Paramount Skydance Corporation Class B Common Stock

PSKY

Communication ServicesEntertainmentNASDAQ

$10.76

Market Cap: $11.70B

Paramount Skydance Corporation Class B Common Stock (PSKY) Valuation Summary

Updated May 9, 2026 03:08

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.85 – $170.65	$9.63	-10.5%
Revenue DCF 10Y	$4.72 – $143.81	$4.72	-56.1%
▸ Trading Multiples
EV/Revenue	$96.43 – $1,067.58	$142.18	+1221.3%

Valuation History

DCF Analysis

Paramount Skydance Corporation Class B Common Stock (PSKY) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$4.72

Market Price

$10.76

Upside / Downside

-56.1%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -18.0% to a target of 10.4% over 5 years, discounted at a WACC of 6.8%, Paramount Skydance Corporation Class B Common Stock (PSKY) has an intrinsic value of $4.72 per share (range: $4.72 – $143.81).

Key Assumptions

Current Operating Margin

-18.0%

Target Operating Margin

10.4%

WACC

6.8%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.0%

Target CapEx/Rev

6.0%

D&A/Revenue

1.4%

Tax Rate

21.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	29,899	2.4%	-12.3%	-3,691	-3,691	408	(440)	296	-4,019	-3,890
2027	30,398	1.7%	-6.7%	-2,022	-2,022	415	(600)	125	-2,333	-2,115
2028	30,902	1.7%	-1.0%	-297	-297	422	(766)	126	-767	-651
2029	31,371	1.5%	4.7%	1,484	1,172	428	(935)	117	548	436
2030	31,138	-0.7%	10.4%	3,245	2,564	425	(1,085)	-58	1,962	1,463
2031	31,101	-0.1%	10.4%	3,242	2,561	424	(1,240)	-9	1,754	1,225
2032	31,258	0.5%	10.4%	3,258	2,574	427	(1,404)	39	1,557	1,019
2033	31,610	1.1%	10.4%	3,295	2,603	431	(1,579)	88	1,367	838
2034	32,164	1.8%	10.4%	3,352	2,648	439	(1,768)	138	1,181	678
2035	32,929	2.4%	10.4%	3,432	2,711	449	(1,976)	191	994	535

Enterprise Value Bridge

Sum of PV(FCFF)-464

Terminal Value (Gordon Growth at 3.0%)27,330

PV of Terminal Value14,699

Enterprise Value14,235

(–) Net Debt11,101

Equity Value3,134

(÷) Shares Outstanding664

Fair Value per Share$4.72

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.4%	7.4%	10.4%	13.4%	16.4%
4.8%	$-31	$-11	$40	$92	$144
5.8%	$-31	$-17	$16	$49	$81
6.8%	$-30	$-19	$5	$29	$52
7.8%	$-30	$-21	$-2	$17	$35
8.8%	$-30	$-22	$-6	$9	$24

Current price: $10.76. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 25.0% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Paramount Skydance Corporation Class B Common Stock (PSKY) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$9.63

Market Price

$10.76

Upside / Downside

-10.5%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-18.0%

Target Operating Margin

10.4%

WACC

6.8%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.0%

Target CapEx/Rev

6.0%

D&A/Revenue

1.4%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	29,899	2.4%	-12.3%	-3,691	-3,691	408	(591)	296	-4,170	-4,036
2027	30,398	1.7%	-6.7%	-2,022	-2,022	415	(906)	125	-2,639	-2,392
2028	30,902	1.7%	-1.0%	-297	-297	422	(1,232)	126	-1,233	-1,048
2029	31,371	1.5%	4.7%	1,484	1,172	428	(1,567)	117	-83	-66
2030	31,138	-0.7%	10.4%	3,245	2,564	425	(1,868)	-58	1,179	879

Enterprise Value Bridge

Sum of PV(FCFF)-6,663

Terminal Value (Gordon Growth at 3.0%)32,406

PV of Terminal Value24,156

Enterprise Value17,493

(–) Net Debt11,101

Equity Value6,392

(÷) Shares Outstanding664

Fair Value per Share$9.63

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.4%	7.4%	10.4%	13.4%	16.4%
4.8%	$-33	$2	$58	$114	$171
5.8%	$-33	$-11	$25	$60	$96
6.8%	$-33	$-16	$10	$35	$61
7.8%	$-33	$-19	$1	$21	$41
8.8%	$-32	$-21	$-5	$12	$28

Current price: $10.76. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 25.0% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$142.18

Market Price

$10.76

Upside / Downside

+1221.3%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Paramount Skydance Corporation Class B Common Stock (PSKY) has a fair value of $142.18 based on 4 comparable companies in the Entertainment industry.

