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A Look At Paramount Skydance (PSKY) Valuation After Recent Share Price Weakness

Simply Wall St · 3d ago

Recent share performance and what it might signal

Paramount Skydance (PSKY) has drawn fresh attention after recent trading, with the stock closing at US$12.50 and showing negative returns over the past week, month, past 3 months, and year to date.

See our latest analysis for Paramount Skydance.

That recent 3 month share price return of 30.44% and 30 day share price return of 14.21% decline come after a 1 year total shareholder return of 18.75%, so short term momentum looks weaker than the longer term picture.

If Paramount Skydance’s swings have sharpened your focus on media exposure, this could be a useful moment to scan fast growing stocks with high insider ownership as a wider set of ideas.

With Paramount Skydance trading at US$12.50, showing mixed returns across different time frames and sitting at a discount to some valuation estimates, you have to ask: is there mispricing here, or is the market already banking on future growth?

Price-to-sales of 0.5x: Is it justified?

At a last close of US$12.50, Paramount Skydance is trading on a P/S of 0.5x, which screens as inexpensive next to both peers and the wider US media group.

The P/S ratio compares the company’s market value to its revenue, so it is a simple way to see how much investors are paying for each dollar of sales. For a media and entertainment group with sizeable studios, TV and streaming operations, this lens is often useful when earnings are volatile or currently negative.

Here, the market price implies a P/S of 0.5x while our work suggests a fair P/S of 1.4x. The US Media industry average sits at 0.9x with peers around 1.2x. That is a wide gap, and if sentiment shifted toward those comparative levels or the estimated fair ratio, the valuation could move a long way from where it is today.

Explore the SWS fair ratio for Paramount Skydance

Result: Price-to-sales of 0.5x (UNDERVALUED)

However, you still have to weigh the recent 30.44% three-month share price decline and the current net loss of US$272m as potential pressure points on this valuation story.

Find out about the key risks to this Paramount Skydance narrative.

Another view on value: what the DCF model says

While the P/S of 0.5x suggests Paramount Skydance is inexpensive relative to peers, our DCF model offers a different perspective. It points to a fair value of about US$26.25 per share, which is roughly 52% above the current US$12.50 price and highlights a deeper potential mispricing. So which signal do you put more weight on?

Look into how the SWS DCF model arrives at its fair value.

PSKY Discounted Cash Flow as at Jan 2026
PSKY Discounted Cash Flow as at Jan 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Paramount Skydance for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 878 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Paramount Skydance Narrative

If you see the numbers differently or prefer to test your own assumptions, you can build a custom view in just a few minutes. Do it your way

A great starting point for your Paramount Skydance research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Paramount Skydance has caught your eye, do not stop there. Broaden your watchlist with a few focused sets of companies that could sharpen your next move.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.