DCF Tool

NXST

Nexstar Media Group Inc – Television Broadcasting
Nexstar Media Group is a leading diversified media company that leverages localism to bring new services and value to consumers and advertisers through its traditional media, digital and mobile media platforms. Its wholly owned operating subsidiary, Nexstar Inc., consists of three divisions: Broadcasting, Digital, and Networks. The Broadcasting Division operates, programs, or provides sales and other services to 198 television stations and related digital multicast signals reaching 116 markets or approximately 39% of all U.S. television households (reflecting the FCC's UHF discount). The division's portfolio includes primary affiliates of NBC, CBS, ABC, FOX, MyNetworkTV and The CW. The Digital Division operates 122 local websites and 316 mobile apps offering hyper-local content and verticals for consumers and advertisers, allowing audiences to choose where, when and how they access content and creating new revenue opportunities for the company. The Networks Division operates NewsNation, formerly WGN America, a national news and entertainment cable network reaching 75 million television homes, multicast network Antenna TV, and WGN Radio in Chicago. Nexstar also owns a 31.3% ownership stake in TV Food Network, a top tier cable asset.
Analysis Results
Intrinsic Value $3,670.80
Latest Price $171.21
Relative Value 95% undervalued
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Cash Flow (Billions)
Analysis Parameters
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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 33.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 33.0%, 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 2.13 2.02
2023 2.84 2.54
2024 3.78 3.2
2025 5.02 4.02
2026 6.68 5.06
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 183 billion. This corresponds to a present value of 131 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 16.8 billion. Adding in the terminal value gives a total present value of 148 billion.

There are presently 40.4 million outstanding shares, so the intrinsic value per share is 3670.8.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,412,719,000
Current Cash 190,868,000
Current Liabilities 787,294,000
Current Debt 47,170,000
Non-Cash Working Capital (NCWC) 481,727,000
Change in NCWC 133,905,000
EBIT 1,297,760,000
Tax Provision 262,878,000
Depreciation and Amortization 588,545,000
Capital Expenditure -150,761,000
Unlevered Free Cash Flow 1,557,413,707
Current Assets 1,209,982,000
Current Cash 152,701,000
Current Liabilities 730,888,000
Current Debt 21,429,000
Non-Cash Working Capital (NCWC) 347,822,000
Change in NCWC 66,372,000
EBIT 1,373,958,000
Tax Provision 296,508,000
Depreciation and Amortization 564,888,000
Capital Expenditure -217,038,000
Unlevered Free Cash Flow 1,419,357,493
Current Assets 1,351,767,000
Current Cash 232,070,000
Current Liabilities 947,557,000
Current Debt 109,310,000
Non-Cash Working Capital (NCWC) 281,450,000
Change in NCWC -32,431,000
EBIT 569,926,000
Tax Provision 137,026,000
Depreciation and Amortization 408,710,000
Capital Expenditure -197,511,000
Unlevered Free Cash Flow 539,504,910
Current Assets 767,075,000
Current Cash 145,115,000
Current Liabilities 404,172,000
Current Debt 96,093,000
Non-Cash Working Capital (NCWC) 313,881,000
Change in NCWC -48,790,000
EBIT 748,309,000
Tax Provision 144,680,000
Depreciation and Amortization 320,537,000
Capital Expenditure -106,246,000
Unlevered Free Cash Flow 710,664,560
Current Assets 1,056,218,000
Current Cash 115,652,000
Current Liabilities 670,703,000
Current Debt 92,808,000
Non-Cash Working Capital (NCWC) 362,671,000
Change in NCWC 248,619,000
EBIT 481,014,000
Tax Provision -233,943,000
Depreciation and Amortization 323,066,000
Capital Expenditure -72,461,000
Unlevered Free Cash Flow 980,238,000
Current Assets 363,217,000
Current Cash 87,680,000
Current Liabilities 189,578,000
Current Debt 28,093,000
Non-Cash Working Capital (NCWC) 114,052,000
Change in NCWC 21,362,000
EBIT 302,570,000
Tax Provision 77,572,000
Depreciation and Amortization 120,333,000
Capital Expenditure -31,870,000
Unlevered Free Cash Flow 274,874,141
Current Assets 260,028,000
Current Cash 43,416,000
Current Liabilities 146,061,000
Current Debt 22,139,000
Non-Cash Working Capital (NCWC) 92,690,000
Change in NCWC -11,636,000
EBIT 206,107,000
Tax Provision 48,687,000
Depreciation and Amortization 117,851,000
Capital Expenditure -29,021,000
Unlevered Free Cash Flow 203,068,078
Current Assets 317,664,000
Current Cash 131,912,000
Current Liabilities 97,266,000
Current Debt 15,840,000
Non-Cash Working Capital (NCWC) 104,326,000
Change in NCWC 20,253,000
EBIT 173,875,000
Tax Provision 46,101,000
Depreciation and Amortization 72,531,000
Capital Expenditure -20,389,000
Unlevered Free Cash Flow 173,827,714
Current Assets 201,166,000
Current Cash 40,028,000
Current Liabilities 83,922,000
Current Debt 6,857,000
Non-Cash Working Capital (NCWC) 84,073,000
Change in NCWC 45,574,000
EBIT 104,521,000
Tax Provision 2,600,000
Depreciation and Amortization 76,339,000
Capital Expenditure -18,955,000
Unlevered Free Cash Flow 204,879,000
Current Assets 163,326,000
Current Cash 68,999,000
Current Liabilities 58,003,000
Current Debt 2,175,000
Non-Cash Working Capital (NCWC) 38,499,000
Change in NCWC 4,926,000
EBIT 100,373,000
Tax Provision -132,279,000
Depreciation and Amortization 55,140,000
Capital Expenditure -17,260,000
Unlevered Free Cash Flow 143,179,000

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