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NZME Limited (NZM) Fair Value & Analysis

Communication Services · AU · Market cap A$169M

NL NZME Limited NZM · AU
PriceA$0.8800
Fair ValueA$1.16
Upside+31.8%
Quality67/100
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Weak Growth
Thin margins · 3.8% net margin
Low debt · generates free cash flow
10.23% dividend yield
Ranks above peers (11/14)
Moderate moat 48/100
Evidence: High Range A$0.7300 – A$1.58 Share as image

Fair value as of: Aug 14, 2026

From 22 valuation models · updated yesterday

Share price −0.6% over the past month.

A solid business, screening 32% undervalued on our models.

What matters now

  • Solid quality (67/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (A$0.7300 to A$1.58) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

A$1.14 A$0.4232 Fair Value A$1.16 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 14, 2026.

How to read this chart

60‑month range A$0.4232 – A$1.14 · fair‑value band A$0.7300 – A$1.58 · the A$0.8800 price screens below the A$1.16 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 14, 2026.

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Analysis

NZME Limited (NZM) currently trades at A$0.8800, while our model-based Fair Value estimate is A$1.16, implying the stock looks roughly 31.8% undervalued today. The Quality Score stands at 67/100 (solid quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, NZME Limited generated revenue of A$341M at a net margin of 3.8%. Revenue grew 0.1% year over year. It earns a return on equity of 13.2%. Net debt stands at A$144M. Fundamentals as of Aug 14, 2026

Our scenario range runs from A$0.7300 (bear case) to A$1.58 (bull case); at A$0.8800, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 14% below its 52-week high and 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at -43% fair-value upside, at 32%, NZM screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF A$1.75 A$2.18 A$2.83 80
Residual Income A$0.4500 A$0.5100 A$0.7800 76
Rev-Margin DCF A$1.41 A$1.98 A$2.69 74
All 22 models by family
DCF Models
FCF DCF A$1.70 A$2.17 A$2.91 38
Owner Earnings A$1.46 A$1.86 A$2.51 31
5Y Revenue Exit A$1.41 A$1.93 A$2.68 39
5Y EBITDA Exit A$2.02 A$2.99 A$4.28 41
5Y P/E Exit A$1.28 A$1.71 A$2.24 38
10Y Revenue Exit A$1.51 A$1.87 A$2.24 36
10Y EBITDA Exit A$1.86 A$2.43 A$3.04 37
10Y P/E Exit A$1.47 A$1.76 A$2.01 35
Earnings-Based
Graham-Dodd A$0.4700 A$0.5800 A$0.6500 54
EPV A$0.7500 A$0.8500 A$0.9300 59
Multiples
P/E Multiple A$1.15 A$1.53 A$1.91 63
P/S Multiple A$0.8900 A$1.18 A$1.48 58
P/B Multiple A$0.8900 A$1.18 A$1.48 55
EV/EBIT A$1.67 A$2.25 A$2.83 53
EV/EBITDA A$2.71 A$3.64 A$4.57 54
EV/Revenue A$1.24 A$1.81 A$2.38 43
Asset-Based
NCAV (Graham) A$0.2600 A$0.3500 A$0.5200 50
Growth DCF
Growth DCF A$1.75 A$2.18 A$2.83 80
Rev-Margin DCF A$1.41 A$1.98 A$2.69 74
Economic Profit
Residual Income A$0.4500 A$0.5100 A$0.7800 76
ROIC Compounder A$0.7500 A$0.8700 A$0.9800 72
Growth Earnings
Growth-Adj P/E A$0.8100 A$1.16 A$1.50 68

Widest divergence: Growth DCF (A$1.98) versus Asset-Based (A$0.3500). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) A$341M
Revenue growth (YoY) +0.1%
Net margin 3.8%
Return on equity 13.2%
Free cash flow A$46.5M FY2025
P/E ratio 14.7
More key figures
Operating margin 11.0%
EPS (TTM) A$0.0600
Dividend yield 9.8%
EPS growth (YoY) -22.6%
Net debt A$144M FY2025

Figures from reported company fundamentals · as of Aug 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 64 · Market factors (momentum, volatility) 47

Profitability 60
Margins and returns on capital today
Quality Growth 59
Are margins and returns improving?
Cashflow 79
Earnings quality: real cash, not paper profit
Fin. Strength 25
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 87
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 25
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

NZME Limited, together with its subsidiaries, engages in the integrated media and entertainment business in New Zealand. It operates through three segments: Audio, Publishing, and OneRoof. The company operates terrestrial radio stations, digital iHeartRadio, podcasts, and radio brand websites; print publications and digital news websites, including nzherald.

