Just coming on to share the mind-bogglingly low valuation of Paramount (PARA). Consider the following:
1.) Paramount possesses the fastest growing streaming offering in the market, Paramount+.
2.) Paramount owns CBS and has the rights to broadcast most NFL games as well as Premier League Soccer.
3.) Paramount Pictures has had a wildly successful year, including the release of Top Gun Maverick, the 5th highest grossing film of all time.
Despite this, PARA shares are trading at an embarrassingly low valuation:
1.) Price/earnings multiple of less than 8.
2.) Approximately one third price/sales.
3.) Less than half of book value.
Paramount is definitely a company in transition, but this valuation dislocation is borderline criminal. On top of this beautiful stock sundae, you get more than 6% in dividend yield just to hold the shares while you wait for the price to normalize, and the short interest is just under 15%. Disclosure – I currently own 20 PARA LEAPs with an expiration of January 20 2024.
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