Ten Network Holdings Ltd looks the most expensive among 55 stocks in Australia's consumer discretionary sector tracked by at least three analysts, data from Thomson Reuters StarMine shows.
The media company fares badly on the Relative Valuation (RV) model with a score of 10. The lower the score, the more expensive the stock. It also has a Value-Momentum (Val-Mo) score of 1, the lowest in the sector.
The company's net margin and free cash flow (FCF) for 2011 lag industry average by 12.5 percent and 4 percent respectively. Its FCF stayed relatively stable between February 2011 and 2012, increasing by A$1 million to A$72 million in February 2012, while its net income dropped 70 percent to A$15 million during the same period.
While four of the 13 analysts tracking the stock have cut their EPS estimates for 2012 and 2013 by 29.9 percent over the past 30 days, six have cut their estimates by 30.5 percent.
Nine analysts rank it 'sell' or 'strong sell', three have 'hold' rating and one has a 'buy'.
The stock is down 54 percent so far this year, while the broader index is up nearly 8.29 percent for the same period, as of Tuesday's close.
On the other end of the spectrum, APN News & Media is the most attractive on valuations in the sector with an RV score of 100.
Ten Network said on Sept. 20 the Australian Competition and Consumer Commission had cleared the sale of the company's ad sales business Eye Corp Pty Ltd.
StarMine's Relative Valuation model combines six different ratios that measure a company's valuation and then ranks it compared with all other stocks in the same region.
StarMine's Val-Mo model provides a 1-100 percentile ranking of stocks and rates companies based on a combination of value and momentum metrics.
(Reporting By Reshma Apte; Editing by Jijo Jacob)
Keywords: MIDCAP TENNETWORK/