ITV ITV.L
United KingdomCommunication Services · BroadcastingLondon Stock Exchange · GBP
0.79 GBP (+20.2%)
6 analysts
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ITV is the UK's main commercial broadcaster, generating revenue from television advertising and from the production and sale of content through ITV Studios.
Listed on London Stock Exchange · Symbol ITV.L · LON: ITV · Currency GBP
Key points
from its scores- ✓Attractive valuation9.3
- ✓Attractive dividend7.6
- ✓Favourable backdrop7.5
- ✕Little competitive advantage4.5
- !Weak share-price trend5.1
AI analysis
bottom line, main risk, context and newsValuation is very attractive and earnings growth is solid, but the low operating margin and negative momentum warrant caution.
ITV trades at a P/E of 10.96 and an FCF yield of 8.82%, reflecting an attractive valuation, while its 26.7% earnings growth and PEG of 0.30 suggest the market is not fully pricing in its potential. Financial health is solid with net debt of only 1.24x EBITDA, although the operating margin of 7.49% is tight and 12-month momentum is negative (-7.89%).
Dependence on advertising revenue, which is cyclical and sensitive to the UK economy, combined with a tight operating margin of 7.49% that limits the ability to absorb downturns in ad spending.
Context and risks
ITV is a UK commercial broadcaster with revenue from advertising and content production. It has no material exposure to interest rates, commodities, shipping routes, or tariffs that would affect its core business. The current macro context does not alter its specific risk profile.
Is ITV stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 37% below the Communication Services median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 11.0 | 17.1 | −36% |
| EV / EBITDA | 6.0 | 9.6 | −37% |
| Price / book | 1.4 | 2.3 | −38% |
| Price / sales | 0.7 | 1.9 | −65% |
Sector: median of the 102 Communication Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 9.3 out of 10 (median for Communication Services: 6.3).
Average analyst target: 0.79 GBP, +20.2% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 5.9 (sector 6.6), Growth 6.3 (sector 5.4).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Communication Services medianValuation
- P/E
- 11.0
- Forward P/E
- 7.9
- EV / EBITDA
- 6.0
- Price / book
- 1.4
- Price / sales
- 0.7
- PEG
- 0.30
- Market cap
- 2.4B GBP
- Enterprise value
- 3.1B GBP
Profitability
- ROE
- 13.5%
- ROA
- 7.1%
- ROIC (approx.)
- 10.2%
- Gross margin
- 16.7%
- Operating margin
- 7.5%
- Net margin
- 6.6%
- Free cash flow
- 211.9M GBP
- FCF yield
- 8.8%
- Cash conversion
- 40%
Solvency
- Total debt
- 916.0M GBP
- Net debt
- 652.0M GBP
- Cash
- 264.0M GBP
- EBITDA
- 524.0M GBP
- Net debt / EBITDA
- 1.24
- Debt / equity
- 52.19
- Current ratio
- 1.25
- Quick ratio
- 0.80
Growth
- Revenue growth
- +1.1%
- Earnings growth
- +26.7%
- EPS (TTM)
- 0.06 GBP
- EPS (forward)
- 0.08 GBP
Dividend
- Dividend yield
- 7.6%
- Payout
- 82.0%
Risk and market
- Beta
- 0.79
- Analyst consensus
- Hold (6)
- Target price
- 0.79 GBP
Recent news
All ITV.L news →Compare it with its sector
All 102 in Communication Services →Frequently asked questions about ITV
Is ITV stock cheap or expensive?
On P/E and EV / EBITDA, it trades 37% below the Communication Services median on average. Valuation score: 9.3 out of 10 (median for Communication Services: 6.3). Average analyst target: 0.79 GBP, +20.2% versus the price. This is not investment advice.
What score does ITV get on MeridIAn Screener?
It scores 6.6 out of 10, rank 460 of 2,130 (better than 77% of the companies analysed). Its strongest category is Valuation (9.3) and its weakest, Quality / Moat (4.5). Analysis of 08/10/2026.
What is ITV's P/E ratio?
Its P/E is 11.0: the share price equals 11.0 times earnings per share over the last 12 months. The Communication Services median is 17.1. Based on the earnings analysts expect, the forward P/E is 7.9.
How much is ITV worth on the stock market?
Its market capitalisation is 2.4B GBP and its enterprise value, debt included, is 3.1B GBP.
How much debt does ITV have?
Its net debt (debt minus cash) is 652.0M GBP. That is 1.24 times its EBITDA; the Communication Services median is 2.19.
Does ITV pay a dividend?
Yes: its dividend yield is 7.60% and it pays out 82% of its earnings.
How has ITV stock performed over the last year?
It has fallen 13.2% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 0.87 GBP. Past performance does not guarantee future results.
What do analysts think of ITV?
6 analysts cover it; their average recommendation is “Hold” and their average target is 0.79 GBP (+20.2% versus the price). It is an estimate, not market data.