Starz Valuation Analysis Highlights Deep Discount Amid Rapid OTT Streaming Growth

Key Facts

1Starz trades at a deep discount with a 4x EV/EBITDA multiple and a 24.5% unlevered FCF yield.

2OTT now represents 72% of Starz's 17.6 million US subscribers, offsetting the decline in linear TV.

3OIBDA is projected to grow from $200M in 2025 to $300M by 2028, supported by in-house content production.

A recent financial analysis highlights Starz (STRZ) as a significantly undervalued asset, currently trading at a low 4x EV/EBITDA multiple with a robust 24.5% unlevered free cash flow yield. The company has successfully navigated its transition to digital media, with over-the-top (OTT) services now accounting for 72% of its 17.6 million US subscribers. This digital expansion is effectively offsetting the structural decline in linear television, signaling a pivotal inflection point for the firm. Projections indicate that OIBDA will grow from $200 million in 2025 to $300 million by 2028, supported by a strategic shift toward in-house content production. This internal production model is expected to bolster profit margins and enhance long-term scalability. Analysts suggest that the current market pricing reflects a deep discount that fails to capture the company's strong cash flow generation and streaming momentum.