CBS
How the same valuation framework yields a Hold when upside to target is only 7%, and how ad exposure caps a broadcaster's multiple.
- Rating
- Price target
- USD 67.00
- Published
- March 4, 2015
- Length
- 16 pages
- Sector
- Media & Entertainment
- Market
- US
What the analyst argued
Deutsche Bank rated CBS a Hold with a $67 target, acknowledging it as the best-programmed broadcast network with a deep syndication and licensing pipeline that benefits from international pay TV and SVOD growth, plus optionality in Showtime and the broadcast spectrum auction. The constraint was advertising, still about half of revenue, which the analysts expected to stay flattish industry-wide for several years as measurement and the ad model caught up with consumer behaviour. With only 7% upside from the Economic Returns Model (8.8% WACC), the stock was fairly valued.
Lead analysts: Bryan Kraft, Sunny Kwak, Clay Griffin.
Inside the report
- 01Investment Thesis
- 02Outlook
- 03Valuation
- 04Risks
- 05Company Analysis
- 06Retransmission and reverse comp projection
- 07Advertising outlook
- 08Quarterly estimates
- 09Economic Returns Model
- 10Comparable Company Valuations
- DCF
- P/E
- EV/EBITDA
- Comparable companies
Includes a multi-year earnings model with the income statement, balance sheet, and cash flow forecasts the valuation is built on.
Read the report
16 pages
Tap the cover to open the PDF.Published by Deutsche Bank on March 4, 2015 and hosted here for educational use; the report and everything in it belongs to Deutsche Bank. The rating, estimates, and price target are the analysts’ view on that date, more than a decade ago, and are not a recommendation today. Copy first uploaded October 5, 2026.
More initiations
20 reports in the library- 21st Century FoxDeutsche BankHow Deutsche Bank's Economic Returns Model, a market-based DCF, turns a WACC and a free cash flow yield into an implied equity return.Initiation of coverage · March 4, 2015 · 17 pagesTarget USD 42.00
- Liberty MediaDeutsche BankHow to value a holding company by summing its stakes at a discount to net asset value based on control and liquidity.Initiation of coverage · March 4, 2015 · 11 pagesTarget USD 43.00
- Walt DisneyDeutsche BankWhy a great company can still be a Hold: separating business quality from valuation and expected equity return.Initiation of coverage · March 4, 2015 · 18 pagesTarget USD 105.00
- Achillion PharmaceuticalsBarclaysHow a biotech analyst values a pre-revenue drug pipeline with a risk-adjusted NPV sum-of-the-parts and a competitive launch timeline.Initiation of coverage · March 3, 2015 · 23 pagesTarget USD 8.00
