As of June 19, 2025, ViacomCBS Inc's estimated intrinsic value ranges from $37.11 to $66.05 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $63.63 | +115.1% |
| Discounted Cash Flow (5Y) | $54.82 | +85.3% |
| Dividend Discount Model (Multi-Stage) | $37.11 | +25.5% |
| Dividend Discount Model (Stable) | $41.59 | +40.6% |
| Earnings Power Value | $66.05 | +123.3% |
Is ViacomCBS Inc (VIAC) undervalued or overvalued?
With the current market price at $29.58, 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 ViacomCBS 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 | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 1.04 | 1.17 |
| Cost of equity | 7.6% | 10.3% |
| Cost of debt | 4.5% | 7.8% |
| Tax rate | 16.8% | 17.9% |
| Debt/Equity ratio | 0.85 | 0.85 |
| After-tax WACC | 5.8% | 8.5% |
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 | $55 | $56,071M | 75.8% |
| 10-Year Growth | $64 | $63,008M | 56.8% |
| 5-Year EBITDA | $22 | $29,991M | 54.8% |
| 10-Year EBITDA | $35 | $40,546M | 32.9% |
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 | $4,488M |
| Discount Rate (WACC) | 8.5% - 5.8% |
| Enterprise Value | $52,681M - $77,149M |
| Net Debt | $12,888M |
| Equity Value | $39,793M - $64,261M |
| Outstanding Shares | 788M |
| Fair Value | $51 - $82 |
| Selected Fair Value | $66.05 |
| Metric | Value |
|---|---|
| Market Capitalization | $23300M |
| Enterprise Value | $36188M |
| Trailing P/E | 7.07 |
| Forward P/E | 8.11 |
| Trailing EV/EBITDA | 4.25 |
| Current Dividend Yield | 267.38% |
| Dividend Growth Rate (5Y) | 20.14% |
| Debt-to-Equity Ratio | 0.85 |
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% | $19.09 |
| Discounted Cash Flow (5Y) | 25% | $13.71 |
| Dividend Discount Model (Multi-Stage) | 20% | $7.42 |
| Dividend Discount Model (Stable) | 15% | $6.24 |
| Earnings Power Value | 10% | $6.60 |
| Weighted Average | 100% | $53.06 |
Based on our comprehensive valuation analysis, ViacomCBS Inc's weighted average intrinsic value is $53.06, which is approximately 79.4% above the current market price of $29.58.
Key investment considerations:
Given these factors, we believe ViacomCBS Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.