EV/Revenue Valuation — Entertainment

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Paramount Skydance Corporation Class B Common StockPSKY	7,145	0.6x	0.6x
The New York Times CompanyNYT	12,854	4.5x	4.9x
Sirius XM Holdings Inc.SIRI	9,003	2.2x	2.2x
Liberty Live GroupLLYVK	8,802	24.6x	24.6x
Nexstar Media Group, Inc.NXST	6,150	2.6x	2.6x
Industry Median		3.5x	3.7x
(*) Revenue		29,213	28,884
= Enterprise Value		102,958	108,054
(-) Net Debt		11,101	11,101
Equity Value		91,857	96,953
(/) Outstanding shares		664	664
Fair Price		$138	$146

Selected Fair Value (avg of trailing + forward)

$142.18

+1221.3%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$0.85 – $170.65

$9.63

-10.5%

Revenue DCF 10Y

$4.72 – $143.81

$4.72

-56.1%

▸ Trading Multiples

EV/Revenue

$96.43 – $1,067.58

$142.18

+1221.3%

DCF Analysis

Paramount Skydance Corporation Class B Common Stock (PSKY) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$4.72

Market Price

$10.76

Upside / Downside

-56.1%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-18.0%

Target Operating Margin

10.4%

WACC

6.8%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.0%

Target CapEx/Rev

6.0%

D&A/Revenue

1.4%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	29,899	2.4%	-12.3%	-3,691	-3,691	408	(440)	296	-4,019	-3,890
2027	30,398	1.7%	-6.7%	-2,022	-2,022	415	(600)	125	-2,333	-2,115
2028	30,902	1.7%	-1.0%	-297	-297	422	(766)	126	-767	-651
2029	31,371	1.5%	4.7%	1,484	1,172	428	(935)	117	548	436
2030	31,138	-0.7%	10.4%	3,245	2,564	425	(1,085)	-58	1,962	1,463
2031	31,101	-0.1%	10.4%	3,242	2,561	424	(1,240)	-9	1,754	1,225
2032	31,258	0.5%	10.4%	3,258	2,574	427	(1,404)	39	1,557	1,019
2033	31,610	1.1%	10.4%	3,295	2,603	431	(1,579)	88	1,367	838
2034	32,164	1.8%	10.4%	3,352	2,648	439	(1,768)	138	1,181	678
2035	32,929	2.4%	10.4%	3,432	2,711	449	(1,976)	191	994	535

Enterprise Value Bridge

Sum of PV(FCFF)-464

Terminal Value (Gordon Growth at 3.0%)27,330

PV of Terminal Value14,699

Enterprise Value14,235

(–) Net Debt11,101

Equity Value3,134

(÷) Shares Outstanding664

Fair Value per Share$4.72

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.4%	7.4%	10.4%	13.4%	16.4%
4.8%	$-31	$-11	$40	$92	$144
5.8%	$-31	$-17	$16	$49	$81
6.8%	$-30	$-19	$5	$29	$52
7.8%	$-30	$-21	$-2	$17	$35
8.8%	$-30	$-22	$-6	$9	$24

Current price: $10.76. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 25.0% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$142.18

Market Price

$10.76

Upside / Downside

+1221.3%

Verdict

Undervalued

EV/Revenue Valuation — Entertainment

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Paramount Skydance Corporation Class B Common StockPSKY	7,145	0.6x	0.6x
The New York Times CompanyNYT	12,854	4.5x	4.9x
Sirius XM Holdings Inc.SIRI	9,003	2.2x	2.2x
Liberty Live GroupLLYVK	8,802	24.6x	24.6x
Nexstar Media Group, Inc.NXST	6,150	2.6x	2.6x
Industry Median		3.5x	3.7x
(*) Revenue		29,213	28,884
= Enterprise Value		102,958	108,054
(-) Net Debt		11,101	11,101
Equity Value		91,857	96,953
(/) Outstanding shares		664	664
Fair Price		$138	$146

Selected Fair Value (avg of trailing + forward)

$142.18

+1221.3%