Paramount Global Class B (PARA) AI Stock Analysis

• Market Cap: $8.17B
• Dividend Yield: 1.9%
• Average Volume (3M): 13.81M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: -1.75%
• EPS Growth: 99.73%
• Country: US
• Employees: 18,600
• Sector: Communication Services
• Sector Strength: 90
• Industry: Entertainment
• EPS (TTM): 0.46
• Shares Outstanding: 1,064,653,400
• 10 Day Avg. Volume: 27,034,155
• 30 Day Avg. Volume: 13,808,048
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 14.20
• Enterprise Value/Market Cap: 2.69
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 2.40
• Enterprise Value/Ebitda: 12.63
• 1Y Price Target: $11.92
• Price Target Upside: 13.42% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 16

• Rating: 60 Neutral
• Price Target: $11.00 ▲(4.66% Upside)

Paramount Global Class B's overall stock score reflects a balance of strengths and weaknesses. The most significant factor is the mixed financial performance, with improvements in cash flow but challenges in revenue growth and profitability. Technical indicators show bearish momentum, while valuation metrics highlight profitability concerns. The earnings call and corporate events provide some positive outlooks, particularly in streaming growth and financial flexibility.

Positive Factors

Direct-to-Consumer Performance

DTC reported 15% year-over-year revenue growth to $2.2B, which was 6% above the estimate.

Merger and Acquisition

The merger with Skydance will allow shareholders an opportunity to realize some immediate value for a portion of their holdings, with Skydance identifying about $2 billion of cost synergies to improve profitability.

Stock Evaluation

Paramount Global has been given a 'Buy' rating by the analyst, and the price target is set at a higher value than its current market price.

Negative Factors

Advertising Revenue

Ad revenues fell 4% year-over-year to $494mm, with total DTC ad revenues also declining roughly 4%.

Leadership Instability

Two of the three co-CEOs are expected to leave the company shortly after the Skydance merger closes, indicating potential leadership instability.

Operating Income

Operating Income of $399mm was 37% below the estimate.

Paramount Global Class B Business Overview & Revenue Model

Company Description

Paramount Global Class B (PARA) is a leading global media and entertainment company that operates in various sectors including television, streaming, film, and digital content. The company owns and operates a diverse portfolio of entertainment brands such as CBS, MTV, Showtime, Nickelodeon, and Paramount Pictures. Paramount Global engages in producing and distributing content across different platforms, catering to a wide range of audiences worldwide.

How the Company Makes Money

Paramount Global makes money through multiple revenue streams including advertising, subscription fees, content licensing, and theatrical distribution. Advertising revenue is generated from commercials aired on its television networks and digital platforms. Subscription fees come from its streaming services like Paramount+ and Showtime. Content licensing involves selling the rights to its TV shows and films to other networks and streaming services. Theatrical distribution involves box office sales from films produced by Paramount Pictures. Additionally, the company benefits from partnerships and collaborations with other media companies, enhancing its distribution capabilities and expanding its audience reach.

Paramount Global Class B Financial Statement Overview

Summary

Paramount Global Class B demonstrates a mixed financial performance. While improvements in operating efficiency and cash flow management are evident, challenges persist in sustaining revenue growth and profitability. The company's substantial debt level is a concern, although it is balanced by a reasonable equity ratio.

Income Statement

Paramount Global Class B has shown a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 31.77%, which is moderately strong, indicating effective cost management. However, the net profit margin is quite low at 0.55%, reflecting challenges in converting revenue into net income, which might be due to high operating expenses or other non-operational costs. Revenue growth has been inconsistent, with a slight decline from 2022 to 2023 and a further drop in 2024, indicating potential revenue challenges. The EBIT margin has improved to 4.92% in the TTM from negative figures in the previous year, showing signs of operational improvement.

Balance Sheet

The company exhibits a moderate financial structure with a debt-to-equity ratio of 0.91, suggesting a balanced use of debt and equity financing. The return on equity in the TTM is low at 0.94%, indicating limited returns for shareholders. The equity ratio stands at 37.19%, which is reasonable and suggests a decent level of asset backing by equity. However, the overall stability is hindered by a substantial total debt level, which could pose risks in periods of financial strain.

Cash Flow

Paramount Global Class B shows strong cash flow management with a positive free cash flow trend. The free cash flow to net income ratio is robust at 3.23 in the TTM, indicating effective conversion of income into cash. The operating cash flow to net income ratio is 4.92, further highlighting strong cash generation capabilities. Free cash flow has grown slightly, demonstrating resilience in cash management despite fluctuating net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.76B	29.21B	29.65B	30.15B	28.59B	25.29B
Gross Profit	9.14B	8.66B	7.26B	10.31B	10.84B	10.29B
EBITDA	1.74B	-4.92B	85.00M	2.60B	4.39B	15.62B
Net Income	-14.00M	-6.19B	-608.00M	1.10B	4.54B	2.42B
Balance Sheet
Total Assets	44.93B	46.17B	53.54B	58.39B	58.62B	52.66B
Cash, Cash Equivalents and Short-Term Investments	2.74B	2.66B	2.46B	2.88B	6.27B	2.98B
Total Debt	15.51B	15.55B	15.86B	17.27B	19.31B	21.32B
Total Liabilities	27.82B	29.39B	30.49B	34.79B	35.65B	36.61B
Stockholders Equity	16.70B	16.32B	22.53B	23.04B	22.40B	15.37B
Cash Flow
Free Cash Flow	507.00M	489.00M	147.00M	-139.00M	599.00M	1.97B
Operating Cash Flow	772.00M	752.00M	475.00M	219.00M	953.00M	2.29B
Investing Cash Flow	122.00M	12.00M	942.00M	-526.00M	2.40B	56.00M
Financing Cash Flow	-528.00M	-507.00M	-1.84B	-2.98B	-152.00M	-90.00M

