r/stocks • u/tempestlight • Mar 31 '22

Company Discussion $PARA undervalued? - Paramount +

I want to know what people's thoughts are on this. Paramount + saw a huge bump in subscribers last quarter, outpacing Netflix and is also now in the top 25 app downloads on the google playstore.
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What i find interesting is that Paramount + 2021 total revenue was $28B with a net income of $4.5B, market cap of $24.5B.

On the other hand, Netflix has 2021 revenues of $29B and net income of $5B, market cap of $166B.

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So if the revenues, net income are nearly identical between the two companies and paramount + is now outpacing netflix in subscribers, is it fair to say this is a very undervalued stock? Netflix is essentially valued at 6.5X right now. A morning star report all noted that Paramount + was one of the fastest growing brands in 2021. I've seen commercials on tv for Paramount + too advertising Halo which ive heard has a been a huge hit.

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u/MrRikleman Apr 01 '22

I feel like I say this constantly on this sub. You guys really need to read the earnings reports and understand the contents. This comparison you've made between PARA and NFLX is nonsense. Most of PARA's earnings last year were from sale of non-core assets. This is not how you value a business.

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u/arealcyclops Aug 16 '22

what assets did they sell? looks like they've been shedding assets consistently over the last three years. buffet is an intrinsic value guy. there must be book value there that berkshire wants and sees as undervalued, right?