Billboard Company Values Q3 2015

Public outdoor valuations declined during the third quarter of 2015, in line with a general drop in the stop market. The three public outdoor companies have an enterprise value of 3.9 times revenue and 12.1 times cashflow (EBIDTA) at September 2015. Clear Channel sells at the lowest multiple due to market concerns over high leverage as well as the fact that it generates a higher proportion of revenue outside the US where real estate property rights aren’t as strong.

Enterprise Value as a Revenue Multiple Mar-15 Jun-15 Sep-15 Change
Clear Channel 2.83 2.83 2.83
Lamar 5.84 5.79 5.27
Outfront 4.65 4.17 3.49
     Average Revenue Multiple 4.44 4.26 3.86 -13%
Enterprise Value as a Cashflow Multiple Mar-15 Jun-15 Jun-15
Clear Channel 11.70 11.68 10.48
Lamar 14.07 13.79 12.57
Outfront 16.94 15.45 13.15
     Average Cashflow Multiple 14.24 13.64 12.07 -15%

Landmark is paying 8-12 cashflow for outdoor easements and leases.

By Dave Westburg

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