NWSA · NMS · Communication Services
News Corporation
Also onShortfallConsensus DriftCrosscheck
Implied value per share
USD 17.70
Market price
USD 29.69
Implied upside
-40.4%
10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2026-06-30
Value Per Share
Same forecast, different terminal treatment. Percentages vs price.
Forecast Cashflows
Reporting currency (USD). Outflows negative.
| Line | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | FY35 | FY36 | CAGR |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | USD 9.4bn | USD 9.7bn | USD 10.1bn | USD 10.4bn | USD 10.7bn | USD 11.0bn | USD 11.3bn | USD 11.6bn | USD 11.9bn | USD 12.2bn | +3.0% |
| EBIT | USD 990.3m | USD 1.0bn | USD 1.1bn | USD 1.1bn | USD 1.1bn | USD 1.2bn | USD 1.2bn | USD 1.2bn | USD 1.3bn | USD 1.3bn | +3.0% |
| NOPAT | USD 782.4m | USD 809.2m | USD 835.9m | USD 862.6m | USD 889.2m | USD 915.5m | USD 941.6m | USD 967.3m | USD 992.6m | USD 1.0bn | +3.0% |
| Add depreciation & amortisation | USD 501.6m | USD 518.8m | USD 536.0m | USD 553.1m | USD 570.1m | USD 587.0m | USD 603.7m | USD 620.2m | USD 636.4m | USD 652.3m | +3.0% |
| Less capital expenditure | USD -428.1m | USD -477.4m | USD -529.0m | USD -582.8m | USD -638.8m | USD -697.0m | USD -757.1m | USD -819.2m | USD -883.1m | USD -948.7m | +9.2% |
| Capex, % of revenue | 4.5% | 4.9% | 5.3% | 5.6% | 6.0% | 6.3% | 6.7% | 7.0% | 7.4% | 7.8% | - |
| Less increase in working capital | USD -68.7m | USD -57.4m | USD -57.3m | USD -57.2m | USD -56.9m | USD -56.4m | USD -55.8m | USD -55.1m | USD -54.2m | USD -53.1m | -2.8% |
| Free cashflow to firm | USD 787.2m | USD 793.2m | USD 785.6m | USD 775.7m | USD 763.6m | USD 749.1m | USD 732.3m | USD 713.2m | USD 691.7m | USD 667.8m | -1.8% |
| Discount factor | 0.9597 | 0.8838 | 0.8140 | 0.7497 | 0.6904 | 0.6359 | 0.5856 | 0.5393 | 0.4967 | 0.4575 | - |
| Present value | USD 755.4m | USD 701.0m | USD 639.4m | USD 581.5m | USD 527.2m | USD 476.3m | USD 428.9m | USD 384.7m | USD 343.6m | USD 305.5m | - |
| Present Value Of The Forecast | USD 5.1bn | ||||||||||
Discount Rate
Source shown per component. All overridable above.
| Risk-free rate | 4.89% | US 10-year Treasury (^TNX), 2026-11-02 |
| Equity risk premium | 4.23% | Damodaran, January 2026 |
| Beta | 1.007 | Reported 1.010, pulled toward 1.0 (Blume) |
| Cost of equity | 9.15% | Risk-free + beta x equity risk premium |
| Cost of debt | 6.89% | Assumed: risk-free + 200bp (interest expense not reported) |
| Market capitalisation | USD 16.0bn | 84.6% of capital |
| Total debt | USD 2.9bn | 15.4% of capital, book value as a proxy |
| Tax rate | 21.0% | Effective, capped at statutory |
| WACC | 8.58% | E/V x Re + D/V x Rd x (1 - t) |
Terminal Value
Perpetuity growth is intrinsic. The exit multiple defaults to the company's current EV/EBITDA, so it answers a different question - what the shares are worth if today's rating holds and EBITDA grows as forecast.
Perpetuity growth at 2.50%
52% of EV
- Forecast FCFF, final year
- USD 667.8m
- Capex at depreciation, working capital in reinvestment
- USD 1.0bn
- Less reinvestment at g/ROIC (29.1% of NOPAT)
- USD -296.4m
- Capitalised
- USD 721.0m
- ROIC (WACC floor)
- 8.6%
- Terminal value, undiscounted
- USD 12.2bn
- Terminal value, discounted
- USD 5.6bn
- Enterprise value
- USD 10.7bn
- Less net debt
- USD 820.0m
- Equity value
- USD 9.9bn
Exit at 10.3x EBITDA
64% of EV
- Terminal value, undiscounted
- USD 20.0bn
- Terminal value, discounted
- USD 9.2bn
- Enterprise value
- USD 14.3bn
- Less net debt
- USD 820.0m
- Equity value
- USD 13.5bn
Spread between methods: 31%.
Sensitivity
Value per share (USD) by discount rate and long-run growth.
| Long-run growth | |||||
|---|---|---|---|---|---|
| Discount rate | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
| 6.58% | 24.22 | 23.89 | 23.56 | 23.24 | 22.92 |
| 7.58% | 20.78 | 20.50 | 20.22 | 19.93 | 19.65 |
| 8.58% | 18.17 | 17.93 | 17.70 | 17.46 | 17.23 |
| 9.58% | 16.11 | 15.91 | 15.71 | 15.51 | 15.31 |
| 10.58% | 14.45 | 14.27 | 14.10 | 13.93 | 13.76 |
Outlined: this model. Green text: above today's price of 29.69. Shading: distance from this model's own value.
Priced In
What each input would have to be to justify the current price, one at a time.
| Input | Actual | Model | Implied | Gap |
|---|---|---|---|---|
| Revenue growth, a year | 4.1% | 3.1% | 10.0% | |
| EBIT margin | 12.6% | 10.5% | 17.0% | |
| Discount rate | - | 8.6% | 5.7% |
Live formulas, not pasted numbers - edit a driver and the workbook reprices.
Yahoo Finance and RBA data. General information, not advice. Methodology.