Evaluating TEGNA (TGNA): Has the Recent Share Price Drift Created a Value Opportunity?

TEGNA (TGNA) has been quietly drifting lower over the past 3 months, even as its longer term five year return still sits well ahead of the broader market. That disconnect sets up an interesting value conversation.

See our latest analysis for TEGNA.

At around a 4 percent year to date share price return and a 12 month total shareholder return just under 10 percent, TEGNA’s near term drift contrasts with its strong five year total shareholder return. This suggests momentum has cooled for now even as the longer term case remains intact.

If TEGNA’s steady, media driven story has you thinking more broadly about opportunity, now could be a good time to explore fast growing stocks with high insider ownership.

With shares trading at a modest discount to analyst targets but a hefty gap to some intrinsic value estimates, the key question now is whether TGNA is quietly undervalued or whether the market has already priced in its future growth.

Most Popular Narrative Narrative: 8.2% Undervalued

With TEGNA last closing at $19.58 against a narrative fair value of $21.33, the story leans toward underpricing and sets up a catalyst driven debate.

Analysts are assuming TEGNA's revenue will decrease by 0.1% annually over the next 3 years.

Analysts assume that profit margins will shrink from 14.9% today to 13.3% in 3 years time.

Read the complete narrative.

Curious how a shrinking top line and thinner margins can still support a higher valuation multiple and upside to today’s price? Unpack the full narrative to see which long term earnings path and cash flow profile are doing the heavy lifting behind that fair value.

Result: Fair Value of $21.33 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, TEGNA’s digital expansion and aggressive cost savings could stabilize margins and revenue faster than expected, challenging the mildly pessimistic earnings outlook.

Find out about the key risks to this TEGNA narrative.

Build Your Own TEGNA Narrative

If you see things differently or want to stress test the assumptions yourself, you can build a personalized view in just a few minutes at Do it your way.

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

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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.

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