Outdoor Valuations Increase in 1Q 2017

Outdoor advertising valuations increased during the first quarter of 2017 as you can see from the following chart.

  • The revenue multiple for the four public out of home companies increased from 3.6 times at December 2016 to 3.8 times at March 2017.
  • The cashflow multiple for the four public companies increased form 12.9 times at December 2016 to 13.4 times at March 2017.
  • Lamar trades at a group high 6.4 times revenue and 15.3 times cashflow.  Insider attributes this to the fact that Lamar has higher margins and is less dependent on expensive short term transit contracts than the other out of home companies.
  • Private values are 8-10 times cashflow or 4-6 times revenue.  Fire sales and distressed sales may be less.  A strategic tuck-in acquisition with terrific locations may be more.

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