Paramount Skydance Corporation Class B Common Stock (PSKY) Fundamental Analysis: Bull vs. Bear Case

PSKY

Paramount Skydance Corporation Class B Common Stock

Fundamental data last updated:August 26, 2026

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company profile

SECTOR

Communication Services

industry

Entertainment

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Paramount Skydance Corporation operates as a media, streaming, and entertainment company worldwide. It operates through TV Media, Direct-to-Consumer, and Filmed Entertainment segments. The TV Media segment operates CBS Television Network, a domestic broadcast television network; CBS Stations, a television station; and international free-to-air networks comprising Network 10, Channel 5, Telefe, and Chilevisión; and domestic premium and basic cable networks, such as Nickelodeon, MTV, CMT, Comedy Central, BET, Paramount+ with SHOWTIME, Paramount Network, The Smithsonian Channel, BET Media Group, CBS Sports Network, and international extensions of these brands. This segment also provides domestic and international television studio operations, including CBS Studios, Paramount Television Studios, and Showtime/MTV Entertainment Studios; CBS Media Ventures, which produces and distributes first run syndicated programming; and digital properties consist of CBS News Streaming and CBS Sports HQ. The Direct-to-Consumer segment offers a portfolio of domestic and international pay and free streaming services, including Paramount+, Pluto TV, and BET+. The Filmed Entertainment segment produces and acquires films, series, and short-form content for release and licensing around the world, including in theaters, on streaming services, on television, through digital home entertainment, and DVDs/Blu-rays; and operates a portfolio consist of Paramount Pictures, Paramount Players, Paramount Animation, Nickelodeon Studio, Awesomeness, and Miramax. It provides production, distribution, and advertising solutions. The company was formerly known as ViacomCBS Inc. and changed its name to Paramount Global in February 2022. The company was founded in 1914 and is headquartered in New York, New York. Paramount Global is a subsidiary of National Amusements, Inc.

VALUATION

P/E

-11.80

Market Cap ($M USD)

$11.69B

Forward P/E

6.21 PEG

0.02 PRICE TO SALES

0.40 PRICE TO BOOK

0.61 EV / EBITDA

-5.53

5-Year Average P/E

Free Cash Flow Yield

2.53%

DCF Value

$-95.55

Graham Number

N/A

Price to FCF

39.50 EV to FCF

86.77 Earnings Yield

-8.48%

FCF Yield

2.53%

DIVIDEND

Yield

1.86%

Annual Payout

$0.20

Payout Ratio

-19.01%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.91

Next Year EPS Growth Estimate

$1.73

Next Year Revenue Growth Estimate

$31.37B

Return on Equity (ROE)

-4.64%

FREE CASH FLOW

Operating Margin

-17.71%

Debt-to-Equity

1.23 Piotroski F-Score

5 Altman Z-Score

0.46 Return on Invested Capital (ROIC)

-15.31%

Current Ratio

1.10 Quick Ratio

1.00 Net Debt to EBITDA

-3.01

Interest Coverage

-5.76

Gross Profit margin

34.77%

FCF PER SHARE

$0.45

REVENUE PER SHARE

$44.23

Gainseekers Quantitative Analysis

Summary

The market seems to be pricing PSKY Paramount Skydance Corporation with a heavy dose of skepticism. Despite a forward P/E of 6.41 suggesting potential undervaluation, the negative DCF value and a troubling Altman Z-score of 0.47 indicate significant financial distress. The earnings yield is in the red, reflecting a lack of profitability, while the negative ROIC underscores inefficient capital use. With a consensus rating of “Sell,” the market appears to be wary of its future prospects, possibly due to its precarious financial health and operational challenges. The stock’s valuation is a puzzle, with the market seemingly mispricing it relative to its intrinsic value.

AI Exposure / Tech Reliance

Operating within the entertainment sector, PSKY is positioned to leverage AI and tech advancements to enhance content creation and distribution. The industry's shift towards digital platforms and AI-driven analytics could offer new revenue streams. However, the company's ability to adapt will depend on its strategic investments and innovation capabilities.

The Bull Case

For the value-driven investor, PSKY's forward PEG ratio of 0.015 is a beacon of potential growth at a bargain price. The FCF yield, while modest, indicates some level of cash generation, and the Piotroski F-Score of 4 suggests moderate financial health. Despite a negative ROIC, the company's gross profit margin of 34.77% hints at underlying pricing power. These factors could attract those seeking deep value plays with room for operational improvement.

The Bear Case

The bear case for PSKY is stark, with a Price/Book ratio barely above 1, indicating limited asset value. The negative operating margin of -17.71% and a dismal interest coverage ratio highlight severe profitability and liquidity challenges. The company's net debt to EBITDA ratio is negative, reflecting a precarious financial structure. Trading significantly below its 52-week high, the stock's technicals suggest a lack of investor confidence, compounded by its negative earnings and cash flow metrics.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Sell

Average Analyst Price Target

$11.67

Institutional Ownership %

1-Year Beta

1.45 Insider Buying % (6 Mo)

Distance to 52-Week High

94.03%

Distance to 52-Week Low

19.82%

EARNINGS SURPRISE %

53.33%

50-DAY SMA

$10.37

200-DAY SMA

$13.32

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.