NZME Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: NZM (NZ$1.04) is trading below our estimate of fair value (NZ$2.38)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for NZM. This is calculated by dividing NZM's market cap by their current earnings.
What is NZM's PE Ratio?
PE Ratio	15.9x
Earnings	NZ$12.23m
Market Cap	NZ$192.28m

NZM 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	0.9x
Enterprise Value/EBITDA	11.4x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NZM 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	7.8x
SKT SKY Network Television	7.1x	-9.7%	NZ$342.8m
GYLD B Gyldendal	7.9x	n/a	DKK 745.6m
18 Oriental Enterprise Holdings	12.5x	n/a	HK$935.2m
NORTHM North Media	3.6x	-18.1%	DKK 912.1m
NZM NZME	15.9x	14.1%	NZ$192.3m

Price-To-Earnings vs Peers: NZM is expensive based on its Price-To-Earnings Ratio (15.9x) compared to the peer average (7.9x).

Price to Earnings Ratio vs Industry

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

14 Companies	Price / Earnings	Estimated Growth	Market Cap

14 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: NZM is expensive based on its Price-To-Earnings Ratio (15.9x) compared to the Global Media industry average (15.5x).

Price to Earnings Ratio vs Fair Ratio

What is NZM'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.

NZM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.9x
Fair PE Ratio	13x

Price-To-Earnings vs Fair Ratio: NZM is expensive based on its Price-To-Earnings Ratio (15.9x) compared to the estimated Fair Price-To-Earnings Ratio (13x).

Analyst Price Targets

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

The above table shows the analyst NZM forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	NZ$1.04	NZ$1.14 +9.1%	4.9%	NZ$1.19	NZ$1.08	n/a	2
Nov ’25	NZ$1.07	NZ$1.18 +10.3%	0.9%	NZ$1.19	NZ$1.17	n/a	2
Oct ’25	NZ$1.05	NZ$1.18 +12.4%	0.9%	NZ$1.19	NZ$1.17	n/a	2
Sep ’25	NZ$0.97	NZ$1.18 +21.7%	0.9%	NZ$1.19	NZ$1.17	n/a	2

Analyst Forecast: Target price is less than 20% higher than the current share price.