A Look at TEGNA's Valuation After Recent Share Price Gains

TEGNA (TGNA) shares have seen some modest gains recently, with a 0.3% increase over the past day and a 21% jump for the past 3 months. Investors may be watching to see if these performance trends continue.

See our latest analysis for TEGNA.

Momentum is picking up for TEGNA, with a strong 21% 3-month share price return helping offset a quieter start to the year. Its 24% one-year total shareholder return highlights some much-needed longer-term resilience. Investors seem increasingly optimistic about the company’s prospects, even as short-term moves remain choppy.

If TEGNA’s recent streak has you rethinking what else is gaining traction, now could be a great time to explore fast growing stocks with high insider ownership

But with TEGNA’s share price now outpacing its fundamentals and trading close to analyst targets, investors have to wonder whether there is still untapped value left or if the market is already pricing in all the future growth.

Most Popular Narrative: 7.8% Undervalued

TEGNA’s current share price remains below the consensus fair value, suggesting some upside potential if key assumptions play out as expected. To understand the logic behind this view, let’s look closely at the most widely followed narrative and its main catalyst.

*Ongoing changes in advertiser behavior, specifically, the migration of ad budgets away from linear TV to digital and social platforms, are anticipated to reduce the total addressable market for traditional broadcast ads. This could potentially lead to sustained net margin pressure. The company's emphasis on political advertising and cyclical events as key revenue drivers heightens earnings volatility, and periods between major election cycles are likely to expose weak spots in recurring revenue and EBIT trends.*

Read the complete narrative.

Curious which earnings levers and industry trends drive this valuation thesis? There’s a critical mix of shifting ad markets, profit margin forecasts, and future cash flow assumptions powering the narrative’s fair value calculation. See what’s fueling the story and read on to uncover the details behind the numbers.

Result: Fair Value of $21.33 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rapid growth in streaming news and strong demand for local content could help TEGNA offset broadcast declines and improve future performance.

Find out about the key risks to this TEGNA narrative.

Build Your Own TEGNA Narrative

If you see things differently or want a hands-on look at the numbers, you’re welcome to dig into the data and share your own take in just a few minutes. Do it your way

A great starting point for your TEGNA research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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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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