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Gray Television, Inc. – Television Broadcasting
Gray Television is a television broadcast company headquartered in Atlanta, Georgia. Gray is the largest owner of top-rated local television stations and digital assets in the United States ("U.S."). Gray currently owns and/or operates television stations and leading digital properties in 94 television markets that collectively reach approximately 24% of U.S. television households. During 2020, Gray's stations were ranked first in 70 markets, and ranked first and/or second in 86 markets, as calculated by Comscore's audience measurement service. Gray also owns video program production, marketing, and digital businesses including Raycom Sports, Tupelo Honey, and RTM Studios, the producer of PowerNation programs and content, and is the majority owner of Swirl Films.
Analysis Results
Intrinsic Value $406.78
Latest Price $15.27
Relative Value 96% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 19.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.597 0.581
2023 0.712 0.675
2024 0.848 0.783
2025 1.01 0.908
2026 1.21 1.05
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 36.2 billion. This corresponds to a present value of 30.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.0 billion. Adding in the terminal value gives a total present value of 34.8 billion.

There are presently 85.5 million outstanding shares, so the intrinsic value per share is 406.78.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 963,000,000
Current Cash 189,000,000
Current Liabilities 384,000,000
Current Debt 15,000,000
Non-Cash Working Capital (NCWC) 405,000,000
Change in NCWC 129,000,000
EBIT 423,000,000
Tax Provision 78,000,000
Depreciation and Amortization 259,000,000
Capital Expenditure -207,000,000
Unlevered Free Cash Flow 407,607,142
Current Assets 1,304,000,000
Current Cash 773,000,000
Current Liabilities 255,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 276,000,000
Change in NCWC 62,000,000
EBIT 723,000,000
Tax Provision 134,000,000
Depreciation and Amortization 239,000,000
Capital Expenditure -110,000,000
Unlevered Free Cash Flow 735,908,088
Current Assets 672,000,000
Current Cash 212,000,000
Current Liabilities 246,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 214,000,000
Change in NCWC 158,631,000
EBIT 424,000,000
Tax Provision 76,000,000
Depreciation and Amortization 234,000,000
Capital Expenditure -110,000,000
Unlevered Free Cash Flow 580,262,372
Current Assets 872,745,000
Current Cash 666,980,000
Current Liabilities 150,396,000
Current Debt 0
Non-Cash Working Capital (NCWC) 55,369,000
Change in NCWC -24,101,000
EBIT 372,366,000
Tax Provision 76,847,000
Depreciation and Amortization 95,869,000
Capital Expenditure -69,975,000
Unlevered Free Cash Flow 274,679,736
Current Assets 666,757,000
Current Cash 462,399,000
Current Liabilities 131,305,000
Current Debt 6,417,000
Non-Cash Working Capital (NCWC) 79,470,000
Change in NCWC -12,245,000
EBIT 217,026,000
Tax Provision -68,674,000
Depreciation and Amortization 98,078,000
Capital Expenditure -34,516,000
Unlevered Free Cash Flow 268,343,000
Current Assets 536,311,000
Current Cash 325,189,000
Current Liabilities 119,407,000
Current Debt 0
Non-Cash Working Capital (NCWC) 91,715,000
Change in NCWC -8,826,000
EBIT 234,468,000
Tax Provision 43,418,000
Depreciation and Amortization 81,520,000
Capital Expenditure -43,604,000
Unlevered Free Cash Flow 167,238,241
Current Assets 285,454,000
Current Cash 97,318,000
Current Liabilities 87,595,000
Current Debt 0
Non-Cash Working Capital (NCWC) 100,541,000
Change in NCWC 43,028,000
EBIT 140,137,000
Tax Provision 26,448,000
Depreciation and Amortization 63,654,000
Capital Expenditure -24,222,000
Unlevered Free Cash Flow 166,225,901
Current Assets 168,304,000
Current Cash 30,769,000
Current Liabilities 80,022,000
Current Debt 0
Non-Cash Working Capital (NCWC) 57,513,000
Change in NCWC 3,265,000
EBIT 154,396,000
Tax Provision 31,736,000
Depreciation and Amortization 51,416,000
Capital Expenditure -32,215,000
Unlevered Free Cash Flow 115,457,292
Current Assets 130,587,000
Current Cash 13,478,000
Current Liabilities 63,085,000
Current Debt 224,000
Non-Cash Working Capital (NCWC) 54,248,000
Change in NCWC 16,649,000
EBIT 84,645,000
Tax Provision 13,147,000
Depreciation and Amortization 35,799,000
Capital Expenditure -24,053,000
Unlevered Free Cash Flow 77,639,083
Current Assets 96,383,000
Current Cash 11,067,000
Current Liabilities 47,717,000
Current Debt 0
Non-Cash Working Capital (NCWC) 37,599,000
Change in NCWC 8,148,000
EBIT 153,410,000
Tax Provision 19,188,000
Depreciation and Amortization 34,289,000
Capital Expenditure -24,523,000
Unlevered Free Cash Flow 109,113,143

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