How Recent Leadership Shakeups Are Shaping Paramount Skydance’s Value in 2025

• Wondering if Paramount Skydance is good value right now? You are not alone, especially as investors keep a sharp eye on what is next for this attention-grabbing media name.
• The stock has rallied 49.2% year-to-date, with a 2.1% boost in the past week. However, the last month saw shares slip by 4.7% as the market reappraised risks and growth potential.
• Paramount Skydance has made headlines recently after reports of major industry dealmaking and leadership shakeups, which has stirred up speculation about strategic pivots and future growth. These developments have helped shape recent price moves as investors look for signs of stability and a new direction.
• On a valuation check, Paramount Skydance scores 4 out of 6 for being undervalued. This puts it in positive territory, but not without some question marks. We will break down what is behind each of these checks in a moment, and stick around for a view on smarter ways to really size up what PSKY is worth.

Paramount Skydance delivered 48.9% returns over the last year. See how this stacks up to the rest of the Media industry.

Approach 1: Paramount Skydance Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates a company's value by projecting its future cash flows and discounting them back to today's dollars. For Paramount Skydance, this approach uses a two-stage Free Cash Flow to Equity model to capture expected cash generation over time in $.

Currently, Paramount Skydance reports Free Cash Flow of $305 million. Analyst projections show moderate growth in the coming years, with free cash flow anticipated to reach $944 million by the end of 2029. Beyond that, Simply Wall St extrapolates annual growth, with expected FCF crossing $1.4 billion by 2034. The model applies a discount rate to each future cash flow, reflecting both risk and the time value of money.

Using these assumptions, Paramount Skydance’s intrinsic value comes out to $19.48 per share. Compared to the recent trading price, this valuation represents a 19 percent discount, indicating that the stock is undervalued by the DCF measure.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Paramount Skydance is undervalued by 19.0%. Track this in your watchlist or portfolio, or discover 925 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Paramount Skydance.

Approach 2: Paramount Skydance Price vs Sales

The price-to-sales (P/S) ratio is often a powerful valuation tool for companies such as Paramount Skydance, especially when profits are volatile or negative. It measures how much investors are willing to pay per dollar of the company’s revenue and is broadly used for media businesses where earnings can fluctuate due to one-off content or investment cycles. A low P/S ratio may signal undervaluation, while a high ratio could mean expectations of strong revenue growth or higher risk tolerance among investors.

Paramount Skydance currently trades at a P/S ratio of 0.60x. This is noticeably below both the industry average of 1.05x and the peer average of 1.08x, suggesting the stock is currently priced more conservatively compared to its competitors in the Media sector. In other words, investors are paying less for the company’s sales than for those of its peers.

To get a more nuanced perspective, Simply Wall St’s proprietary “Fair Ratio” blends standard valuation benchmarks with factors unique to Paramount Skydance. This metric incorporates forward-looking growth opportunities, potential risks, profitability margins, market capitalization, and industry context. This approach provides a more holistic view compared to just industry averages or competitor multiples. For Paramount Skydance, the Fair Ratio is calculated at 1.62x.

When we compare this Fair Ratio with the current P/S multiple of 0.60x, Paramount Skydance appears significantly undervalued by this methodology. The market is offering the company’s future growth potential at a considerable discount.

Result: UNDERVALUED

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1433 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Paramount Skydance Narrative

Earlier, we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives. A Narrative is your story, the way you connect your perspective about a company, like Paramount Skydance, to the actual numbers that drive valuation such as revenue, earnings, and margin estimates. Narratives bridge the gap between a company’s story, a forecast for the future, and what you think is a fair value for the stock.

This approach is simple and accessible, available within the Simply Wall St Community page where millions of investors use Narratives to refine their buy and sell decisions. By crafting your own Narrative, you can compare your calculated fair value to the price at any time, helping you make smarter, more confident investment choices.

Narratives are dynamic and update automatically when fresh news or earnings are released, so your outlook stays current. For instance, one investor may see Paramount Skydance returning to strong growth and set a high fair value, while another expects slower progress and is more conservative. Narratives help investors of all perspectives use real data and personal insights to chart a path forward.

Do you think there's more to the story for Paramount Skydance? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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