It has very little to do with that, majority of their revenue is linked to advertising. Advertising is cyclical and we are heading towards the downturn in the cycle.
Housing is also expected to weaken and their domain ownership might be going through a contraction and a rocky road ahead.
Stan & Stan sports is discretionary and will be one of the first things households cut in times of a downturn.
On a FY22 PE of 7 right now it is cheap but the market is forward looking and can see the Earnings part of the multiple decreasing. I think it is overdone but when markets have a fuzzy outlook it can be irrational.
Nine is a clear leader in its broadcast and publishing sector and can use its wide array of consumer data to help its other ventures (Stan and Domain). Not saying they have a perfect business but accumulating during a recession it is highly likely they will be around in 5 years times and valued substantially higher towards the top of the cycle. Please give me insights if you have different views to this
Nine Entertainment Strategic Valuation, page-9
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