Spectrum Valuation Puts Sinclair at the Top

A Wells Fargo analysis values the station Sinclair Broadcast Group’s spectrum at $2.9 billion, or $35.74 per share, 35% above the company’s May 16 closing price.

“We think it important for investors to focus on the broadcasters’ most important asset — the about 300 MHz of nationwide spectrum that is owned … collectively by this industry,” the report says. Using the same analysis, the study says that the spectrum value of stock for Media General and Belo Corp. were 25% and 23% above their May16 closing prices, respectively. The report goes on to say the value of the broadcast spectrum was based on the prices generated by a 2008 FCC spectrum auction, adjusted for inflation.