Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Media industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Media Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Media Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Media industry for Monday, November 04, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Media industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Cable One, Inc.’s Value Grade

Value Grade:

Cable One, Inc., together with its subsidiaries, provides data, video, and voice services in the United States. The company offers residential data services, a service to enhance Wi-Fi signal throughout the home. It also provides various residential video services from basic video service to digital services with access to hundreds of channels; and provides a cloud-based DVR feature that does not require the use of a set-top boxes. In addition, the company offers Sparklight TV, an IPTV video service that allows customers to stream its video channels from the cloud through an app on supported devices, such as the Amazon Firestick, Apple TV, and Android-based smart televisions. Further, it provides data, voice, and video products to business customers, including small to mid-markets, enterprises, and wholesale and carrier customers. The company serves residential and business customers, comprising data, video, and voice services. Cable One, Inc. was incorporated in 1980 and is headquartered in Phoenix, Arizona.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Cable One, Inc. has a Value Score of 89, which is considered to be undervalued.

When you look at Cable One, Inc.’s price-to-sales ratio at 1.25 compared to the industry median at 0.59, this company has a higher price relative to revenue compared to its peers. This could make Cable One, Inc.’s stock less attractive for value investors.

Cable One, Inc.’s price-earnings ratio is 10.10 compared to the industry median at 14.00. This means it has a lower share price relative to earnings compared to its peers. This could make Cable One, Inc. more attractive for value investors.

Now, let’s assess Cable One, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 8.0, when compared to the industry median of 9.3, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Cable One, Inc.’s shareholder yield is higher than its industry median ratio of 0.00%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Cable One, Inc.’s price-to-book ratio is lower than its industry median ratio of 1.42. This could make Cable One, Inc. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Cable One, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Cable One, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 12.90. This could make Cable One, Inc. more attractive because the lower P/FCF ratio indicates that Cable One, Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Gannett Co., Inc.’s Value Grade

Value Grade:

Gannett Co., Inc. operates as a media and marketing solutions company in the United States. It operates through three segments: Domestic Gannett Media, Newsquest, and Digital Marketing Solutions. The company’s print offerings includes home delivery on a subscription basis; single copy; non-daily publications, such as shoppers and niche publications. It also provides digital-only subscription, including local media brands, USA TODAY NETWORK community events platform, magazines, sports, and games; and E-newspapers; and digital advertising and marketing services. In addition, the company offers digital news and media brands; daily and weekly newspapers; digital marketing solutions, such as online presence solutions, online advertising products, conversion software, and cloud-based software solutions; commercial printing and distribution services; and prints commercial materials, including flyers, business cards, and invitations. The company was formerly known as New Media Investment Group Inc. and changed its name to Gannett Co., Inc. in November 2019. Gannett Co., Inc. was incorporated in 2013 and is headquartered in Pittsford, New York.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Gannett Co., Inc. has a Value Score of 79, which is considered to be undervalued.

Gannett Co., Inc.’s price-to-book ratio is lower than its peers. This could make Gannett Co., Inc. more attractive for value investors when compared to the industry median at 1.42.

You can read more about Gannett Co., Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Gray Television, Inc.’s Value Grade

Value Grade:

Gray Television, Inc., a television broadcasting company, owns and/or operates television stations and digital assets in the United States. It also broadcasts secondary digital channels affiliated to ABC, CBS, NBC, and FOX, as well as various other networks and program services, including CW Plus Network, MY Network, the MeTV Network, Circle, Telemundo, THE365, and Outlaw; and local news/weather channels in various markets. It owns and operates television stations and digital assets that serve television markets in the United States. The company was formerly known as Gray Communications Systems, Inc. and changed its name to Gray Television, Inc. in August 2002. Gray Television, Inc. was founded in 1891 and is headquartered in Atlanta, Georgia.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Gray Television, Inc. has a Value Score of 83, which is considered to be undervalued.

Gray Television, Inc.’s price-earnings ratio is 59.7 compared to the industry median at 14.0. This means that it has a higher price relative to its earnings compared to its peers. This makes Gray Television, Inc. less attractive for value investors.

Gray Television, Inc.’s price-to-book ratio is higher than its peers. This could make Gray Television, Inc. less attractive for value investors when compared to the industry median at 1.42.

You can read more about Gray Television, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

comScore, Inc.’s Value Grade

Value Grade:

comScore, Inc. operates as an information and analytics company that measures audiences, consumer behavior, and advertising across media platforms in the United States, Europe, Latin America, Canada, and internationally. The company provides digital ad solutions, including Media Metrix Multi-Platform and Mobile Metrix, which measure websites and applications on computers, smartphones, and tablets; Video Metrix that delivers measurement of digital video consumption; Plan Metrix, which offers understanding of consumer lifestyle; Total Home Panel Suite, which capture OTT, connected TV, and IOT device usage and content consumption; CCR, which enhances validated campaign essentials verification of mobile and desktop video campaigns; XMedia Enhanced, which provides a deduplicated view of national programming content; Comscore marketing solutions; Lift Models, which measures the impact of advertising on a brand; Survey Analytics, which measure various consumer insights including brand health metrics; and Activation Solutions, including audience activation and content activation. The company’s cross platform solutions products and services comprises Comscore TV–National that helps customers understand the performance of network advertising campaigns; Comscore TV–Local allows customers to understand consumer viewing patterns and characteristics; OnDemand Essentials that provides transactional tracking and reporting; Movie Solutions; and Hollywood Software Suite. In addition, it offers custom solutions for planning, optimization, and evaluation of advertising campaigns and brand protection. Further, the company provides products that measure movie viewership and box office results by capturing movie ticket sales in real time or near real time. It serves digital publishers, television networks, movie studios, content owners, brand advertisers, agencies, and technology providers. The company was incorporated in 1999 and is headquartered in Reston, Virginia.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

comScore, Inc. has a Value Score of 82, which is considered to be undervalued.

