Discounted Cash Flow (DCF) Analysis Levered

News Corporation (NWS)

$16.56

+0.22 (+1.35%)

All numbers are in Millions, Currency in USD

Stock DCF: 17.07 | 16.56 | 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	9,024	10,074	9,008	9,358	10,385	10,798.17	11,227.77	11,674.46	12,138.93	12,621.88
Revenue (%)
Operating Cash Flow	757	928	780	1,237	1,354	1,134.16	1,179.28	1,226.20	1,274.98	1,325.71
Operating Cash Flow (%)
Capital Expenditure	-364	-572	-438	-390	-499	-508.52	-528.75	-549.79	-571.66	-594.40
Capital Expenditure (%)
Free Cash Flow	393	356	342	847	855	625.64	650.53	676.41	703.32	731.30

Weighted Average Cost Of Capital

Share price	$ 16.56
Beta	1.320
Diluted Shares Outstanding	592.50
Cost of Debt
Tax Rate	23.28
After-tax Cost of Debt	1.83%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.735
Total Debt	4,155
Total Equity	9,811.80
Total Capital	13,966.80
Debt Weighting	29.75
Equity Weighting	70.25
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	9,024	10,074	9,008	9,358	10,385	10,798.17	11,227.77	11,674.46	12,138.93	12,621.88
Operating Cash Flow	757	928	780	1,237	1,354	1,134.16	1,179.28	1,226.20	1,274.98	1,325.71
Capital Expenditure	-364	-572	-438	-390	-499	-508.52	-528.75	-549.79	-571.66	-594.40
Free Cash Flow	393	356	342	847	855	625.64	650.53	676.41	703.32	731.30
WACC
PV LFCF						470.58	455.67	441.23	427.26	413.72
SUM PV LFCF										2,734.39

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.38
Free cash flow (t + 1)	745.93
Terminal Value	13,864.84
Present Value of Terminal Value	9,711.76

Intrinsic Value

Enterprise Value	12,446.14
Net Debt	2,333
Equity Value	10,113.14
Shares Outstanding	592.50
Equity Value Per Share	17.07