On Wednesday’s OAAA 2024 Media Outlook webinar, Solomon Partners investment banker Mark Boidman and OAAA CEO Anna Bager had a wide ranging discussion on AI, Gen Z, measurement and trends favoring out of home.  OAAA members can watch the webinar here.    Near the end of the webinar, Boidman mentioned that public out of home multiples are down.   Here’s his slide and some of his comments…

“If you look back to 2019 Lamar was around 15 1/2 times…forward multiple…and OUTFRONT is at 13.5 times… all these companies are significantly discounted to where they were in 2019.  It doesn’t make sense to us…the private market has seen has seen some pressure because of where the public multiples have been down but not the same degree…we haven’t seen that much of a drop off… because when people are buying and selling outdoor media assets and outdoor companies they’re very much focused on the long term…”

Billboard Insider’s take:  Why are public out of home multiples down?  We suspect it’s because of slowing revenue growth caused by a drop in national and programmatic advertising.  US out of home revenues have slowed down.

Maybe out of home valuations are starting to correct.  Out of home stocks dashed upwards yesterday possibly in response to Jeremy Male’s bullish comments on the first quarter revenue outlook during OUTFRONT’s earnings call.  OUTFRONT rose 19%, Clear Channel rose 13% and Lamar rose 5% on a day when the S&P 500 increased 5%.

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