About Us
Radio Station Valuation
Radio stations are valued through a process called a Fair Market Valuation, or FMV. This process allows for recognition of the unique features of the broadcast industry:
- Value based on the number of people (POPS) covered by the station's signal, using a standard multiple
- Value based on the station's operating income (EBITDA or BCF) or cash flow, using a standard multiple
- Value based on the station's gross revenue (less used today)
Non-Commercial radio stations are valued with the POPS method, based on the population covered by their signal.
For FM stations, we use the 60 dBu contour, compared on a regional basis, as well as nationally.
If a station is "sufficiently" profitable, the valuation is based on a multiple of its operating income, or as it is sometimes called, BCF (Broadcast Cash Flow)(Modified EBITDA). We might use an additional metric, Multiple of Gross Revenue.
If a station does not produce positive operating income, it is valued on a POPS, or persons covered basis, using a standard contour and per POP multiple. A POP is defined as "a person covered by the station's signal).
We review all station transfers filed at the FCC and develop a POPS multiple for each one. We create a matrix comparing that station to all others over the past year, broken down by region, and class of station.
Our COMPLETE Valuation reports look at all available metrics.
Our Stick Value, or POPS Valuation report only considers the population covered by the station, compared with similar stations regionally and nationally.
Our POPS Value reports are also used to value non-commercial (NCE) radio stations.
Frequently Asked Questions
What is the difference between an "Appraisal" and a "Valuation"?
Appraisal: An Appraisal is an estimate of the market value of property, usually real estate. It does not consider the value of operating income from the property. Physical assets such as buildings or land rarely comprise a significant portion of a radio station's fair market value.
Valuation: Fair Market Value (FMV) is generally defined as the cash, or cash equivalent, price for which a property would change hands between a willing buyer and a willing seller in an arms length transaction, both being adequately informed of the relevant facts, and neither being compelled to buy or sell In the absence of an actual sale, FMV may be estimated using industry accepted guidelines.
The FMV of a radio station uses one, or more, usually all, of these metrics:
- Operating Income
- Cash Flow
- Broadcast Cash Flow
- EBITDA
- Population Covered by Standard Countour
- Multiple of Revenue
Who We Are
Clifton Gardiner, President
Radio Station Valuation is a service of Clifton Gardiner, LLC, a longtime broadcast brokerage firm. We have completed over 550 brokerage transactions and numerous radio station and cable television valuations during over 35 plus years in the business. The company's experience in building and owning stations gives us a deep insight into the real value of broadcast properties.
Our valuation services have been utilized by many owners and lenders, and are known for their accuracy. Our longtime industry experience helps insure a successful outcome. There are many reasons to engage Clifton Gardiner, LLC to perform a valuation of your radio station, including anticipation of a capitalization, a merger or acquisition, or a sale of the station. This may also include exit and estate planning.
Valuing a radio station is a unique process that requires a thorough understanding of the characteristics of the broadcast industry and years of experience, along with an extensive data base of metrics.
We know and understand the marketplace as it relates to the "real life" current value of your enterprise. We have the experience and objectivity, and the professionalism to be able to prepare a very understandable and useful valuation report.