| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 90.22 | 1502 |
| Intrinsic value (DCF) | 0.69 | -88 |
| Graham-Dodd Method | 9.54 | 69 |
| Graham Formula | 73.63 | 1208 |
Gray Television, Inc. (NYSE: GTN) is a leading television broadcasting company in the United States, owning and operating 113 television stations and digital assets across diverse markets. Specializing in local and network-affiliated broadcasting, GTN delivers content through major networks like ABC, CBS, NBC, and FOX, alongside secondary digital channels such as CW Plus, MeTV, Telemundo, and Cozi. Founded in 1891 and headquartered in Atlanta, Georgia, Gray Television has evolved into a key player in the Communication Services sector, emphasizing local news, weather, and entertainment programming. The company’s robust digital strategy enhances its reach, catering to cord-cutters with streaming and on-demand services. With a market cap of ~$360M and revenue of $3.64B (latest fiscal year), GTN’s scale and localized content production position it as a resilient operator in the competitive broadcasting industry, despite challenges from digital disruption and advertising volatility.
Gray Television presents a mixed investment profile. Its extensive local market footprint and diversified network affiliations provide stable revenue streams, particularly from political advertising during election cycles. However, the company carries significant debt ($5.69B) against modest cash reserves ($135M), raising leverage concerns. A beta of 1.17 indicates higher volatility relative to the market, reflecting sensitivity to advertising cyclicality and cord-cutting trends. While GTN’s diluted EPS of $3.36 and operating cash flow of $751M (latest fiscal year) demonstrate profitability, its dividend yield (~1.5% at current share price) is modest. Investors should weigh its entrenched local presence against structural industry headwinds, including streaming competition and regulatory risks.
Gray Television’s competitive advantage lies in its hyper-localized content strategy and ownership of stations in mid-sized markets, where it faces less competition from national streaming platforms. Its secondary digital channels (e.g., MeTV, Telemundo) diversify revenue beyond traditional ad sales, tapping into niche audiences. However, GTN’s heavy reliance on advertising (particularly political spending) exposes it to cyclicality, while its high debt load limits flexibility compared to peers. The company’s scale in local news production is a differentiator, but it struggles to monetize digital audiences as effectively as pure-play streaming rivals. Competitors like Nexstar Media Group leverage larger national reach and stronger balance sheets to invest in hybrid broadcast/streaming models, whereas GTN’s regional focus may limit growth. Its ability to negotiate retransmission fees from cable providers remains a key strength, though rising programming costs and affiliate fee disputes pose risks.