NWS
News Corporation
$33.47
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 116.6% above fair value
You pay
$33.47
Bear
$12.36
Fair
$15.45
Bull
$18.54
Bear
$12.36
-63.1%
$1.03 × 12x P/E
Fair
$15.45
-53.8%
$1.03 × 15x P/E
Bull
$18.54
-44.6%
$1.03 × 18x P/E
Adjust Assumptions
15.0x
1.03$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
32.5x
Summary
Applying a 15x P/E to adjusted EPS of $1.03, the base-case value is $15.45 per share.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples