DCF Tool

NWSA

News Corp – Television Broadcasting
News Corp is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. The company comprises businesses across a range of media, including: digital real estate services, subscription video services in Australia, news and information services and book publishing. Headquartered in New York, News Corp operates primarily in the United States, Australia, and the United Kingdom, and its content and other products and services are distributed and consumed worldwide.
Analysis Results
Intrinsic Value $32.52
Latest Price $15.11
Relative Value 54% undervalued
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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 9.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.5%, 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)
2023 0.574 0.533
2024 0.628 0.543
2025 0.687 0.552
2026 0.752 0.562
2027 0.824 0.572
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 15.1 billion. This corresponds to a present value of 9.78 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.76 billion. Adding in the terminal value gives a total present value of 12.5 billion.

There are presently 386.0 million outstanding shares, so the intrinsic value per share is 32.52.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,093,000,000
Current Cash 1,822,000,000
Current Liabilities 3,519,000,000
Current Debt 293,000,000
Non-Cash Working Capital (NCWC) -955,000,000
Change in NCWC 31,000,000
EBIT 968,000,000
Tax Provision 52,000,000
Depreciation and Amortization 688,000,000
Capital Expenditure -499,000,000
Unlevered Free Cash Flow 1,126,009,852
Current Assets 4,456,000,000
Current Cash 2,236,000,000
Current Liabilities 3,234,000,000
Current Debt 28,000,000
Non-Cash Working Capital (NCWC) -986,000,000
Change in NCWC -324,000,000
EBIT 528,000,000
Tax Provision 61,000,000
Depreciation and Amortization 680,000,000
Capital Expenditure -390,000,000
Unlevered Free Cash Flow 422,426,666
Current Assets 3,461,000,000
Current Cash 1,517,000,000
Current Liabilities 2,682,000,000
Current Debt 76,000,000
Non-Cash Working Capital (NCWC) -662,000,000
Change in NCWC -178,000,000
EBIT 322,000,000
Tax Provision 21,000,000
Depreciation and Amortization 644,000,000
Capital Expenditure -438,000,000
Unlevered Free Cash Flow 350,000,000
Current Assets 4,050,000,000
Current Cash 1,643,000,000
Current Liabilities 3,340,000,000
Current Debt 449,000,000
Non-Cash Working Capital (NCWC) -484,000,000
Change in NCWC -11,000,000
EBIT 568,000,000
Tax Provision 126,000,000
Depreciation and Amortization 659,000,000
Capital Expenditure -572,000,000
Unlevered Free Cash Flow 441,830,508
Current Assets 4,394,000,000
Current Cash 2,034,000,000
Current Liabilities 3,295,000,000
Current Debt 462,000,000
Non-Cash Working Capital (NCWC) -473,000,000
Change in NCWC 77,000,000
EBIT -406,000,000
Tax Provision 355,000,000
Depreciation and Amortization 472,000,000
Capital Expenditure -364,000,000
Unlevered Free Cash Flow -221,000,000
Current Assets 3,815,000,000
Current Cash 2,016,000,000
Current Liabilities 2,452,000,000
Current Debt 103,000,000
Non-Cash Working Capital (NCWC) -550,000,000
Change in NCWC -165,000,000
EBIT 141,000,000
Tax Provision 28,000,000
Depreciation and Amortization 449,000,000
Capital Expenditure -256,000,000
Unlevered Free Cash Flow 169,000,000
Current Assets 3,889,000,000
Current Cash 1,832,000,000
Current Liabilities 2,442,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -385,000,000
Change in NCWC -254,000,000
EBIT 367,000,000
Tax Provision -54,000,000
Depreciation and Amortization 505,000,000
Capital Expenditure -256,000,000
Unlevered Free Cash Flow 362,000,000
Current Assets 3,975,000,000
Current Cash 1,951,000,000
Current Liabilities 2,155,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -131,000,000
Change in NCWC 8,000,000
EBIT 380,000,000
Tax Provision 134,000,000
Depreciation and Amortization 530,000,000
Capital Expenditure -378,000,000
Unlevered Free Cash Flow 406,000,000
Current Assets 5,270,000,000
Current Cash 3,145,000,000
Current Liabilities 2,264,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -139,000,000
Change in NCWC -230,000,000
EBIT 282,000,000
Tax Provision -691,000,000
Depreciation and Amortization 578,000,000
Capital Expenditure -379,000,000
Unlevered Free Cash Flow 251,000,000

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