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Paramount Global is a company that I have been planning to do a write-up on every since I first wrote my piece on Warner Brothers Discovery. Several people told me that they consider the stock to be the better buy in the streaming markets. The stock has definitely gotten itself a strong base of supporters, and in this article, I will be looking at the stock to see if it is one that I should purchase.
Paramount Global trades at a $10.77 billion dollar valuation. They are a media and entertainment company formed by the merger of Viacom and CBS. They own CBS, BET, Comedy Central, MTV, Paramount Pictures, Paramount Plus, Pluto TV, Showtime Network, Smithsonian Channel, and Nickelodeon. This exposes them to traditional distributions as well as streaming services. The stock is down 45.83% year to date and is down 71.46% over the last 5 years.
Warren Buffett’s Berkshire Hathaway is the largest shareholder of the company with 78,421,645 shares, which is currently worth $1,279,668,759.
The company is in a lot of debt. As of August 4, 2022, they had a total debt of $15.81 billion dollars. $15.77 billion of that is long-term debt (more than one year from becoming due) while $37 million of that is current debt (due within one year). Last quarter, Paramount Global had a debt/equity ratio of .68.
One of the big opportunities with Paramount Global is streaming. Paramount Global reported last quarter that they have 67 million people subscribed to their streaming services, with 46 million of that being subscribers to Paramount Plus. They reported earnings from streaming at $863 million last quarter, which is a large increase.
The company currently has a price-to earnings ratio of 3.71. They also offer a really nice dividend yield of 6.17% which is a nice incentive to hold shares.
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