How is it that you and Dan both look at the same data re this sector but come up with ompletely opposing views?
Dan feels these broadcasting stocks are way overvalued (by as much as 2xs) while you see them as being way undervalued. Both of you obviously understand corporate financials, this sector, etc., so how is it possible for the two of you to have such different opinions on this sector?
I don't know what metrics Dan is looking at or using. I think the most important metric is free cash flow per share. If you slap a 10x multiple on that, and use a 2 year average, I think you get an appropriate and conservative valuation. I think from their you can make adjustments based on other information, underfunded pension, corporate structure, leverage, etc. But I use that as my base calculation, and the majority of the CEO's in the space (at least the good ones) would agree with me.
I can't speak for Dan, my guess is he uses more "traditional" methods such as PE multiples which I believe are misleading, but that's another day for a different disucssion.