ITV: The Most Under Appreciated Content Asset in UK TMT

Executive Summary

ITV is entering 2026 in a stronger position. The UK advertising market is forecast to grow by a healthy 5-6%, with spending on digital ads growing even faster. A major boost will come from the men’s FIFA World Cup, which is expected to provide a significant, one-off uplift to traditional TV advertising. There is even a rumoured takeover by Sky, adding a potential layer of upside.

Alongside this, ITV Studios remains the company's most reliable division, earning diversified revenue from global commissions and its owned content, which provides a valuable cushion against any UK specific issues.

Despite these positive signs, ITV's stock price trades at a significant discount compared to its peers. This is because investors remain worried about the fragile UK economy, rising costs, and whether ITV can successfully monetise its new streaming service, ITVX.

We believe these risks, while real, are now more than reflected in the current share price. Our valuation work shows the stock is materially undervalued.

We see ITV as an attractive, event-driven investment. The combination of the World Cup, growing high-margin digital revenue, and steady performance from ITV Studios creates a clear opportunity for the stock to re-rate higher over the next year. For investors willing to look past the well-known UK risks, the current price offers compelling upside with identifiable catalysts on the horizon.

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ITV Equity Report (NEW).pdf

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