DCF Tool

FOXA

Fox Corporation – Television Broadcasting
Fox Corporation produces and distributes compelling news, sports and entertainment content through its iconic domestic brands including: FOX News Media, FOX Sports, FOX Entertainment and FOX Television Stations. These brands hold cultural significance with consumers and commercial importance for distributors and advertisers. The breadth and depth of its footprint allows them to deliver content that engages and informs audiences, develop deeper consumer relationships and create more compelling product offerings. FOX maintains an impressive track record of news, sports, and entertainment industry success that shapes its strategy to capitalize on existing strengths and invest in new initiatives.
Analysis Results
Intrinsic Value $6.81
Latest Price $34.54
Relative Value 407% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -37.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -37.8%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.47 0.442
2023 0.293 0.259
2024 0.182 0.151
2025 0.113 0.0885
2026 0.0706 0.0518
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1.64 billion. This corresponds to a present value of 1.13 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 0.992 billion. Adding in the terminal value gives a total present value of 2.12 billion.

There are presently 312.0 million outstanding shares, so the intrinsic value per share is 6.81.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 8,749,000,000
Current Cash 5,886,000,000
Current Liabilities 3,002,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -139,000,000
Change in NCWC -1,074,000,000
EBIT 2,765,000,000
Tax Provision 717,000,000
Depreciation and Amortization 300,000,000
Capital Expenditure -484,000,000
Unlevered Free Cash Flow 827,594,585
Current Assets 7,486,000,000
Current Cash 4,645,000,000
Current Liabilities 1,906,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 935,000,000
Change in NCWC -597,000,000
EBIT 2,497,000,000
Tax Provision 402,000,000
Depreciation and Amortization 258,000,000
Capital Expenditure -359,000,000
Unlevered Free Cash Flow 1,113,348,360
Current Assets 6,478,000,000
Current Cash 3,234,000,000
Current Liabilities 1,712,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,532,000,000
Change in NCWC 211,000,000
EBIT 2,431,000,000
Tax Provision 581,000,000
Depreciation and Amortization 212,000,000
Capital Expenditure -235,000,000
Unlevered Free Cash Flow 1,983,923,111

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