Unveiling Atlanta Braves Holdings (BATRA)'s Value: Is It Really Priced Right? A Comprehensive Guide
Atlanta Braves Holdings Inc (NASDAQ:BATRA) recently recorded a daily gain of 2.74%, despite a 3-month loss of 0.34%. With a Loss Per Share of 3.39, the question arises - is the stock fairly valued? In this comprehensive guide, we will delve into the financial analysis of Atlanta Braves Holdings (NASDAQ:BATRA) and assess its intrinsic value.
Company Introduction
Atlanta Braves Holdings Inc operates through its wholly-owned subsidiary, the owner and operator of the Atlanta Braves Major League Baseball Club, The Battery Atlanta, and Truist Park. With a stock price of $40.52, the company boasts a market cap of $2.40 billion. The question is, does this align with the company's fair value as estimated by the GF Value?
Understanding GF Value
The GF Value is a proprietary measure that estimates a stock's intrinsic value. It is calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates. If the stock price is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. Conversely, if it is significantly below the GF Value Line, its future return will likely be higher.
Atlanta Braves Holdings (NASDAQ:BATRA) appears to be fairly valued according to the GF Value Line. With a market cap of $2.40 billion and a current price of $40.52 per share, the stock's long-term return is likely to be close to the rate of its business growth.
Financial Strength
Investing in companies with poor financial strength carries a higher risk of permanent loss of capital. Therefore, it is crucial to review a company's financial strength before deciding to buy its stock. Atlanta Braves Holdings has a cash-to-debt ratio of 0.2, ranking worse than 76.86% of 994 companies in the Media - Diversified industry. This indicates that the financial strength of Atlanta Braves Holdings is poor.
Profitability and Growth
Investing in profitable companies carries less risk. Atlanta Braves Holdings has been profitable 1 year over the past 10 years. Its operating margin of -46.08% ranks worse than 88.2% of 1025 companies in the Media - Diversified industry. However, the 3-year average annual revenue growth of Atlanta Braves Holdings is 12.4%, ranking better than 80.4% of 944 companies in the same industry.
ROIC vs WACC
Another way to assess a company's profitability is to compare its return on invested capital (ROIC) and the weighted average cost of capital (WACC). For the past 12 months, Atlanta Braves Holdings's ROIC is -19.41, and its WACC is 8.93.
Conclusion
In summary, Atlanta Braves Holdings (NASDAQ:BATRA) appears to be fairly valued. Despite its poor financial condition and profitability, its growth ranks better than 98.95% of 761 companies in the Media - Diversified industry. To learn more about Atlanta Braves Holdings stock, you can check out its 30-Year Financials here.
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This article first appeared on GuruFocus.
