The four public outdoor companies were valued at 3.7 times gross revenue and 13.1 times cashflow at March 31, 2016 according the the Yahoo Finance pages for Clear Channel, Outfront, Lamar and JCDecaux.
Lamar leads the group at a valuation of 5.8 times revenue and 13.9 times cashflow. Insider attributes this to the fact that Lamar has the highest margins of the group and is the least reliant on short-term transit and airport advertising contracts.
Clear Channel Outdoor has the lowest valuation at 2.3 times revenue or 9.5 times cashflow. The market is concerned about Clear Channel Outdoor’s weak revenue performance, low margins and high debt.
Public Outdoor Advertising Company Valuations March 31, 2016
Revenues and Cashflow are computed for trailing 12 months ended December 31, 2015.
Insider has seen recent private, non-distressed outdoor transactions recently in the 8-10 times cashflow range.