A review of our perspective on the company, underlying data and the stock follows in this note.
RISKS. Discovery investors face risks from 1) reliance on a handful of core network brands 2) perceptions by many investors and industry participants regarding the “death of TV advertising”, and 3) deceleration in pay TV subscription growth or reduced ARPUs around the world.
VALUATION: We value Discovery using a DCF, with a near-term discount rate of 6.1%, a long-term discount rate of 13.5% and a 3.0% long-term growth rate.
FULL REPORT INCLUDING RISKS AND DISCLOSURES CAN BE FOUND HERE: DISCA 6-4-18.pdf
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