Sun TV – I

As with Avanti Feeds, I picked Sun TV from the screen of low debt, high growth companies with low P/E ratio. I also picked it in-part due to my affinity towards Sunrisers Hyderabad who they own.

Numbers and Narratives

Sun TV is a mature company in a growing industry. I expect it to coninue its above-average growth and high margin owing to the industry it operates in.

The core numbers that I arrive at based on the story are

  • Compounded revenue growth for next 5 years = 18% (COVID adjusted, 12% historical industry average)
  • EBIT margin in year 10 = 25% (50% most recent year)
  • Initial cost of capital = 9.76%


I’ve used the above numbers along with the financial information to compute my DCF valuation for Sun TV as seen below.

As you can see, the valuation price came out to ₹518.21, about 8% higher than the last traded price of ₹478.45.



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