Grupo Televisa SAB ADR
TV: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$5.00 | Kjqzz | Kvr |
Televisa Continues to Face Competitive Pressure; Fair Value Estimate to $10
Televisa continued to face weakness at Sky and stiff broadband competition during the fourth quarter. We’ve cut our expectations for the core business while also reducing our estimate of the value of TelevisaUnivision, pulling our Televisa fair value estimate down to $10 from $14 per ADR. Competition in the Mexican broadband business remains a concern—especially with Televisa management stating it has abandoned hope for a merger with Megacable—but we believe the stock’s valuation is very undemanding.