As of June 6, 2025, OUTFRONT Media Inc's estimated intrinsic value ranges from $16.73 to $27.48 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $27.48 | +68.7% |
| Discounted Cash Flow (5Y) | $22.79 | +39.9% |
| Dividend Discount Model (Multi-Stage) | $20.62 | +26.6% |
| Dividend Discount Model (Stable) | $20.02 | +22.9% |
| Earnings Power Value | $16.73 | +2.7% |
Is OUTFRONT Media Inc (OUT) undervalued or overvalued?
With the current market price at $16.29, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate OUTFRONT Media Inc'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 | 0.63 | 0.76 |
| Cost of equity | 6.8% | 9.1% |
| Cost of debt | 5.1% | 9.1% |
| Tax rate | 3.2% | 5.0% |
| Debt/Equity ratio | 0.9 | 0.9 |
| After-tax WACC | 5.9% | 8.9% |
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 | $23 | $6,310M | 73.4% |
| 10-Year Growth | $27 | $7,094M | 55.8% |
| 5-Year EBITDA | $31 | $7,683M | 78.2% |
| 10-Year EBITDA | $34 | $8,153M | 61.5% |
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 | $376M |
| Discount Rate (WACC) | 8.9% - 5.9% |
| Enterprise Value | $4,224M - $6,372M |
| Net Debt | $2,503M |
| Equity Value | $1,721M - $3,868M |
| Outstanding Shares | 167M |
| Fair Value | $10 - $23 |
| Selected Fair Value | $16.73 |
| Metric | Value |
|---|---|
| Market Capitalization | $2722M |
| Enterprise Value | $5225M |
| Trailing P/E | 10.24 |
| Forward P/E | 10.57 |
| Trailing EV/EBITDA | 12.75 |
| Current Dividend Yield | 757.25% |
| Dividend Growth Rate (5Y) | 29.07% |
| Debt-to-Equity Ratio | 0.90 |
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% | $8.24 |
| Discounted Cash Flow (5Y) | 25% | $5.70 |
| Dividend Discount Model (Multi-Stage) | 20% | $4.12 |
| Dividend Discount Model (Stable) | 15% | $3.00 |
| Earnings Power Value | 10% | $1.67 |
| Weighted Average | 100% | $22.74 |
Based on our comprehensive valuation analysis, OUTFRONT Media Inc's weighted average intrinsic value is $22.74, which is approximately 39.6% above the current market price of $16.29.
Key investment considerations:
Given these factors, we believe OUTFRONT Media Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.