Discounted Cash Flow (DCF) Analysis Levered

Fox Corporation (FOXA)

$34.19

+0.73 (+2.18%)

All numbers are in Millions, Currency in USD

Stock DCF: 99.41 | 34.19 | undervalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	9,921	10,153	11,389	12,303	12,909	13,795.30	14,742.46	15,754.64	16,836.32	17,992.27
Revenue (%)
Operating Cash Flow	1,655	1,317	2,524	2,365	2,639	2,524.02	2,697.31	2,882.50	3,080.41	3,291.91
Operating Cash Flow (%)
Capital Expenditure	-191	-215	-235	-359	-484	-352.43	-376.63	-402.48	-430.12	-459.65
Capital Expenditure (%)
Free Cash Flow	1,464	1,102	2,289	2,006	2,155	2,171.59	2,320.69	2,480.02	2,650.29	2,832.26

Weighted Average Cost Of Capital

Share price	$ 34.19
Beta	0.942
Diluted Shares Outstanding	595
Cost of Debt
Tax Rate	26.32
After-tax Cost of Debt	3.44%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.304
Total Debt	8,452
Total Equity	20,343.05
Total Capital	28,795.05
Debt Weighting	29.35
Equity Weighting	70.65
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	9,921	10,153	11,389	12,303	12,909	13,795.30	14,742.46	15,754.64	16,836.32	17,992.27
Operating Cash Flow	1,655	1,317	2,524	2,365	2,639	2,524.02	2,697.31	2,882.50	3,080.41	3,291.91
Capital Expenditure	-191	-215	-235	-359	-484	-352.43	-376.63	-402.48	-430.12	-459.65
Free Cash Flow	1,464	1,102	2,289	2,006	2,155	2,171.59	2,320.69	2,480.02	2,650.29	2,832.26
WACC
PV LFCF						1,926.52	1,939.15	1,951.86	1,964.65	1,977.52
SUM PV LFCF										10,361.87

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.17
Free cash flow (t + 1)	2,888.90
Terminal Value	69,278.22
Present Value of Terminal Value	51,355.58

Intrinsic Value

Enterprise Value	61,717.45
Net Debt	2,566
Equity Value	59,151.45
Shares Outstanding	595
Equity Value Per Share	99.41