Discounted Cash Flow Calculation for NYSE:MSGN using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
NYSE:MSGN DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
MSG Networks's share price is below the future cash flow value, and at a moderate discount (> 20%).
MSG Networks's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
MSG Networks's earnings available for a low price, and how does
this compare to other companies in the same industry?
MSG Networks's earnings are expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).
MSG Networks's revenue is expected to grow by 1.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
MSG Networks's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Ms. Andrea Greenberg is the President and Chief Executive Officer of MSG Networks Inc. since 2015. Ms. Greenberg has more than 30 years of experience in the sports, entertainment and television industries. Ms. Greenberg served as the Executive Vice President of Madison Square Garden Company’s (“MSG”) Media business segment from 2010 until 2015. Ms. Greenberg was responsible for all aspects of the Media division, including programming, marketing, sales and operations, and directed all major transactional activities of the division. Ms. Greenberg previously served as the Executive Vice President of the MSG Entertainment business segment from 2008 to 2009. Prior to joining MSG, Ms. Greenberg spent more than 25 years at Rainbow Media Holdings, the former Cablevision Systems Corporation (“Cablevision”) programming subsidiary that spun-off from Cablevision in 2011 to become AMC Networks Inc., last serving as President of Rainbow Media Ventures from 2004 to 2008. Ms. Greenberg serves as a director of The Garden of Dreams Foundation since 2015.
Andrea's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Andrea's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the MSG Networks management team is about average.
Executive Chairman of the Board
President & CEO
Senior Vice President of Investor Relations
Executive Vice President of Business Affairs
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the MSG Networks board of directors is about average.
MSG Networks (NYSE:MSGN) Shareholders Received A Total Return Of 36% In The Last Five Years
By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … While the share price declined over five years, MSG Networks actually managed to increase EPS by an average of 3.3% per year. … Given the share price reaction, one might suspect that EPS is not a good guide to the business performance during the period (perhaps due to a one-off loss or gain).
Does MSG Networks Inc. (NYSE:MSGN) Have A Good P/E Ratio?
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … To keep it practical, we'll show how MSG Networks Inc.'s (NYSE:MSGN) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Is MSG Networks Inc.'s (NYSE:MSGN) CEO Paid Enough Relative To Peers?
Andrea Greenberg has been the CEO of MSG Networks Inc. … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Andrea Greenberg's Compensation Compare With Similar Sized Companies?
Estimating The Intrinsic Value Of MSG Networks Inc (NYSE:MSGN)
Today, I will calculate the stock's intrinsic value. … by taking the expected future cash flows and discounting them to today's value. … If you are reading this and its not November 2018 then I highly recommend you check out the latest calculation for MSG Networks by following the link below
What Did MSG Networks Inc's (NYSE:MSGN) CEO Take Home Last Year?
First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Andrea Greenberg's Compensation Compare With Similar Sized Companies. … Thus we can conclude that Andrea Greenberg receives more in total compensation than the median of a group of companies in the same market, and of similar size to MSG Networks Inc
Should You Be Tempted To Buy MSG Networks Inc (NYSE:MSGN) At Its Current PE Ratio?
This analysis is intended to introduce important early concepts to people who are starting to invest. … and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … View our latest analysis for MSG Networks
Is MSG Networks Inc (NYSE:MSGN) Still A Cheap Media Stock?
Consumers have more optionality in terms of how they choose to spend their time and money, creating rivalry between various media channels for their attention … Although there is higher competition, consumer behaviour has also adapted to new activities such as omnichannel viewing, allowing individuals to consume more content than ever before … The whole industry continues to expand at a high rate driven by consumer behaviour and technology
Investors Are Undervaluing MSG Networks Inc (NYSE:MSGN) By 24.1%
Today, I will calculate the stock's intrinsic value. … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model
Should You Be Tempted To Buy MSG Networks Inc (NYSE:MSGN) Because Of Its PE Ratio?
and want to begin learning the link between MSG Networks Inc (NYSE:MSGN)’s fundamentals and stock market performance. … MSG Networks Inc (NYSE:MSGN) trades with a trailing P/E of 6x, which is lower than the industry average of 15.7x. … Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind
Who Are The Largest Shareholders In MSG Networks Inc (NYSE:MSGN)?
Insider Ownership Insiders form another group of important ownership types as they manage the company's operations and decide the best use of capital. … Private Company Ownership Another important group of owners for potential investors in MSGN are private companies that hold a stake of 0.054% in MSGN. … Thus, investors not need worry too much about the consequences of these holdings.Next Steps: The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.
MSG Networks Inc. engages in the sports production, and content development and distribution businesses in the United States. The company owns and operates MSG Network and MSG+, which are regional sports and entertainment networks. It also operates MSG GO that provides live streaming and video on demand, as well as a Website and social media platforms for its brands. The company was formerly known as The Madison Square Garden Company and changed its name to MSG Networks Inc. in October 2015. MSG Networks Inc. was founded in 1969 and is based in New York, New York.
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