Discovery generates more than 50 of its revenue

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March 6, 2018. Discovery generates more than 50% of its revenue outside the U.S. VALUATION Our valuation methodology is multistage, including peer analysis, a multiple-analysis matrix applied to our proprietary forecasts, and discounted cash flow modeling. DISCA shares have traded between $16 and $28 over the past year, and are currently near the midpoint of that range. The shares are up about 1% year-to-date compared to a 4% increase for the S&P 500 and an 8% decline for the S&P 500 Media Index. DISCA is trading at a trailing EV/EBITDA multiple of 42, well above the peer median of 11. DISCA’s forward enterprise value/EBITDA multiple of 8.4 is 8% below the peer average, less than the 10% average discount over the past two years. We are maintaining our HOLD rating on DISCA. On June 7, HOLD-rated DISCA closed at $22.77, up $0.41. (Joseph Bonner, CFA, 6/7/18)
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M ARKET D IGEST - 11 - Argus Research Co. (ARC) is an independent investment research provider whose parent company, Argus Investors’ Counsel, Inc. (AIC), is registered with the U.S. Securities and Exchange Commission. Argus Investors’ Counsel is a subsidiary of The Argus Research Group, Inc. Neither The Argus Research Group nor any affiliate is a member of the FINRA or the SIPC. Argus Research is not a registered broker dealer and does not have investment banking operations. The Argus trademark, service mark and logo are the intellectual property of The Argus Research Group, Inc. The information contained in this research report is produced and copyrighted by Argus Research Co., and any unauthorized use, duplication, redistribution or disclosure is prohibited by law and can result in prosecution. The content of this report may be derived from Argus research reports, notes, or analyses. The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but Argus makes no representation as to their timeliness, accuracy or completeness or for their fitness for any particular purpose. In addition, this content is not prepared subject to Canadian disclosure requirements. This report is not an offer to sell or a solicitation of an offer to buy any security. The information and material presented in this report are for general information only and do not specifically address individual investment objectives, financial situations or the particular needs of any specific person who may receive this report. Investing in any security or investment strategies discussed may not be suitable for you and it is recommended that you consult an independent investment advisor. Nothing in this report constitutes individual investment, legal or tax advice. Argus may issue or may have issued other reports that are inconsistent with or may reach different conclusions than those represented in this report, and all opinions are reflective of judgments made on the original date of publication. Argus is under no obligation to ensure that other reports are brought to the attention of any recipient of this report. Argus
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