Discounted Cash Flow (DCF) Analysis Levered

News Corporation (NWS)

$20.835

-0.57 (-2.64%)
All numbers are in Millions, Currency in USD
Stock DCF: 15.84 | 20.835 | overvalue

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 9,02410,0749,0089,35810,38510,798.1711,227.7711,674.4612,138.9312,621.88
Revenue (%)
Operating Cash Flow 7579287801,2371,3541,134.161,179.281,226.201,274.981,325.71
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 393356342847855625.64650.53676.41703.32731.30

Weighted Average Cost Of Capital

Share price $ 20.835
Beta 1.286
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 9.695
Total Debt 4,155
Total Equity 12,344.74
Total Capital 16,499.74
Debt Weighting 25.18
Equity Weighting 74.82
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 9,02410,0749,0089,35810,38510,798.1711,227.7711,674.4612,138.9312,621.88
Operating Cash Flow 7579287801,2371,3541,134.161,179.281,226.201,274.981,325.71
Capital Expenditure -364-572-438-390-499-508.52-528.75-549.79-571.66-594.40
Free Cash Flow 393356342847855625.64650.53676.41703.32731.30
WACC
PV LFCF 580.85560.73541.30522.55504.45
SUM PV LFCF 2,709.89

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.71
Free cash flow (t + 1) 745.93
Terminal Value 13,063.54
Present Value of Terminal Value 9,011.16

Intrinsic Value

Enterprise Value 11,721.05
Net Debt 2,333
Equity Value 9,388.05
Shares Outstanding 592.50
Equity Value Per Share 15.84