NWS Valuation

News Corp

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32.890

-0.32(-0.964%)1D

Overview
Forecast
Valuation
Earnings

NWS Relative Valuation

NWS's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, NWS is overvalued; if below, it's undervalued.

Historical Valuation

News Corp (NWS) is now in the Fair zone, suggesting that its current forward PE ratio of 29.35 is considered Fairly compared with the five-year average of 31.47. The fair price of News Corp (NWS) is between 24.65 to 37.39 according to relative valuation methord.

Relative Value

Fair Zone

24.65-37.39

Current Price：33.01

Fair

33.79

Trailing

Forward

11.86

EV/EBITDA

News Corp. (NWS) has a current EV/EBITDA of 11.86. The 5-year average EV/EBITDA is 10.23. The thresholds are as follows: Strongly Undervalued below 7.46, Undervalued between 7.46 and 8.85, Fairly Valued between 11.62 and 8.85, Overvalued between 11.62 and 13.00, and Strongly Overvalued above 13.00. The current Forward EV/EBITDA of 11.86 falls within the Overvalued range.

17.11

EV/EBIT

News Corp. (NWS) has a current EV/EBIT of 17.11. The 5-year average EV/EBIT is 18.68. The thresholds are as follows: Strongly Undervalued below 12.08, Undervalued between 12.08 and 15.38, Fairly Valued between 21.98 and 15.38, Overvalued between 21.98 and 25.28, and Strongly Overvalued above 25.28. The current Forward EV/EBIT of 17.11 falls within the Historic Trend Line -Fairly Valued range.

1.96

News Corp. (NWS) has a current PS of 1.96. The 5-year average PS is 1.34. The thresholds are as follows: Strongly Undervalued below 0.73, Undervalued between 0.73 and 1.04, Fairly Valued between 1.65 and 1.04, Overvalued between 1.65 and 1.95, and Strongly Overvalued above 1.95. The current Forward PS of 1.96 falls within the Strongly Overvalued range.

14.90

P/OCF

News Corp. (NWS) has a current P/OCF of 14.90. The 5-year average P/OCF is 10.74. The thresholds are as follows: Strongly Undervalued below 6.54, Undervalued between 6.54 and 8.64, Fairly Valued between 12.84 and 8.64, Overvalued between 12.84 and 14.93, and Strongly Overvalued above 14.93. The current Forward P/OCF of 14.90 falls within the Overvalued range.

16.62

P/FCF

News Corp. (NWS) has a current P/FCF of 16.62. The 5-year average P/FCF is 16.03. The thresholds are as follows: Strongly Undervalued below -6.17, Undervalued between -6.17 and 4.93, Fairly Valued between 27.13 and 4.93, Overvalued between 27.13 and 38.23, and Strongly Overvalued above 38.23. The current Forward P/FCF of 16.62 falls within the Historic Trend Line -Fairly Valued range.

News Corp (NWS) has a current Price-to-Book (P/B) ratio of 1.86. Compared to its 3-year average P/B ratio of 1.70 , the current P/B ratio is approximately 9.55% higher. Relative to its 5-year average P/B ratio of 1.63, the current P/B ratio is about 14.40% higher. News Corp (NWS) has a Forward Free Cash Flow (FCF) yield of approximately 4.26%. Compared to its 3-year average FCF yield of 4.93%, the current FCF yield is approximately -13.62% lower. Relative to its 5-year average FCF yield of 5.43% , the current FCF yield is about -21.58% lower.

2.14

P/B

Median3y

1.70

Median5y

1.63

4.26

FCF Yield

Median3y

4.93

Median5y

5.43

Competitors Valuation Multiple

The average P/S ratio for NWS's competitors is 0.93, providing a benchmark for relative valuation. News Corp Corp (NWS) exhibits a P/S ratio of 1.96, which is 111.96% above the industry average. Given its robust revenue growth of 0.81%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of NWS increased by 19.25% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 3.20 to 4.08.

The secondary factor is the Revenue Growth, contributed 0.81%to the performance.

Overall, the performance of NWS in the past 1 year is driven by Margin Expansion. Which is more sustainable.

0.81%

2.09B → 2.11B

Revenue Growth

27.50%

3.20 → 4.08

Margin Expansion

-9.06%

43.47 → 39.54

P/E Change

19.25%