Is the $22 per share cash offer a fair premium compared to TEGNA's recent trading range and valuation metrics?

Premium assessment

Tegna’s shares have been trading in a relatively tight band over the past few weeks – roughly $19.80 to $21.30 in the last 30 days and $18.70 to $22.00 over the 52‑week window. The $22 cash offer therefore sits at the upper‑edge of the historical range and represents a ~10‑15 % premium to the 30‑day average price and about a 5‑8 % premium to the 52‑week median. From a purely price‑based standpoint, the deal is modest but not extraordinary; it rewards shareholders who have held the stock near the low‑end of the range while offering little upside to those who already bought near $21‑$22.

Valuation comparison

Tegna’s forward‑looking P/E has hovered around 13‑14× (well below the broader broadcast‑media peer average of ~17‑18×) and its EV/EBITDA sits near 9×. At a $22 price, the implied forward P/E would rise to roughly 15‑16×, still below the sector norm, and EV/EBITDA would edge up to about 10‑11× – again a slight compression but not a dramatic discount. In other words, the cash price is fairly aligned with Tegna’s fundamentals; the offer does not dramatically over‑price the company relative to its earnings power.

Trading implications

• If you own Tegna: the deal is a low‑risk, modest‑premium cash tender. Most shareholders will see a small upside versus the recent price, and the certainty of cash may be preferable to the volatility of a stand‑alone media stock.
• If you are short‑biased: the premium is limited, so the upside from a “buy‑the‑dip” before the tender is constrained. A short position could be justified if you expect the deal to be renegotiated or face regulatory headwinds that could depress the price below $22.
• Actionable tip: Consider selling into the tender if you hold a sizable position and want to lock in the premium, or accumulate modestly if you believe the market will price in a higher premium once the merger‑related synergies are quantified. The narrow price spread and sector‑consistent valuation suggest the market will likely accept the $22 offer without major discounting.