FOX
Fox Corporation
$57.24
Platform & Compounding FCF
75%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 32.8% below fair value
You pay
$57.24
Bear
$80.02
Fair
$85.16
Bull
$92.98
Bear
$80.02
+39.8%
3% stage 1 growth, 11% discount
Fair
$85.16
+48.8%
4% stage 1 growth, 11% discount
Bull
$92.98
+62.4%
5% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (4% base case)
Terminal Value % of EV
33%
Implied Market Multiple
9.4x
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $85.00 from 42 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $85.16 per share.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions