How Sensitive Is CBS Stock Price To Cable Network’s Revenues?

The Cable Network’s Segment of CBS Corp (NASDAQ: CBS) accounts for 30% of the valuation of the company. It is comprised of a diverse portfolio of networks, including the CBS Sports Network and Showtime. Cable networks derive their revenue from subscription payments and licensing fees. We believe that Cable Network’s revenues will grow at an annual rate of 6% over the near future.  This number can change depending on new developments and forecasting error. It has varied between 3% to 19% since 2007. As per our current estimates, the sensitivity of CBS stock price to 1% change in Cable Network’s revenue is 2%.

Have more questions about CBS? See the links below

• How Much Revenues Can CBS’ Streaming Services Add In Next 5 Years?
• By What Percentage Did CBS’ Revenue & EBITDA Grow In The Last 5 Years?
• By How Much Will CBS’ Revenue And EBITDA Grow Over The Next 3 Years?
• How Has CBS’ Revenue And EBITDA Composition Changed Over The Last 5 Years?
• What’s CBS’ Fundamental Value Based On Expected 2015 Results?
• Advertising vs Non-Advertising: What’s CBS Corp’s Revenue and EBITDA Breakdown?
• Why Is It Important For CBS To Grow Its Non-Advertising Income?

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for CBS Corp

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