Is Grupo Televisa SAB outlook positive for August 2023?

Grupo Televisa SAB (USA Stocks: TV), a key player in the Telecom Services industry, has been on a roller coaster ride with a five-year return of just 0.61%. The company's financial health appears shaky, with a probability of bankruptcy standing at 42.01%. Despite a high net asset value of 297.71B, the company has reported a loss in operating income of 1.5B and a net income applicable to common shares of 43.2B. The company's market capitalization stands at a mere 2.8B, significantly lower than its net asset value, suggesting that the stock may be undervalued. The Price to Book ratio of 0.42X further indicates that the stock is trading at a discount to its book value. However, investors should be cautious as the company's PEG ratio of 2.1685 suggests that it may be overvalued when factoring in its expected growth. Televisa's financial stability is also reflected in its current ratio of 2.47X, indicating its ability to meet short-term obligations. However, the company has significant liabilities with long-term debt and capital lease obligations amounting to 104.2B and 8.4B respectively. The company's cash flow from operations stands at 6.88B, which should help it manage its debt obligations. Despite the negative earnings, the company has paid dividends amounting to 1.1B, with a last dividend paid at 0.35 and a yield of 0.0189%. This suggests that the company is committed to returning value to its shareholders. In conclusion, while Grupo Televisa SAB's financial performance has been less than stellar, its low market capitalization compared to its net asset value and its commitment to paying dividends could make it an attractive option for value investors. However, the high probability of bankruptcy and significant debt obligations suggest a high level of risk. Investors should carefully consider these factors before making an investment decision. As more millennials are increasingly engaging with the media sector, it's logical to turn our attention to Grupo Televisa SAB. We will analyze why recent price movements in Grupo Televisa's stock suggest a potential rebound in August. What is the company's current valuation in 2023? We will delve into Grupo Televisa SAB's perspective on its valuation to provide investors with greater transparency before they decide to invest.
Published over six months ago
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Reviewed by Gabriel Shpitalnik

From a valuation perspective, Grupo Televisa SAB (USA Stocks: TV) presents a mixed bag for potential investors. The company's market capitalization is relatively low at 2.76B, with a price to earnings ratio of 7.78X, suggesting that the stock may be undervalued. However, the company's total debt stands at a significant 113.61B, which is concerning. Additionally, the company reported an operating income loss of 1.5B and a net income loss of 0.9 per share, indicating financial instability. Despite this, the company's retained earnings are substantial at 129.5B, and its probability of bankruptcy is 42.01%, suggesting that there may be potential for upside if the company can improve its financial performance.

Continual analysis of Grupo

The company, Grupo Televisa SAB, reports total liabilities of 113.61 billion, with a debt to equity ratio (D/E) of 0.79. This is a typical ratio for businesses in its industry. The company's Market Volatility, also known as Beta, is 1.8529, indicating a somewhat significant risk compared to the market. To interpret Grupo's beta in this context, if the market rises, the company is expected to outperform it. Conversely, if the market yields negative returns, Grupo Televisa is likely to underperform. While it's crucial to consider Grupo Televisa SAB's current price history, caution is advised when relying on equity's current price movements. Our approach to predicting a stock's future performance involves examining both its past performance charts and the overall business, including all available technical indicators. Grupo Televisa SAB provides fifteen different technical indicators that can assist in evaluating its performance. Grupo Televisa SAB is projected to have a return of -0.0971%. It's recommended to review Grupo Televisa's standard deviation, as well as the relationship between the Treynor ratio and potential upside, to determine if Grupo Televisa SAB's past performance will be replicated at some point in the near future.
We determine the current worth of Grupo Televisa SAB using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Grupo Televisa SAB based exclusively on its fundamental and basic technical indicators. By analyzing Grupo Televisa's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Grupo Televisa's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Grupo Televisa. We calculate exposure to Grupo Televisa's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Grupo Televisa's related companies.

Grupo Televisa SAB Investment Alerts

Grupo investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Grupo Televisa SAB performance across your portfolios.Please check all investment alerts for Grupo

Grupo Televisa Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Grupo value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Grupo Televisa competition to find correlations between indicators driving the intrinsic value of Grupo.

Grupo Televisa Gross Profit

Grupo Televisa Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Grupo Televisa previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Grupo Televisa Gross Profit growth over the last 10 years. Please check Grupo Televisa's gross profit and other fundamental indicators for more details.

