NWS
News Corporation
$29.68
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 50.0% above fair value
You pay
$29.68
Bear
$15.83
Fair
$19.79
Bull
$23.75
Bear
$15.83
-46.7%
$1.06 × 15x P/E
Fair
$19.79
-33.3%
$1.06 × 19x P/E
Bull
$23.75
-20.0%
$1.06 × 22x P/E
Key Value Driver
Normalized P/E multiple (19x base case)
Implied Market Multiple
28.1x
Summary
Applying a 19x P/E to adjusted EPS of $1.06, the base-case value is $19.79 per share.
Warnings
The company's reported profits differ from official accounting profits by 31%. Check what costs are being left out of the adjusted number.
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