As of June 3, 2025, New York Times Co's estimated intrinsic value ranges from $30.38 to $64.91 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $64.91 | +13.9% |
| Discounted Cash Flow (5Y) | $59.66 | +4.7% |
| Dividend Discount Model (Multi-Stage) | $30.38 | -46.7% |
| Dividend Discount Model (Stable) | $40.03 | -29.8% |
| Earnings Power Value | $37.62 | -34.0% |
Is New York Times Co (NYT) undervalued or overvalued?
With the current market price at $56.99, the stock appears to be moderately overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate New York Times Co's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.59 | 1.02 |
| Cost of equity | 6.6% | 10.6% |
| Cost of debt | 4.5% | 4.5% |
| Tax rate | 23.3% | 23.7% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 5.0% | 7.0% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $60 | $9,545M | 87.1% |
| 10-Year Growth | $65 | $10,400M | 75.9% |
| 5-Year EBITDA | $23 | $3,592M | 65.7% |
| 10-Year EBITDA | $30 | $4,727M | 47.0% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $347M |
| Discount Rate (WACC) | 7.0% - 5.0% |
| Enterprise Value | $4,962M - $6,941M |
| Net Debt | $(183)M |
| Equity Value | $5,144M - $7,123M |
| Outstanding Shares | 163M |
| Fair Value | $32 - $44 |
| Selected Fair Value | $37.62 |
| Metric | Value |
|---|---|
| Market Capitalization | $9292M |
| Enterprise Value | $9110M |
| Trailing P/E | 30.67 |
| Forward P/E | 29.54 |
| Trailing EV/EBITDA | 6.30 |
| Current Dividend Yield | 92.67% |
| Dividend Growth Rate (5Y) | 21.20% |
| Debt-to-Equity Ratio | 0.93 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $19.47 |
| Discounted Cash Flow (5Y) | 25% | $14.91 |
| Dividend Discount Model (Multi-Stage) | 20% | $6.08 |
| Dividend Discount Model (Stable) | 15% | $6.01 |
| Earnings Power Value | 10% | $3.76 |
| Weighted Average | 100% | $50.23 |
Based on our comprehensive valuation analysis, New York Times Co's weighted average intrinsic value is $50.23, which is approximately 11.9% below the current market price of $56.99.
Key investment considerations:
Given these factors, we believe New York Times Co is currently moderately overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.