Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Paramount Global, formerly ViacomCBS Inc., is a global media and entertainment company that creates content for audiences worldwide. The Company's TV Media segment consists of its domestic and international broadcast networks, including the CBS Television Network, Network 10, Channel 5, premium and basic cable networks, including Showtime, BET, Nickelodeon, MTV, Comedy Central, Paramount Network, Smithsonian Channel, international extensions of these brands and television production operations, including CBS Studios, Paramount Television Studios, and CBS Media Ventures.     

1.2 The Key Positives, Negatives, and Investment summary

1.3 Key Metrics:

The graph below demonstrates that PARA's revenues and gross profits have increased over the previous five years with a 5 –year CAGR of 16.77% for revenue and 15.79% for Gross profits depicting increased demand for products and controlled cost of revenue. Additionally, quarterly improvements and operational efficiency helped the company to have a lower balance sheet risk.

1.4 Top 10 shareholders:

The top 10 shareholders together form ~47.55% of the total shareholding, signifying diverse shareholding. Berkshire Hathaway Inc. and The Vanguard Group, Inc. are the biggest shareholders, holding the maximum stake in the company at ~12.89% and ~10.40%, respectively.

1.5 Consistent dividend History

PARA has been paying dividends since 2003 and has a track record of consistent dividend payments with a current dividend yield of 5.86% higher than the US treasury yield. PARA recently declared a quarterly cash dividend of USD 0.24 per share on both its Class A and Class B Common Stock. The dividend will be payable on January 3, 2023, to stockholders of record at the close of business on December 15, 2022.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

 2.2 Insights of Q3FY22:

Section 3: Key Risks

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings per share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 08, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.