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DIRECTV (DTV): This Leading Digital TV Business Is a Buy

At $41 per share, Comcast has a total market cap of $108.5 billion. The market values Comcast a bit higher, at 6.8 times EV/EBITDA. DISH is trading around $36.80 per share, with a total market cap of around $16.7 billion. It is the most expensively valued company among the three, at 7.33 times EV/EBITDA.

Recently, DISH Network Corp (NASDAQ:DISH) made an offer to buy Sprint Nextel Corporation (NYSE:S) for around $7 per share, including $4.76 in cash and $2.24 in stock. DISH thought that the combined company would offer customers the greatest possible bandwidth for video and data.

My Foolish take

DIRECTV (NASDAQ:DTV) seems to be a good bet at its current price due to its fastest growing operating performance, increasing cash flow, and low valuation. In addition, the company has been using low interest debt to finance its operations. The high debt level is not a burden for DIRECTV due to its strong cash flow generating ability.

The article This Leading Digital TV Business Is a Buy originally appeared on Fool.com and is written by Anh HOANG.

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