Grupo Televisa, S.A.B. (TV): A Bull Case Theory

We came across a bullish thesis on Grupo Televisa, S.A.B. on Value investing subreddit by Turbulent_Ad2075. In this article, we will summarize the bulls’ thesis on TV. Grupo Televisa, S.A.B.'s share was trading at $3.33 as of January 28th. TV’s trailing P/E was 0.13 according to Yahoo Finance.

Grupo Televisa, S.A.B., together with its subsidiaries, owns and operates cable companies and provides direct-to-home satellite pay television system in Mexico and internationally. TV presents a compelling investment opportunity as a stark mispricing exists between its intrinsic value and current market valuation. Following years of structural simplification and balance sheet fortification, the company has transformed into a lean connectivity provider in Mexico and a dominant media powerhouse in the U.S. through its 45% stake in TelevisaUnivision.

The market, however, undervalues these assets, pricing the equity at just 3.9x EV/EBITDA and a Price-to-Book ratio of 0.26x, ignoring the operational integration of Sky Mexico and Izzi, the profitability of the ViX streaming platform, and the upcoming revenue catalyst from the 2026 FIFA World Cup. By acquiring full control of Sky and merging it with Izzi, Televisa has created a unified fiber-based "quadruple play" network, allowing satellite subscribers to migrate to fiber and realize substantial cost synergies.

The combined Cable segment delivered a 38.5% operating margin in Q3 2025, while Enterprise operations grew revenue by 7.7%, reflecting strong demand for business connectivity and supporting robust free cash flow generation of Ps. 4.2 billion through nine months, enabling rapid deleveraging to a net leverage ratio of 2.1x. TelevisaUnivision’s ViX platform has achieved profitability in record time, with projected subscriber growth of 18% in 2025, monetizing the underserved U.S. Hispanic market through subscriptions and advertising.

The 2026 FIFA World Cup offers a significant upside via expanded ad inventory and customer acquisition. Current valuations imply domestic operations are effectively free, and insider buying alongside a Ps. 2.0 billion share repurchase program signals strong alignment with shareholders. With operational discipline, financial flexibility, and a major content-driven catalyst, Televisa is poised for a substantial rerating, making it a strong buy with significant upside potential.

Previously we covered a bullish thesis on Comcast Corporation (CMCSA) by Boyar Research in February 2025, highlighting its broadband positioning, strong EBITDA margins, $12.5 billion free cash flow, and shareholder-friendly returns. The stock has depreciated approximately by 21.73% due to subscriber losses. The thesis still stands as wireless growth and a cable spin-off support upside. Turbulent_Ad2075 shares a similar view but emphasizes Televisa’s Sky-Izzi integration, ViX profitability, and the 2026 World Cup catalyst.

Grupo Televisa, S.A.B. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held TV at the end of the third quarter which was 9 in the previous quarter. While we acknowledge the potential of TV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.