Discounted Cash Flow (DCF) Analysis Unlevered

Fox Corporation (FOXA)

$36

+1.95 (+5.73%)

All numbers are in Millions, Currency in USD

Stock DCF: 87.27 | 36 | undervalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	10,153	11,389	12,303	12,909	13,974	15,139.95	16,403.17	17,771.80	19,254.62	20,861.17
Revenue (%)
EBITDA	2,343	2,591	2,028	3,562	2,400	3,242.33	3,512.86	3,805.96	4,123.52	4,467.57
EBITDA (%)
EBIT	2,172	2,379	1,770	3,262	2,037	2,922.44	3,166.28	3,430.47	3,716.69	4,026.80
EBIT (%)
Depreciation	171	212	258	300	363	319.89	346.58	375.50	406.83	440.77
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	2,500	3,234	4,645	5,886	5,200	5,256.05	5,694.60	6,169.74	6,684.52	7,242.25
Total Cash (%)
Account Receivables	1,833	1,967	1,888	2,029	2,128	2,471.34	2,677.55	2,900.95	3,143	3,405.24
Account Receivables (%)
Inventories	1,180	1,129	856	729	791	1,205.16	1,305.71	1,414.66	1,532.69	1,660.58
Inventories (%)
Accounts Payable	-	-	-	-	2,296	2,487.57	2,695.13	2,920	3,163.63	3,427.60
Accounts Payable (%)
Capital Expenditure	-215	-235	-359	-484	-307	-395.01	-427.97	-463.67	-502.36	-544.28
Capital Expenditure (%)

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

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	10,153	11,389	12,303	12,909	13,974	15,139.95	16,403.17	17,771.80	19,254.62	20,861.17
EBITDA	2,343	2,591	2,028	3,562	2,400	3,242.33	3,512.86	3,805.96	4,123.52	4,467.57
EBIT	2,172	2,379	1,770	3,262	2,037	2,922.44	3,166.28	3,430.47	3,716.69	4,026.80
Tax Rate	-0.78%	28.28%	31.76%	26.32%	28.87%	22.89%	22.89%	22.89%	22.89%	22.89%
EBIAT	2,189.02	1,706.16	1,207.81	2,403.46	1,448.99	2,253.51	2,441.54	2,645.25	2,865.96	3,105.09
Depreciation	171	212	258	300	363	319.89	346.58	375.50	406.83	440.77
Accounts Receivable	-	-134	79	-141	-99	-343.34	-206.20	-223.41	-242.05	-262.24
Inventories	-	51	273	127	-62	-414.16	-100.55	-108.94	-118.03	-127.88
Accounts Payable	-	-	-	-	-	191.57	207.55	224.87	243.64	263.96
Capital Expenditure	-215	-235	-359	-484	-307	-395.01	-427.97	-463.67	-502.36	-544.28
UFCF	2,145.02	1,600.16	1,458.81	2,205.46	1,343.99	1,612.46	2,260.95	2,449.59	2,653.98	2,875.42
WACC
PV UFCF						1,510.22	1,983.32	2,012.55	2,042.21	2,072.31
SUM PV UFCF										9,620.60

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.77
Free cash flow (t + 1)	2,932.93
Terminal Value	61,486.96
Present Value of Terminal Value	44,313.57

Intrinsic Value

Enterprise Value	53,934.18
Net Debt	2,006
Equity Value	51,928.18
Shares Outstanding	595
Equity Value Per Share	87.27