Viacom (VIAB) shares are currently trading under $30, with a market cap of about $11.5 billion. The stock has declined by ~20% YTD over fears of weak performance in an increasingly changing media environment as viewers nowadays have altered the way they consume content. I believe that Viacom is undervalued, with an intrinsic value of $80, representing a good margin of safety. Fears about the company's future are out of tune with the true nature of the business in which Viacom operates. Declines in the company's performance are simply not sustainable long term for reasons described below.
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