369.89m

RCS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	4x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RCS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	8.5x
CAI Cairo Communication	7.1x	0.2%	€310.5m
MN Arnoldo Mondadori Editore	9.8x	9.9%	€546.4m
CED Caltagirone Editore	9.4x	n/a	€148.4m
S24 Il Sole 24 ORE	7.5x	n/a	€41.3m
RCS RCS MediaGroup	6x	n/a	€369.9m

Price-To-Earnings vs Peers: RCS is good value based on its Price-To-Earnings Ratio (6x) compared to the peer average (8.5x).

Price to Earnings Ratio vs Industry

How does RCS's PE Ratio compare vs other companies in the European Media Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: RCS is good value based on its Price-To-Earnings Ratio (6x) compared to the European Media industry average (12.3x).

Price to Earnings Ratio vs Fair Ratio

What is RCS'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.

RCS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate RCS's Price-To-Earnings Fair Ratio for valuation analysis.

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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