Full company description

NZME Limited, together with its subsidiaries, engages in the integrated media and entertainment business in New Zealand. It operates through three segments: Audio, Publishing, and OneRoof. The company operates terrestrial radio stations, digital iHeartRadio, podcasts, and radio brand websites; print publications and digital news websites, including nzherald.co.nz. and BusinessDesk; oneroof.co.nz website; and real estate print publications. It also provides event services. The company was formerly known as Wilson & Horton Limited. The company was incorporated in 2001 and is headquartered in Auckland, New Zealand.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

NZME Limited reported revenue of A$341M in FY2025 versus A$349M in FY2021, a compound −0.5%/yr. Reported net income was A$13.1M in FY2025, compounding −21.6%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
A$341M
Latest YoY
−1.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−1.3%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.2%
Avg. growth/yr (12Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−5.2%
Revenue −0.5%/yr
FY21 A$349M
FY22 A$355M
FY23 A$341M
FY24 A$346M
FY25 A$341M
Net income −21.6%/yr
FY21 A$34.6M
FY22 A$23.4M
FY23 A$12.8M
FY24 −A$16.0M
FY25 A$13.1M

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Cite: Fair Value Calculator (2026). "NZME Limited Fair Value". https://www.fairvalue-calculator.com/stock/NZM

Peer Group

Entertainment · 268 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 67 · Top 25%
Fair Value upside +32% · Above median
Return on equity (TTM) 13% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 4% · Above median
Operating margin (TTM) 11% · Top 25%
Revenue growth 0% · Below median
Dividend yield (TTM) 10.2% · Top 25%
Debt / equity 0.25× · Higher than median

Valuation Multiples vs Entertainment median · lower = cheaper

P/E (TTM) 14.7× · Cheaper than median
P/B 1.23× · Pricier than median
P/S (TTM) 0.35× · Cheaper than median
P/FCF 2.6× · Cheaper than median
EV/EBITDA 3.8× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 76 · sector 6
FUTURE 1 · sector 12
PAST 53 · sector 0
HEALTH 88 · sector 97
DIVIDEND 100 · sector 44

Insider activity: 45/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Entertainment stocks, each showing price versus our Fair Value estimate (as of Aug 14, 2026).

Stock Price Fair Value vs Fair Value
Netflix, Inc ZNFL C$6.08 C$2.66 -56%
The Walt Disney Company DIS $103.18 $80.62 -22%
Warner Bros. Discovery, Inc WBD $27.65 $9.03 -67%
Live Nation Entertainment, Inc LYV $185.33 $59.97 -68%
Empresas Cablevisión, S.A. CABLECPO 55.00 MXN 59.14 MXN +8%
PT MNC Digital Entertainment Tbk, MSIN 370.00 IDR 212.14 IDR -43%
Prime Focus Limited PFOCUS ₹268.00 ₹63.45 -76%
JYP Entertainment Corporation 035900 46,000 KRW 82,382 KRW +79%
SM Entertainment Co 041510 75,500 KRW 208,415 KRW +176%
PVR INOX Limited PVRINOX ₹1,176 ₹467.91 -60%

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Frequently asked questions

Is NZME Limited (NZM) overvalued or undervalued?
As of Aug 14, 2026, our model estimates a fair value of A$1.16 versus a price of A$0.8800, about +32% (undervalued).
What is the fair value of NZM?
Our model-based fair value for NZME Limited is A$1.16 (as of Aug 14, 2026), built from audited fundamentals. The current price is A$0.8800.
What is the quality score of NZM?
NZME Limited has a Quality Score of 67/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of NZME Limited (NZM)?
NZME Limited reported trailing-twelve-month revenue of about A$341M (latest available figure, as of Aug 14, 2026).
What is the net profit margin of NZM?
The net profit margin of NZME Limited is about 3.8%, meaning it keeps roughly 3.8% of revenue as net income. Based on the latest reported figures.
Does NZME Limited pay a dividend?
NZME Limited currently shows a dividend yield of about 9.78% relative to its recent price (as of Aug 14, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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