Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
15.0% below
+17.6% to fair value
ACCE score
36
out of 100
Analysts
100% buy
2 covering
1-year return
-43.9%
Dividend yield
20.94%
Townsquare Media Inc. Class A Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Townsquare Media runs local radio stations, digital marketing services for small and mid-sized businesses, and a set of owned digital publishing and events properties, with a gross margin of 21.6% and an operating margin of 14.5% on flat revenue (-0.1% growth). The case rests on a business that still produces operating cash despite stagnant top-line sales, with a forward P/E of 12.4 against a market cap of about $71M, which makes it a small, cheap, and levered equity where the equity value is a thin slice of the enterprise. The score of 36/100 and a negative return on equity of -116.5% reflect a balance sheet that has absorbed large losses, so the thesis depends on whether operating earnings can de-lever the capital structure before the revenue base erodes further. The near-term question is whether the digital services segment can grow fast enough to offset continued weakness in legacy radio advertising. Worth a deeper look for the balance sheet and debt maturity schedule, not for a growth story, since the reported numbers show none.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Revenue shrinking, margins thin
Revenue is down 0.1% year on year and 9.1% quarter on quarter, with net margin at -11.8% despite a 14.5% operating margin, pointing to heavy interest or other below-the-line costs.
high
Leverage far beyond equity
Debt to equity of -10.87 and ROE of -116.5% show negative book equity, so the $15M of free cash flow is set against a capital structure that leaves little cushion.
moderate
Score down sharply in 90 days
The ACCE score fell 13 points from 49 to 36, with quality at 26 and momentum at 17, a weak reading across the components that drive the score.
moderate
Insider selling outweighs buying
Recent disclosures show $1.26M of sales against $0.01M of buys, a clear skew toward selling among insiders.
AI research notes
AI-assisted·How I use AIWritten Oct 21, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last twelve months reached $15M, so the business is still turning cash into the bank.
Shares trade at a forward P/E of 12.4x against a sector median of 16.9x, a discount on earnings expectations.
The latest quarter beat earnings expectations, with EPS of 0.21 against 0.19 expected, a surprise of +10.5%.
Why it could disappoint
Revenue barely moved, with growth of -0.1% over the past year, far below the 2.9% average of recent years.
Net margin of -11.8% and return on equity of -116.5% show the company is losing money on the capital it uses.
Negative equity, with debt to equity at -10.87, and a share count that grew 3.7% dilutes existing holders.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 4, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where TSQ's valuation models land
Price
$3.83
Model fair value
$4.50
Model range
$3.25 to $5.76
Fair value $4.50
Price $3.83
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
+A plain reason under every score
+Conviction breakdown and growth / value / quality / momentum scores