Discounted Cash Flow (DCF) Analysis Levered

Fox Corporation (FOXA)

$36

+1.95 (+5.73%)
All numbers are in Millions, Currency in USD
Stock DCF: 96.40 | 36 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 10,15311,38912,30312,90913,97415,139.9516,403.1717,771.8019,254.6220,861.17
Revenue (%)
Operating Cash Flow 1,3172,5242,3652,6391,8842,673.152,896.193,137.843,399.653,683.31
Operating Cash Flow (%)
Capital Expenditure -215-235-359-484-307-395.01-427.97-463.67-502.36-544.28
Capital Expenditure (%)
Free Cash Flow 1,1022,2892,0062,1551,5772,278.152,468.232,674.172,897.293,139.03

Weighted Average Cost Of Capital

Share price $ 36
Beta 0.884
Diluted Shares Outstanding 595
Cost of Debt
Tax Rate 28.87
After-tax Cost of Debt 3.66%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.811
Total Debt 7,206
Total Equity 21,420
Total Capital 28,626
Debt Weighting 25.17
Equity Weighting 74.83
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 10,15311,38912,30312,90913,97415,139.9516,403.1717,771.8019,254.6220,861.17
Operating Cash Flow 1,3172,5242,3652,6391,8842,673.152,896.193,137.843,399.653,683.31
Capital Expenditure -215-235-359-484-307-395.01-427.97-463.67-502.36-544.28
Free Cash Flow 1,1022,2892,0062,1551,5772,278.152,468.232,674.172,897.293,139.03
WACC
PV LFCF 2,133.692,165.142,197.062,229.442,262.30
SUM PV LFCF 10,987.63

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.77
Free cash flow (t + 1) 3,201.81
Terminal Value 67,123.97
Present Value of Terminal Value 48,376.17

Intrinsic Value

Enterprise Value 59,363.79
Net Debt 2,006
Equity Value 57,357.79
Shares Outstanding 595
Equity Value Per Share 96.40