uploads///DIsh val metrics Feb

Dish Network and Its Valuation Metrics

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Dec. 4 2020, Updated 10:52 a.m. ET

Valuation metrics

Key valuation metrics include PE (price-to-earnings), EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization), PCF (price-to-cash-flow), and PFCF (price-to-free-cash-flow) multiples.

Price-based multiples measure a company’s value from a shareholder’s perspective. Enterprise value multiples help investors understand a company’s value from the perspective of stakeholders. These are forward multiples based on the expected value of the denominator after one year.

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Dish valuation

As the above graph shows, Dish Network (DISH) has a forward EV-to-EBITDA multiple of 13.5x and a PE multiple of 23.8x. By contrast, Time Warner (TWX) has a forward EV-to-EBITDA multiple of 10.2x and a PE multiple of 14.8x.

Peers Twenty-First Century Fox (FOXA) and Comcast (CMCSA) have forward EV-to-EBITDA multiples of 9.5x and 8.1x, respectively. In the peer group, Dish has the highest forward PE multiple at 23.8x.

Dish’s value proposition

We still don’t know whether Dish Network’s pay-TV subscriber base will continue to get a boost from its new version of Sling TV in the coming quarters. Given the rising competition from OTT (over-the-top) operators such as Netflix, it remains to be seen whether the new version of Sling TV will continue to be successful. But we should remember that Dish has a strong wireless spectrum, which is a valuable asset for the company going forward.

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