Pandora stock prices Forecast july 2011

Pandora stock prices Forecast july 2011 ; pandora stock prediction july 2011 ; Pandora Media's turbulent stock market ride continues this week as shares of the newly public company have risen over 50% primarily on speculation the company could be an acquisition target by DISH Network.

With its shares trading at $20.44 in Friday july 1 20111 morning trading, Pandora has a market value of $3.26 billion. (By the way, Pandora shares have come full circle. Its offering price was $16 and it started trading at $20. It soon dropped below $13 but has rallied.) That puts it well ahead of the current market values of other music companies such as Live Nation ($2.1 billion) and Warner Music Group ($1.28 billion). Both have capital structures different than that of Pandora, however, which means their enterprise values (basically the cost another company would pay to acquire them) are higher than that of Pandora.

Pandora's $3.26 billion market value puts it far ahead of some publicly traded radio broadcasting companies. The market values of Emmis and Radio One are just $42 million and $93 million, respectively. Both had net losses in their last 12-month earnings period. Entercom has a market value of $336 million, 12-month revenue of $391 million and new profit of $46 million. Pandora posted a $2 million loss on revenue of $138 million in its last 12 months.

Investors are valuing the company based on expectations of future performance that far outstrips its financial performance to date. That's why its market value is 22.6x its recent 12-month revenue. Larger, more mature broadcast companies are trading around 3x their recent 12-month revenue. Sirius XM, which Pandora will battle for share of auto-related listening, has a market cap of $8.72 billion but is worth just 3.1x its $2.8 billion revenue. At $29.92 billion, Viacom's market value is 3.2x revenue. Discovery's $11.55 market value is 3.1x revenue.

Even though Pandora has more in common with broadcasters and online media companies (they offer products and services that generate advertising revenue, they compete for a share of consumers' attention on the same devices), it is currently valued more like another hot Internet IPO. LinkedIn, which went public in May, has a market value of $8.81 billion that is 36x
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