Ricardo Pillai
3 min read
In This Article:
We came across a bullish thesis on Entravision Communications Corporation (EVC) on The Value Road's Substack. In this article, we will summarize the bulls’ thesis on EVC. Entravision Communications Corporation (EVC)'s share was trading at $ 1.9 as of 3rd June according to Yahoo Finance.
Entravision Communications (EVC), a microcap broadcaster with a $177 million market cap and $279 million enterprise value, offers a rare convergence of legacy asset value, fast-growing digital upside, and regulatory tailwinds.
The company owns a portfolio of 49 Hispanic TV stations and 44 Hispanic radio stations, but its most dynamic asset is Smadex, a Barcelona-based ad-tech platform that posted 57% revenue growth in Q1 2025 alongside meaningful margin expansion, reaching 13.8% EBITDA. Smadex is on pace for a $28 million EBITDA run rate, and even a conservative 13x multiple would value it at $364 million—surpassing Entravision’s entire enterprise value.
This digital engine provides a powerful counterbalance to flat legacy media, which itself is showing signs of a turnaround as breakeven results begin to improve and potential acquirers like Estrella Media appear to be circling, now even sharing office space with the company.
Beyond internal catalysts, Entravision could benefit meaningfully from external regulatory shifts. The FCC is signaling openness to easing national and local station ownership caps, which would likely ignite a wave of M&A in the broadcasting space.
Entravision’s clean balance sheet—unusual in a sector often weighed down by debt—positions it as both a strategic buyer and a desirable acquisition target. Add in optionality from spectrum auctions and an active 2025 political ad cycle, and the setup becomes even more attractive.
With a mispriced high-growth asset, strategic positioning in a consolidating industry, and asymmetric upside from policy shifts, EVC presents a compelling long-term opportunity with limited downside.
Previously we covered a standout bullish thesis on Maui Land & Pineapple Company (MLP) written by The Value Road on substack. It focused on the fact that MLP may look unimpressive on paper, with a book value of just $1.74 per share, but this figure masks the true worth of its 22,300 acres in West Maui—land carried at century-old historical cost under GAAP.
Entravision Communications Corporation (EVC) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held EVC at the end of the first quarter which was 12 in the previous quarter. While we acknowledge the risk and potential of EVC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
