Here’s a breakdown of out of home company enterprise valuations which were presented in Solomon Partners December 2024 Media Monthly.

Enterprise Valuations as a Multiple of 2024 Cashflow (EBIDTA)

Billboard Insider’s take:  National CineMedia company is valued at 16.5 times estimated 2024 cashflow (EBIDTA).  National Cinemedia puts ads in movie theaters.  The company is trading at a high cashflow multiple because cashflow is depressed as the company recovers from covid.  Lamar Advertising is valued at 16.1 times estimated 2024 cashflow (EBIDTA).  Lamar is at a high cashflow multiple because it has much less debt than the other out of home companies.  Investors will pay more for a less risky asset.  Billboard Insider think the high multiple also reflects the market’s opinion of Lamar’s management team.  OUTFRONT and Clear Channel trade at 12.5 times and 11 times estimated 2024 cashflow (EBITDA).  JCDecaux is valued at a low 5.6 times 2024 cashflow (EBITDA) because it has low margins, a far-flung international network and short term transit and street furniture contracts.  Hard to trade at a 16 times cashflow multiple when your portfolio is full of low-margin, short-term, municipal contracts.

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