How much is a TV station worth?

What’s a television station worth in today’s market? The short answer, according to someone who tracks valuations is, at the end of last year, it was about eight times the station’s 12 months’ trailing EBITDA (earnings before interest, taxes, depreciation and amortization). Most people would call this eight times cash flow. This is lower than in years past. It’s also based on a historically small number of transactions.

There are certainly other ways to calculate a station’s value and many questions that should be asked before coming to a conclusion. The thing is, it doesn’t matter how you get the number if there isn’t a buyer willing to pay the price.

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