Discounted Cash Flow (DCF) Analysis Unlevered
News Corporation (NWS)
$16.3
+0.11 (+0.68%)
All numbers are in Millions, Currency in USD
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 | 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 (%) | ||||||||||
| EBITDA | -680 | 999 | -579 | 1,124 | 1,462 | 476.04 | 494.98 | 514.67 | 535.15 | 556.44 |
| EBITDA (%) | ||||||||||
| EBIT | -1,152 | 340 | -1,223 | 444 | 774 | -232.59 | -241.85 | -251.47 | -261.47 | -271.88 |
| EBIT (%) | ||||||||||
| Depreciation | 472 | 659 | 644 | 680 | 688 | 708.63 | 736.83 | 766.14 | 796.62 | 828.32 |
| 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 | 2,034 | 1,643 | 1,517 | 2,236 | 1,822 | 2,097.62 | 2,181.07 | 2,267.84 | 2,358.07 | 2,451.88 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 1,612 | 1,544 | 1,203 | 1,498 | 1,502 | 1,663.26 | 1,729.43 | 1,798.23 | 1,869.78 | 1,944.17 |
| Account Receivables (%) | ||||||||||
| Inventories | 376 | 348 | 348 | 253 | 311 | 371.08 | 385.84 | 401.20 | 417.16 | 433.75 |
| Inventories (%) | ||||||||||
| Accounts Payable | 605 | 411 | 351 | 321 | 411 | 476.60 | 495.56 | 515.28 | 535.78 | 557.09 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -364 | -572 | -438 | -390 | -499 | -508.52 | -528.75 | -549.79 | -571.66 | -594.40 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 16.3 |
|---|---|
| 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 | 9.836 |
| Total Debt | 4,155 |
| Total Equity | 9,657.75 |
| Total Capital | 13,812.75 |
| Debt Weighting | 30.08 |
| Equity Weighting | 69.92 |
| 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 | 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 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | -680 | 999 | -579 | 1,124 | 1,462 | 476.04 | 494.98 | 514.67 | 535.15 | 556.44 |
| EBIT | -1,152 | 340 | -1,223 | 444 | 774 | -232.59 | -241.85 | -251.47 | -261.47 | -271.88 |
| Tax Rate | -39.03% | 56.21% | 16.73% | 26.67% | 23.28% | 16.77% | 16.77% | 16.77% | 16.77% | 16.77% |
| EBIAT | -1,601.59 | 148.87 | -1,018.36 | 325.60 | 593.84 | -193.58 | -201.28 | -209.29 | -217.62 | -226.28 |
| Depreciation | 472 | 659 | 644 | 680 | 688 | 708.63 | 736.83 | 766.14 | 796.62 | 828.32 |
| Accounts Receivable | - | 68 | 341 | -295 | -4 | -161.26 | -66.17 | -68.81 | -71.54 | -74.39 |
| Inventories | - | 28 | -0 | 95 | -58 | -60.08 | -14.76 | -15.35 | -15.96 | -16.60 |
| Accounts Payable | - | -194 | -60 | -30 | 90 | 65.60 | 18.96 | 19.72 | 20.50 | 21.32 |
| Capital Expenditure | -364 | -572 | -438 | -390 | -499 | -508.52 | -528.75 | -549.79 | -571.66 | -594.40 |
| UFCF | -1,493.59 | 137.87 | -531.36 | 385.60 | 810.84 | -149.21 | -55.18 | -57.38 | -59.66 | -62.03 |
| WACC | ||||||||||
| PV UFCF | -138.89 | -47.81 | -46.28 | -44.79 | -43.35 | |||||
| SUM PV UFCF | -321.12 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.43 |
| Free cash flow (t + 1) | -63.27 |
| Terminal Value | -1,165.27 |
| Present Value of Terminal Value | -814.33 |
Intrinsic Value
| Enterprise Value | -1,135.45 |
|---|---|
| Net Debt | 2,333 |
| Equity Value | -3,468.45 |
| Shares Outstanding | 592.50 |
| Equity Value Per Share | -5.85 |