In this pitch deck, analysts Måns Holmgren and Tjard Marx present a comprehensive evaluation of ITV, the UK’s leading content producer and broadcaster with a unique dual engine model and significant upside potential through operational turnaround and strategic M&A. Utilizing a comprehensive valuation approach, incorporating a DCF model, peer analysis, precedent transactions, sum-of-the-parts and an LBO framework, the analysts estimate ITV’s enterprise value to be in the range of GBP 4.4 – 6.0bn.
Key Takeaways
● ITV is deeply undervalued, trading at 6.5x EBITDA despite the Company’s high-quality Studios division which is estimated to alone justify ITV’s entire equity value. This market mispricing creates an attractive SOTP arbitrage opportunity
● A leaner, more profitable Media & Entertainment segment is emerging through aggressive cost-cutting and digital transformation. With over GBP 180m in savings identified and ITVX driving digital ad growth, the broadcast business is estimated to become a high margin cash generator
● The current M&A climate is uniquely favorable, with weak sterling, a depressed valuation, and multiple interested bidders circling ITV and the divisions. This backdrop, combined with high institutional ownership, sets the stage for a smooth transaction and strong private equity returns