ITV (ITV.L)
Communications · LSE · UK
Fundamentals
Valuation and ratings
ITV trades at £0.73, which is 123% below the £1.63 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 31 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 12.3 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About ITV
ITV plc, a vertically integrated production, broadcasting, and streaming company, which creates, owns, and distributes content on various platforms worldwide. It operates through ITV Studios and Media & Entertainment segments. The ITV Studios segment creates and produces original scripted and unscripted content for a diverse customer base of global streamers, major networks, and cable channels, as well as local free to air and pay TV broadcasters, and operators across its production bases. The Media & Entertainment segment broadcasts and streams various contents on its family of free-to-air TV channels, as well as through ITVX and third-party partners; and offers television advertising services, online advertising, and advertising around its content on YouTube. ITV plc was founded in 1955 and is based in London, the United Kingdom.
ITV.L passes 4 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is ITV (ITV.L) undervalued?
Against our discounted cash flow estimate of £1.63, ITV.L at £0.73 is 123% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is ITV.L's P/E ratio?
ITV.L trades at 12.3 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.