Paramount Global Class B Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PARA, the sentiment is Positive. The current price of 10.51 is below the 20-day moving average (MA) of 12.51, below the 50-day MA of 12.43, and below the 200-day MA of 11.42, indicating a bullish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 65.43 is Neutral, neither overbought nor oversold. The STOCH value of 33.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PARA.

Paramount Global Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXA	81 Outperform	$23.83B	11.43	19.96%	0.91%	16.60%	57.39%
DIS	78 Outperform	$204.46B	17.83	11.01%	0.86%	5.00%	144.65%
NFLX	75 Outperform	$520.65B	52.21	43.55%	―	14.28%	46.86%
WMG	71 Outperform	$16.45B	55.82	54.66%	2.24%	1.36%	-45.79%
WBD	64 Neutral	$27.78B	39.90	2.18%	―	-3.79%	―
PARA	60 Neutral	$8.17B	―	-0.11%	1.90%	-1.75%	99.73%
Sector *	60 Neutral	$43.99B	4.24	-10.43%	4.00%	2.31%	-34.39%

Paramount Global Class B Corporate Events

Paramount Global Restructures Debt and Delists from Nasdaq

On August 7, 2025, Paramount Global entered into several significant agreements, including supplemental indentures and a borrower joinder agreement, to restructure its debt and credit arrangements, involving entities like The Bank of New York Mellon and Deutsche Bank Trust Company Americas. Additionally, Paramount underwent a series of mergers and governance changes, resulting in the cancellation of its existing shares and the issuance of new shares under Paramount Skydance Corporation, leading to its delisting from Nasdaq and a complete overhaul of its board and executive team.

The most recent analyst rating on (PARA) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Paramount Global stock, see the PARA Stock Forecast page.

Paramount Global Announces Skydance Transaction Details

On July 25, 2025, Paramount Global announced that its transaction with Skydance is expected to close on August 7, 2025, subject to customary conditions. The announcement also detailed election deadlines for Paramount stockholders regarding their shares in connection with the transaction. Additionally, a blackout period will occur due to the transaction, affecting the trading of Paramount’s Class A and Class B stocks, as well as the Paramount Skydance Stock. This period will restrict certain activities for directors and executive officers, impacting their ability to manage investments in the company’s equity securities during the transition.

The most recent analyst rating on (PARA) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Paramount Global Class B stock, see the PARA Stock Forecast page.

Paramount Global Approves Director Nominations and Plan Amendments

At the 2025 Annual Meeting of Stockholders, Paramount Global announced that all directors nominated were approved, along with amendments to the Long-Term Incentive Plan and the 2015 Equity Plan for Outside Directors. However, a stockholder proposal regarding the inclusion of ‘viewpoint’ and ‘ideology’ in the company’s equal employment opportunity policy was not approved. These decisions reflect Paramount’s strategic direction in governance and compensation, while the rejection of the proposal indicates a potential area of concern for some stakeholders.

The most recent analyst rating on (PARA) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Paramount Global Class B stock, see the PARA Stock Forecast page.

Paramount Global Announces CFO Naveen Chopra’s Resignation

On June 3, 2025, Paramount Global announced the resignation of Naveen Chopra, its Executive Vice President and Chief Financial Officer, effective June 27, 2025. His departure was not due to any disagreements with the company or its board. Andrew C. Warren, the current Strategic Advisor to the Office of the CEO, will take on the role of Interim Chief Financial Officer following Chopra’s resignation. Warren brings extensive experience from his previous roles as CFO at STX Entertainment, Discovery Communications, and other major media companies.

The most recent analyst rating on (PARA) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Paramount Global Class B stock, see the PARA Stock Forecast page.

Paramount Global Amends Credit Agreement for Flexibility

On May 12, 2025, Paramount Global amended its credit agreement to increase the cap on unrestricted cash that can be netted against Consolidated Indebtedness from $1.5 billion to $3.0 billion. Additionally, the amendment allows for an expanded definition of Consolidated EBITDA, including a new add-back for cash items related to restructuring, litigation, and business optimization, capped at 15% of Consolidated EBITDA. These changes are expected to enhance Paramount’s financial flexibility and potentially improve its leverage ratio, impacting its operational and strategic positioning.

The most recent analyst rating on (PARA) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Paramount Global Class B stock, see the PARA Stock Forecast page.