Another angle On Grupo Televisa

The small fall in market price for the last few months created some momentum for sophisticated investors as it was traded today as low as 4.92 and as high as 5.06 per share. The company executives did not add much value to Grupo Televisa SAB investors in June. However, diversifying your holdings with Grupo Televisa SAB or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.31. The current volatility is consistent with the ongoing market swings in June 2023 as well as with Grupo Televisa SAB unsystematic, company-specific events.
 2020 2021 2023 (projected)
Book Value per Share108.89124.42175.17
Asset Turnover0.250.260.27

Margins Breakdown

Grupo profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Grupo Televisa itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Grupo Televisa profit margins.
0.64
Profit Margin
0.37
Gross Margin
EBITDA Margin0.81
Gross Margin0.37
Profit Margin0.64
Grupo Televisa Earnings Before Interest Taxes and Depreciation Amortization USD is fairly stable at the moment. Further, Grupo Televisa Earnings before Tax is increasing over the last 8 years. The latest value of Grupo Televisa Earnings before Tax is 46,917,722,053. Grupo Televisa Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. The previous year's value of Grupo Televisa Earnings Before Interest Taxes and Depreciation Amortization USD was 3,306,507,954. Further, Grupo Televisa Earnings before Tax is increasing over the last 8 years.
The latest value of Grupo Televisa Earnings before Tax is 46,917,722,053. Grupo Televisa SAB (USA Stocks: TV), a key player in the Telecom Services industry, is currently valued at a market capitalization of $2.76 billion. With a book value of 229.58 and a price to book ratio of 0.42X, the company appears to be undervalued. The company's current ratio stands at 2.47X, suggesting that it is in a good position to meet its short-term obligations. However, the company has a significant amount of debt, with short and long-term debt totaling $113.6 billion. The company's operating income shows a loss of $1.5 billion, which is concerning. The net interest income also indicates a loss of $7.4 billion. Despite these losses, the company has managed to generate $6.88 billion from its operations. The company's total assets stand at a staggering $297.7 billion, with cash and equivalents amounting to $51.13 billion. Over the past five years, the return on Grupo Televisa SAB's stock has been a modest 0.61%. Despite the current financial situation, the company's target price is $7.32, indicating potential for upside. Given these factors, investors might want to reconsider their investment in Grupo Televisa SAB. However, due to the high level of debt and operating losses, a cautious approach is recommended. .

Momentum Analysis of Grupo Televisa suggests possible reversal in August

The recent surge in Grupo Televisa SAB's standard deviation to over 2.39 indicates an increase in the stock's volatility, signaling potential risks and opportunities for traders. This heightened volatility, along with other market indicators, suggests a possible momentum reversal for the stock in August. Investors should closely monitor the stock's performance and market trends, as this could present a strategic entry or exit point. However, it's crucial to consider other market factors and your risk tolerance before making investment decisions. As of July 9th, Grupo Televisa retains a Market Risk Adjusted Performance of -0.001473, a standard deviation of 2.39, and a Risk Adjusted Performance of 0.0039. In terms of fundamental indicators, the technical analysis model allows you to examine the existing technical drivers of Grupo Televisa SAB, as well as their interrelationships. Simply put, you can use this information to determine if the firm will indeed mirror its model of historical price patterns, or if the prices will eventually revert. We were able to interpolate and analyze data for thirteen technical drivers for Grupo Televisa SAB, which can be compared to its competitors.
Please check out Grupo Televisa SAB's standard deviation, as well as the relationship between the Treynor ratio and potential upside to decide if Grupo Televisa is priced fairly, given that the market reflects its last-minute price of $4.95 per share. Considering that Grupo Televisa SAB has an information ratio of -0.008206, we strongly advise you to confirm Grupo Televisa SAB's regular market performance to ensure the company can sustain itself in the future. In conclusion, despite a modest market fall, Grupo Televisa SAB's stock has shown resilience with an upward trend. Analysts have provided a wide range of target prices, with the highest estimated target price at $12 and the lowest at $5. The average target price estimated value stands at $7.785, indicating a possible upside price of $7.05. However, with a valuation real value of $6.37, there is also a potential downside price of $2.44. Given the 7 estimates, 4 holds, and 3 strong buys, the analyst overall consensus for the stock is a 'Hold'. Therefore, investors should tread carefully and consider these factors before making an investment decision. .

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Grupo Televisa SAB. Please refer to our Terms of Use for any information regarding our disclosure principles.

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