NXST:NASDAQNexstar Media Group, Inc. Analysis

NXST trades around $188, nearly double its DCF fair value of $89, indicating a pronounced overvaluation despite a forward P/E of just 7.8. Technicals are bearish – the price sits below the 20‑day, 50‑day and 200‑day SMAs, RSI is at 37 and the MACD histogram is negative – and the stock is hovering just above a support level near $187. Volume is rising, but the looming ex‑dividend date and a payout ratio above 150% raise questions about dividend sustainability. On the upside, the company posted 13% revenue growth, and the pending Nexstar‑Tegna merger is expected to lift earnings, as reflected in the strong forward earnings estimate and a “strong buy” analyst consensus. However, the merger faces antitrust lawsuits in multiple states and a Supreme Court challenge over DirecTV fees, adding regulatory headwinds.