(PARA) Paramount Global - Ratings and Ratios

Paramount Global is a media and entertainment powerhouse with a diverse portfolio of assets that span television, streaming, and film. The company operates through three main segments: TV Media, Direct-to-Consumer, and Filmed Entertainment. The TV Media segment includes CBS Television Network, one of the largest broadcast networks in the U.S., as well as a collection of cable networks like MTV, Comedy Central, and Nickelodeon. It also owns international free-to-air networks such as Network 10 in Australia and Telefe in Argentina. This segment is complemented by a robust studio operations division, producing content for both domestic and international markets.

The Direct-to-Consumer segment is anchored by Paramount+, a streaming service that combines original content with a library of classic shows and movies. Paramount+ has seen significant growth, driven by its competitive pricing and exclusive content. The company also operates Pluto TV, a free ad-supported streaming service, as well as niche platforms like BET+ and Noggin. This segment is critical for Paramount’s strategy to compete in the rapidly evolving streaming landscape.

The Filmed Entertainment segment is responsible for producing and distributing content through Paramount Pictures, one of the oldest and most iconic film studios in Hollywood. This segment also includes Paramount Animation and Nickelodeon Studios, which focus on family-friendly content. In addition to theatrical releases, Paramount distributes content through streaming platforms, DVD, and other digital channels. The studio’s library includes a vast collection of films and series, providing a steady stream of licensing revenue.

Paramount Global was formed in 2022 through the rebranding of ViacomCBS, itself the result of a merger between Viacom and CBS in 2019. The company has a long history dating back to 1914 and is headquartered in New York. As a subsidiary of National Amusements, Inc., Paramount has a complex corporate structure that reflects its legacy as one of the oldest media conglomerates in the world. Its market cap of approximately $7.7 billion and forward P/E of 7.35 make it an attractive option for investors looking for exposure to the media and entertainment sector.

Key metrics for investors include a price-to-book ratio of 0.43 and a price-to-sales ratio of 0.27, indicating that the company may be undervalued relative to its assets and revenue. However, the lack of a trailing P/E ratio suggests that Paramount is still in a transitional phase as it navigates the shift to streaming and competes with larger rivals like Netflix and Disney. For fund managers, Paramount’s diversified revenue streams and extensive content library make it a compelling addition to portfolios focused on media and entertainment.