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To be quite honest, it doesn’t matter if ITV is a takeover target or not, it is so undervalued it can only rise big time in the medium/

Exceptional performance in these difficult times and forecast very promising. Presume the share price will tank.

Broker forecasts mean nothing. The price changes so much and the forecast can only be based on a particular point of time.

If Channel 4 is worth £2 billion, ITV must be worth £10-12 billion.

I forecast that the earnings will increase to £6 billion, profits will increase to £600 million and the share price will be 25p.

I feel very relaxed about the ridiculously low share price. One reason is that when assessing value for shares, the earnings yield is considered by many investors to be a true gauge of where a share price should be. It is generally considered that an earnings yield of 5% is good; ITV’s earnings yield is 15.5%. Enough said.

Great move. Shows good vision.

Interesting that, despite incurring losses due to the recent downturn in the share price, The Naked Trader has bought more ITV shares. He clearly feels the shares are very undervalued. His record of picking winners is second to none.

Same old stuff from Tom. Does he really think the profits will decline more than threefold to make the earnings yield unreasonable? There is so much room here that even a largish profits fall will keep the earnings yield well above the reasonable level.

So a reasonable earnings yield is 5%. What is ITV’s? 15.4%! Does that tell you the share price is significantly undervalued?

I think Tom works for Berenberg!

As far as I can see, even if the company’s profits were to halve, their P/E ratio would still be at a very low level compared to similar companies. There is clearly room for a significant advance in the share price in the medium term so think JP Morgan are clearly on the right track with their forecast. Keep the faith guys and I believe you will be rewarded.

Don’t they deal in US stocks?

Any comments Tom?

I bet the market will concentrate on the June 2022 TAR of minus 15% and hammer the stock accordingly. They will avoid all the other good news.

I am confused. Would the share price have remained at 115p if there had not been a future plan or would it have fallen anyway on the stellar earnings? Such a ridiculously low P/E ratio for such a profitable company. At least JPM are showing some sense.

I am clearly one of the few who think ITV have got their strategy spot on. They have a very successful linear business with programmes that the majority want to watch; therefore commanding increasing advertising revenues. They have a Studios division which excels at making excellent programmes for both themselves and others. They have and are investing in a streaming service which, unlike the major players, will provide the opportunity to opt for a non premium service which will have advertising or a premium service which will have none if you pay a small subscription. Just on fundamentals a p/e of around 7 is ridiculously low and there is little sign that earnings will deteriorate greatly in the next year or so. Of course the share price may be manipulated lower in the future but there is no doubt in my mind that ITV is a great company which will go from strength to strength and the share price will eventually reflect this.

Can someone explain what figures Berenberg’s forward P/E ratio for 2023 of 10 are based on. Also, what peers are they talking about as I cannot find any with a lower P/E ratio than ITV. Finally, look at Berenberg’s forecasts over the preceding months where they simply follow the share price trend.

In other words, forget about poor pensioners, students and working class who rely on a free non subscription service.

One day the manipulation will cease and the share price will return to reflect its fair value which is more than double where it is now. The fundamentals are very strong and it is hard to see what the BOD could do to make these even stronger. Tom, you have been so negative but have not given us any ideas on what change of direction the company should take. Strong advertising revenue, record profits for productions in Studios and a stronger streaming service - all sound good so how can these be improved? Drop the streaming service? Just maintain the status quo? Please let us have your educated advice Tom rather than just blasting the Dame.