FOX
Fox Corporation
$50.37
Platform & Compounding FCF
75%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 36.5% below fair value
You pay
$50.37
Bear
$76.61
Fair
$79.38
Bull
$85.97
Bear
$76.61
+52.1%
3% stage 1 growth, 11% discount
Fair
$79.38
+57.6%
3% stage 1 growth, 11% discount
Bull
$85.97
+70.7%
4% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (3% base case)
Terminal Value % of EV
33%
Implied Market Multiple
8.4x
Market is pricing in (growth)
-3.1%
vs 3.5% base
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 $71.00 from 42 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $79.38 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