comScore, Inc.’s price-to-book ratio is higher than its peers. This could make comScore, Inc. less attractive for value investors when compared to the industry median at 1.42.

You can read more about comScore, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Star Fashion Culture Holdings Limited’s Value Grade

Value Grade:

Star Fashion Culture Holdings Limited provides content marketing solutions services in the People’s Republic of China. It offers marketing campaign planning and execution services; offline advertising services; and online precision marketing services. The company was founded in 2015 and is based in Xiamen, the People’s Republic of China. Star Fashion Culture Holdings Limited operates as a subsidiary of Xingji ZhangPingting Limited.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Star Fashion Culture Holdings Limited has a Value Score of 63, which is considered to be undervalued.

Star Fashion Culture Holdings Limited’s price-earnings ratio is 32.0 compared to the industry median at 14.0. This means that it has a higher price relative to its earnings compared to its peers. This makes Star Fashion Culture Holdings Limited less attractive for value investors.

You can read more about Star Fashion Culture Holdings Limited’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Grupo Televisa, S.A.B.’s Value Grade

Value Grade:

Grupo Televisa, S.A.B., together with its subsidiaries, owns and operates cable companies and provides direct-to-home satellite pay television system in Mexico and the United States. It operates through three segments: Cable, Sky, and Other Businesses. The Cable segment operates cable multiple system that provides basic and premium television subscription, pay-per-view, installation, Internet subscription, and telephone and mobile services subscription, as well as local and national advertising services; and telecommunication facilities, which offers data and long-distance services solutions to carriers and other telecommunications service providers through its fiber-optic network. The Sky segment offers direct-to-home broadcast satellite pay television services comprising program, installation, and equipment rental services to subscribers in Mexico, Central America, and the Dominican Republic; and national advertising sales. The Other Businesses segment is involved in the sports and show business promotion, soccer, publishing and publishing distribution, and gaming, as well as provides transmission concessions and facilities. The company was founded in 1969 and is headquartered in Mexico City, Mexico.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Grupo Televisa, S.A.B. has a Value Score of 100, which is considered to be undervalued.

Grupo Televisa, S.A.B.’s price-to-book ratio is higher than its peers. This could make Grupo Televisa, S.A.B. less attractive for value investors when compared to the industry median at 1.42.

You can read more about Grupo Televisa, S.A.B.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

WideOpenWest, Inc.’s Value Grade

Value Grade:

WideOpenWest, Inc. provides high speed data, cable television, and digital telephony services to residential and business services customers in the United States. The company’s video services include basic cable services that comprise local broadcast television and local community programming; digital cable services; WOW tv+ that offers traditional cable video and cloud DVR functionality, voice remote with Google Assistant, and Netflix integration along with access to various streaming services and apps through the Google Play Store; and commercial-free movies, TV shows, sports, and other special event entertainment programs. Its telephony services consist of local and long-distance telephone services; business telephony and data services include fiber based, office-to-office metro Ethernet, session-initiated protocol trunking, colocation infrastructure, cloud computing, managed backup, and recovery services. The company was formerly known as WideOpenWest Kite, Inc. and changed its name to WideOpenWest, Inc. in March 2017. WideOpenWest, Inc. was founded in 2001 and is based in Englewood, Colorado.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

WideOpenWest, Inc. has a Value Score of 70, which is considered to be undervalued.

WideOpenWest, Inc.’s price-to-book ratio is lower than its peers. This could make WideOpenWest, Inc. more attractive for value investors when compared to the industry median at 1.42.

You can read more about WideOpenWest, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Media Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Media stocks as well as other industrys.

Choosing Which of the 7 Best Media Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Cable One, Inc. stock has a Value Grade of A.
• Gannett Co., Inc. stock has a Value Grade of B.
• Gray Television, Inc. stock has a Value Grade of A.
• comScore, Inc. stock has a Value Grade of A.
• Star Fashion Culture Holdings Limited stock has a Value Grade of B.
• Grupo Televisa, S.A.B. stock has a Value Grade of A.
• WideOpenWest, Inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 undervalued stocks in the Media industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Media Stocks

Want to learn more about Media stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 7 Undervalued Media Stocks for Monday, November 04
• 7 Undervalued Media Stocks for Friday, November 01
• GICS Decoded: Analyzing Stocks With S&P; Global Sectors and Industries
• 7 Undervalued Media Stocks for Thursday, October 31

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.