Six pure-play publicly owned broadcasters were valued by investment bank M.C. Alcamo & Co. at an average multiple of 10.7 X EBITDA at the end of 2009, a sign that the business is bouncing back, B&C reports.
The numbers indicate “significant confidence among investors–confidence in continued stock price appreciation and an anticipation of rising profitability throughout 2010-11," M.C. Alcamo President Michael Alcamo said. "Investors are willing to pay nearly eleven times EBITDA for companies that are well-positioned to benefit from advertising growth in the recovery."