Paramount Skydance Corporation

Financial Performance

5Y price score: (99)

10Y return: (81)%

DATE RANGE:

US$ Per
Share

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7.6

52-week range

20.8

9.97

Your model inputs

Required return / cost of capital

FCFF terminal growth rate

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

4 %

Dividend Yield TTM

2 %

Market cap $

$ 10,844

Price / Earnings TTM

(17.8)

Price / Book TTM

0.9

PEG TTM

(0.2)

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

(32.2) %

(74.5) %

(81) %

Free cash flow per share growth

(60.4) %

Earnings per share growth

94 %

Founded: 2,025

Employees: 18,600

Business Summary:Paramount Skydance Corporation functions as a worldwide leader in media, streaming, and entertainment. Its extensive operations are strategically divided into three core divisions: Television Media, Direct-to-Consumer platforms, and Filmed Entertainment. The Television Media division encompasses a vast array of broadcasting and cable properties. This includes the prominent domestic CBS Television Network and its local CBS Stations, alongside international free-to-air channels such as Network 10, Channel 5, Telefe, and Chilevisión. It also manages a suite of premium and basic cable channels within the U.S., featuring household names like Nickelodeon, MTV, CMT, Comedy Central, BET, Paramount+ with SHOWTIME, Paramount Network, The Smithsonian Channel, BET Media Group, and CBS Sports Network, many of which have international counterparts. Furthermore, this segment is responsible for domestic and international television production through studios like CBS Studios, Paramount Television Studios, and Showtime/MTV Entertainment Studios. It also oversees CBS Media Ventures, a unit dedicated to producing and distributing original syndicated content, and manages digital news and sports platforms such as CBS News Streaming and CBS Sports HQ. The Direct-to-Consumer segment focuses on delivering content directly to audiences through a diverse portfolio of both subscription and free streaming services, available both domestically and internationally. Key platforms include Paramount+, Pluto TV, and BET+. Paramount's Filmed Entertainment division is dedicated to creating and acquiring feature films, series, and shorter-form content. This content is then globally released and licensed across various mediums, such as cinematic distribution, streaming platforms, traditional television broadcasts, digital home entertainment, and physical formats like DVDs and Blu-rays. This segment boasts an impressive collection of studios, including Paramount Pictures, Paramount Players, Paramount Animation, Nickelodeon Studio, Awesomeness, and Miramax. Beyond content creation, the company also offers comprehensive services in production, content distribution, and advertising. Originally known as ViacomCBS Inc., the company adopted the name Paramount Global in February 2022. Founded in 1914 and headquartered in New York, New York, Paramount Global is ultimately controlled by National Amusements, Inc. as a subsidiary.

Fair Value Reference Estimate

Latest Earnings Call Takeaways

2026 Q2 (Aug 4, 2026)

1) Strategic Priorities and Leadership Update
- Paramount is focused on three main priorities: investing in storytelling, scaling its direct-to-consumer (DTC) business globally, and driving enterprise-wide efficiency.
- The company nearly doubled its theatrical slate and greenlit 40 new and returning series for Paramount+.
- Paramount+ has grown to nearly 82 million subscribers, achieving its best retention quarter ever and double-digit growth in total view hours.
- The company is confident in its strategy and is optimistic about future opportunities, particularly with the proposed merger with Warner Bros. Discovery, which has received approvals from 65 jurisdictions.

2) Financial Performance and Segment Results
- Paramount reported a 16% year-over-year revenue growth for Paramount+, with 2 million new subscribers added in the quarter, reaching 81.6 million globally.
- The Studios segment saw a profitable quarter with adjusted EBITDA of $36 million, up from a loss last year, and revenue growth of 16%.
- TV Media's profit increased by 14%, despite a revenue decline due to the shift away from linear TV.
- The company is tracking to achieve over $2.7 billion in run rate efficiencies by year-end, with expectations of exceeding $3 billion from the Skydance-Paramount merger.

3) Challenges and Headwinds
- The company faces challenges in the advertising market, with TV Media advertising revenue declining 14% year-over-year, impacted by the absence of NCAA events compared to the previous year.
- There are ongoing litigation concerns regarding the Warner Bros. Discovery transaction, although management remains confident in a favorable outcome.
- The Studios segment's profitability is expected to be more heavily weighted in the first half of the year, with some pressures anticipated in the second half.

4) Operational Plans and Product Development
- Paramount is on track to complete the convergence of its streaming platforms, including Paramount+, Pluto, and BET+, by the end of summer 2026.
- The company plans to enhance user experience through improved personalization, recommendation quality, and ad monetization.
- Paramount is committed to investing in both content and technology to drive growth in its DTC business, with a focus on live sports and premium content offerings.
- The company is also exploring partnerships to expand its distribution while maintaining a direct relationship with consumers.

5) Guidance and Outlook
- Paramount has raised its FY 2026 adjusted EBITDA guidance to a range of $3.8 billion to $3.9 billion, while maintaining its revenue outlook of $30 billion.
- The company expects free cash flow conversion to be at least 10%, up from a previous estimate of 5%.
- For Q3, revenue guidance is set between $6.95 billion and $7.15 billion, reflecting growth of 4% to 7% year-over-year.
- The company anticipates continued growth in DTC revenue and improved profitability in the Studios segment.

Bottom line: Paramount is executing its strategic priorities effectively, demonstrating strong subscriber growth and profitability improvements across its segments. The ongoing merger with Warner Bros. Discovery presents both opportunities and challenges, but management's confidence in their strategy and operational efficiency positions the company well for future growth.

Annual report links (10K)

2025