NWSA
News Corporation
$29.54
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 91.2% above fair value
You pay
$29.54
Bear
$12.36
Fair
$15.45
Bull
$18.54
Bear
$12.36
-58.2%
$1.03 × 12x P/E
Fair
$15.45
-47.7%
$1.03 × 15x P/E
Bull
$18.54
-37.2%
$1.03 × 18x P/E
Adjust Assumptions
15.0x
1.03$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
28.7x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (28 analysts)
$32.20
Divergence from AlphaVal
52%
Summary
Applying a 15x P/E to adjusted EPS of $1.03, the base-case value is $15.45 per share.
Warnings
Wall Street's average price target is $32.20 (from 28 analysts). Our estimate is 52% below the consensus -- consider that gap carefully.
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