News Corporation (NWSA) DCF Valuation
TGM's two-stage DCF values News Corporation (NWSA) between $16.81 and $27.56 depending on assumptions, with a base case of $20.56. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use) (floored at 2%)), fading to 2.5% long-run; the discount rate (8.6%) reflects its beta.
What would today's price require?
$24.98 is justified only if free cash flow grows about +6.9% a year (fading to 2.5% long-run) at a 8.6% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 9.6% | $16.81 |
| Base case | 2.0%/yr | 8.6% | $20.56 |
| Optimistic | 5.0%/yr | 7.6% | $27.56 |
| Analyst DCF (FMP) | independent reference — different model | $32.53 | |
Current Price
$24.98
Market-Implied Growth
+6.9%/yr
vs -11.2% 5Y actual
Model Scenario Range
$16.81 – $27.56
model output — not a price target
NWSA DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for NWSA (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $664.5M · 0.56B shares · net cash $607.0M
Estimated Fair Value
$20.23
-19.0% vs $24.98
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 2.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $24.98; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.6% | $25.60 | $27.33 | $29.48 | $32.23 | $35.87 |
| 7.6% | $21.55 | $22.64 | $23.95 | $25.54 | $27.52 |
| 8.6% | $18.64 | $19.38 | $20.23 | $21.23 | $22.44 |
| 9.6% | $16.46 | $16.97 | $17.56 | $18.23 | $19.02 |
| 10.6% | $14.75 | $15.12 | $15.54 | $16.01 | $16.55 |
About News Corporation
News Corporation, an influential media and information services entity, is dedicated to producing and disseminating premium, engaging content along with a diverse array of products and services for both individual consumers and corporate clients worldwide. Its operations are strategically segmented into six distinct divisions: Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media, and an "Other" category. The company supplies a wide spectrum of content and data solutions, featuring esteemed publications and services such as The Wall Street Journal, Barron's, MarketWatch, Investor's Business Daily, Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, and OPIS. These are distributed across numerous platforms, including traditional newspapers, newswires, dedicated websites, mobile applications, newsletters, magazines, proprietary databases, live journalism events, video content, and podcasts. News Corporation also manages a substantial portfolio of daily, Sunday, weekly, and bi-weekly newspapers. Noteworthy titles include The Australian, The Weekend Australian, The Daily Telegraph, The Sunday Telegraph, Herald Sun, Sunday Herald Sun, The Courier Mail, The Sunday Mail, The Advertiser, Sunday Mail, The Sun, The Sun on Sunday, The Times, The Sunday Times, and the New York Post, complemented by various digital mastheads and associated online properties. Beyond news, the company publishes a broad range of books, encompassing general fiction, nonfiction, children's literature, and religious titles. It further delivers sports, entertainment, and news programming to pay-TV and streaming subscribers, as well as other commercial licensees, via cable, satellite, and internet distribution. Additionally, it secures broadcasting rights for live sporting events. Moreover, News Corporation extends its services to include property and real estate-related advertising and offerings via its websites and mobile applications, provides online real estate services, and offers financial services. The company was established in 2012 and maintains its primary corporate office in New York, New York.
- Sector
- Communication Services
- Industry
- Entertainment
- CEO
- Robert J. Thomson