Starz Entertainment Corp.

STRZ

Communication ServicesEntertainmentNASDAQ

$20.10

Market Cap: $337.47M

Starz Entertainment Corp. (STRZ) Valuation Summary

Updated May 10, 2026 07:21

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	—	N/A	—
Revenue DCF 10Y	$0.28 – $27.75	$8.78	-56.3%
▸ Trading Multiples
EV/Revenue	$25.39 – $218.74	$74.97	+273.0%

Valuation History

DCF Analysis

Starz Entertainment Corp. (STRZ) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$8.78

Market Price

$20.10

Upside / Downside

-56.3%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -33.8% to a target of 10.4% over 5 years, discounted at a WACC of 10.5%, Starz Entertainment Corp. (STRZ) has an intrinsic value of $8.78 per share (range: $0.28 – $27.75).

Key Assumptions

Current Operating Margin

-33.8%

Target Operating Margin

10.4%

WACC

10.5%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.1%

Target CapEx/Rev

57.5%

D&A/Revenue

38.3%

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)
2027	1,271	1.1%	-24.9%	-317	-317	487	(97)	-47	120	114
2028	1,283	1.0%	-16.1%	-207	-207	492	(169)	-0	116	100
2029	1,299	1.3%	-7.3%	-94	-94	498	(243)	-0	161	125
2030	1,285	-1.1%	1.6%	20	16	493	(312)	0	197	138
2031	1,292	0.5%	10.4%	135	106	495	(385)	-0	217	138
2032	1,162	-10.0%	10.4%	121	96	445	(411)	3	127	73
2033	1,046	-10.0%	10.4%	109	86	401	(428)	3	56	29
2034	942	-10.0%	10.4%	98	78	361	(437)	3	-1	-1
2035	888	-5.7%	10.4%	93	73	340	(461)	1	-49	-21
2036	876	-1.4%	10.4%	91	72	336	(503)	0	-96	-37

Enterprise Value Bridge

Sum of PV(FCFF)660

Terminal Value (Gordon Growth at 3.0%)0

PV of Terminal Value0

Enterprise Value660

(–) Net Debt512

Equity Value147

(÷) Shares Outstanding17

Fair Value per Share$8.78

Note:Terminal value is $0 because Year 5 FCFF is negative. The company's operating margin convergence does not fully offset reinvestment needs within 5 years. See the sensitivity matrix for scenarios where the model produces a positive terminal value (higher target margin or lower WACC).

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.4%	7.4%	10.4%	13.4%	16.4%
8.5%	$-7	$2	$11	$19	$28
9.5%	$-7	$1	$10	$18	$26
10.5%	$-7	$1	$9	$17	$24
11.5%	$-8	$0	$8	$15	$23
12.5%	$-8	$-0	$7	$14	$21

Current price: $20.10. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at -2.6% 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

$74.97

Market Price

$20.10

Upside / Downside

+273.0%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Starz Entertainment Corp. (STRZ) has a fair value of $74.97 based on 7 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
Starz Entertainment Corp.STRZ	338	0.7x	0.7x
Entravision Communications CorporationEVC	659	1.8x	1.1x
The E.W. Scripps CompanySSP	552	1.5x	1.3x
ATN International, Inc.ATNI	408	1.4x	1.3x
AMC Networks Inc.AMCX	376	0.7x	0.8x
Crexendo, Inc.CXDO	303	4.0x	4.0x
RADCOM Ltd.RDCM	265	3.3x	4.7x
Gaia, Inc.GAIA	64	0.6x	0.7x
Industry Median		1.5x	1.3x
(*) Revenue		1,258	1,271
= Enterprise Value		1,903	1,640
(-) Net Debt		512	512
Equity Value		1,391	1,128
(/) Outstanding shares		17	17
Fair Price		$83	$67

Selected Fair Value (avg of trailing + forward)

$74.97

+273.0%

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

—

N/A

—

Revenue DCF 10Y

$0.28 – $27.75

$8.78

-56.3%

▸ Trading Multiples

EV/Revenue

$25.39 – $218.74

$74.97

+273.0%

DCF Analysis

Starz Entertainment Corp. (STRZ) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$8.78

Market Price

$20.10

Upside / Downside

-56.3%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-33.8%

Target Operating Margin

10.4%

WACC

10.5%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.1%

Target CapEx/Rev

57.5%

D&A/Revenue

38.3%

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)
2027	1,271	1.1%	-24.9%	-317	-317	487	(97)	-47	120	114
2028	1,283	1.0%	-16.1%	-207	-207	492	(169)	-0	116	100
2029	1,299	1.3%	-7.3%	-94	-94	498	(243)	-0	161	125
2030	1,285	-1.1%	1.6%	20	16	493	(312)	0	197	138
2031	1,292	0.5%	10.4%	135	106	495	(385)	-0	217	138
2032	1,162	-10.0%	10.4%	121	96	445	(411)	3	127	73
2033	1,046	-10.0%	10.4%	109	86	401	(428)	3	56	29
2034	942	-10.0%	10.4%	98	78	361	(437)	3	-1	-1
2035	888	-5.7%	10.4%	93	73	340	(461)	1	-49	-21
2036	876	-1.4%	10.4%	91	72	336	(503)	0	-96	-37

Enterprise Value Bridge

Sum of PV(FCFF)660

Terminal Value (Gordon Growth at 3.0%)0

PV of Terminal Value0

Enterprise Value660

(–) Net Debt512

Equity Value147

(÷) Shares Outstanding17

Fair Value per Share$8.78

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.4%	7.4%	10.4%	13.4%	16.4%
8.5%	$-7	$2	$11	$19	$28
9.5%	$-7	$1	$10	$18	$26
10.5%	$-7	$1	$9	$17	$24
11.5%	$-8	$0	$8	$15	$23
12.5%	$-8	$-0	$7	$14	$21

Current price: $20.10. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at -2.6% 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

$74.97

Market Price

$20.10

Upside / Downside

+273.0%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Starz Entertainment Corp. (STRZ) has a fair value of $74.97 based on 7 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
Starz Entertainment Corp.STRZ	338	0.7x	0.7x
Entravision Communications CorporationEVC	659	1.8x	1.1x
The E.W. Scripps CompanySSP	552	1.5x	1.3x
ATN International, Inc.ATNI	408	1.4x	1.3x
AMC Networks Inc.AMCX	376	0.7x	0.8x
Crexendo, Inc.CXDO	303	4.0x	4.0x
RADCOM Ltd.RDCM	265	3.3x	4.7x
Gaia, Inc.GAIA	64	0.6x	0.7x
Industry Median		1.5x	1.3x
(*) Revenue		1,258	1,271
= Enterprise Value		1,903	1,640
(-) Net Debt		512	512
Equity Value		1,391	1,128
(/) Outstanding shares		17	17
Fair Price		$83	$67

Selected Fair Value (avg of trailing + forward)

$74.97

+273.0%